'Small, midsize British firms waiting to set up GCCs in Bengaluru': Chandru K Iyer

Bengaluru: The Comprehensive Economic and Trade Agreement (CETA) between the United Kingdom of Great Britain and Northern Ireland and India is likely to come into effect by next summer. The CETA needs ratification by the British Parliament before it is being implemented.

“The CETA has been signed by the prime ministers of both India and UK. The hard work starts now in terms of the implementation. It will go to the British Parliament for ratification by both the houses. It will take a few months and hopefully, it will be implemented by next summer,” Chandru K Iyer, Deputy Trade Commissioner, South Asia (Investment), British Deputy High Commission, Bengaluru told DH.

The mood among the British citizens is upbeat as CETA is mutually beneficial to both the countries and creates more jobs across the UK. Looking at various sectors, lots of goods and products will be cheaper for both the UK and India.

The Prime Ministers of India and the UK also endorsed the new ‘India-UK Vision 2035’ during their meeting in London on July 24, 2025.

Iyer said the historic trade deal is comprehensive and looks at all aspects that are mutually beneficial. Currently, the bilateral trade is worth 44 billion pounds and it is expected that this deal will add an additional 25.5 billion pounds yearly. It is both India’s most comprehensive deal ever, and the UK’s most economically significant bilateral trade deal since leaving the EU. It significantly improves market access for businesses in both countries, leading to cheaper products and services for consumers.

From the UK perspective, the deal helps across the length and breadth of the country. It will address a lot of future looking aspects, Iyer said.

SMEs eyeing Bengaluru

The CETA or FTA with India will set up bespoke support for UK SMEs, such as dedicated contact points, helping them as they enter the market and trade with India.

It will also benefit Indian SMEs wanting to set up in the UK. This will boost trade in sectors such as food & drink including scotch whisky, Scottish salmon, and branded cosmetics with major UK beauty brands such as Dr Paw Paw and Delilah announcing new partnerships in India in 2024.

Almost 99% of British MSMEs are looking at India to increase their trade.

Bengaluru, and/or Karnataka, also stands to benefit from greater co-operation and engagement on industry-defining technologies, such as artificial intelligence in the creative industries, as part of the trade deal. Reduced tariffs in advanced manufacturing including on aircraft and engines will also accelerate trade on both sides. All these factors will reaffirm Karnataka’s appeal as a key market for high-performing companies and scalable UK investments.

India has been the second largest investor in the UK for the last six years. There are 1,197 Indian companies present in the UK. Indian restaurant brand MTR has opened two outlets in London and Hutti Kapi has opened its first outlet.

Bengaluru is home not just to global capability centres (GCCs) of major UK firms such as Tesco, Rolls-Royce, London Stock Exchange Group (LSEG), Equiniti, Diageo, Natwest, AstraZeneca, BT, and Shell – it is also home to several small and medium-sized enterprises (SMEs), he said.

“Many big boys from Britain have already made their presence with GCCs in India and Bengaluru. But we expect more midsize and smaller companies to open their GCCs in Bengaluru, which will be quite interesting. There is a renewed interest to establish GCCs in Bengaluru,” Iyer said.

Over 130 UK firms have established 250+ GCC units in India, contributing $6.5 billion to the Indian GCC economy in FY2025, according to a Zinnov report. These firms have employed more than 200,000 professionals. About 95% of UK GCCs are focused on IT, Engineering, and R&D.

In the Financial Services space, increased cooperation is expected between India and the UK. We expect Indian companies to explore setting up offices in the UK. Revolut from the UK is already present in Bengaluru and they are doing well, he said.

More than 650 British companies are operating in India and Karnataka is the third largest in terms of destination for British investments in India and more companies are going to come as a direct impact of the trade deal. “Many British companies had put their investment plans on hold and were waiting for the FTA to be signed. Now, they will start fructifying their investment plans,” Iyer said.

As part of the Technology and Security Initiative between the two countries, the British companies have identified newer areas in fields of Artificial Intelligence, Fintech, semiconductors, Quantum, Biotechnology, and critical minerals.

He said, as part of the India UK Vision 2035, the two sides will deepen collaboration in critical and emerging technologies, health, and clean energy, driving breakthroughs that enhance national resilience, unlock trade and investment, and create high value jobs.

The British Deputy High Commission is planning to organise some events with the trade chambers and British companies in Bengaluru to increase awareness about the mutual trade and investment opportunities in the run up to implementation of the UK-India CETA. The first interaction is being organised on August 12, Iyer said.