New banking data reveals 'huge' leap within India business corridor

HSBC UK said its data on payments and client referrals showed year-on-year growth.

London: Business activity between the UK and India has flourished in 2024 as the value of payments received by clients in Britain from India rose by 121 per cent, according to the latest data released by HSBC UK.

The multinational bank, which highlighted the figures based on its two-way support for businesses within the India-UK corridor this week, said its data on payments and client referrals showed year-on-year growth.

In the nine months to October 2024, the value of payments made by HSBC UK business clients to India reportedly rose by 32 per cent and the bank received 36 per cent more new business client referrals from HSBC India year-on-year.

“Our data shows that business between the UK and India is not only strong, it’s getting even stronger, and the opportunities for expanding businesses in India are huge,” said Cora McLaren, Head of International Subsidiary Banking at HSBC UK.

“India’s population is not only a vast number of potential customers, within it there is a growing middle class, creating opportunities for UK businesses selling high quality products and services. In addition, India is increasingly seen as a hub for Global Capability Centres – from which multinational corporates run multiple strategic functions – due to the level of language and technology skills,” she said.

The banking executive described it as a relationship that is working both ways as Indian businesses are increasingly doing business in the UK, “particularly those in the pharmaceutical sector in which India is a global leader”.

“HSBC has ties to India which go back more than 100 years. We’re very proud to be able to help ambitious UK businesses expand there and likewise welcome Indian firms operating on these shores,” she added.

The data comes as both governments are preparing to resume Free Trade Agreement (FTA) negotiations next year after Prime Ministers Keir Starmer and Narendra Modi agreed to relaunch the process during their meeting on the sidelines of the G20 Summit in Brazil last month.

“We very much welcome the renewed commitment made by both Prime Ministers at G20 and the intention to restart FTA negotiations early in 2025,” said Richard McCallum, Group CEO of the UK India Business Council (UKIBC).

"As the HSBC data show, UK-India trade is growing rapidly. This will only accelerate further when the FTA is in place... In the UKIBC's view, sustained business reforms and geopolitical factors make India a highly attractive investment destination, source of goods and services, and strategic supply chain partner for UK business across sectors,” he said.

According to official UK Department for Business and Trade (DBT) statistics, the total trade in goods and services between the UK and India was GBP 42 billion in the four quarters to the end of 2024. This is expected to be significantly enhanced with an FTA, negotiations for which began in January 2022 before being paused in the fourteenth round earlier this year due to general elections in both countries. The talks are scheduled to resume in the new year, with a clear timeline yet to be officially confirmed.