‘India will overtake the UK to become the 3rd largest economy,’ says UK High Commissioner

"For two economies roughly the same size, India will grow fast overtaking the UK to become the third largest economy by end of the decade, thus both need to work together," says the High Commissioner of the UK

Image Credit: Reuters; Representational purposes only

New Delhi: By the end of the decade, India will have surpassed the United Kingdom to become the world's third-largest economy, according to British High Commissioner to India Alex Ellis. On Tuesday at the India-UK business outreach trade and investment alliances program in New Delhi, he said "For two economies roughly the same size, India will grow fast overtaking the UK to become the third largest economy by end of the decade, thus both need to work together." Additionally, he said, "The UK has left European Union is an opportunity to write our own rules which can work well with India as there is political will... PM Modi and the UK PM Liz Truss spoke just over a week ago and had a very good conversation."

Previously, the UK High Commissioner told ANI that New Delhi and London have high hopes of completing the Free Trade Agreement (FTA) by Diwali this year, which will increase employment and economic development in India over the next 25 years.

When asked if it could be a "Diwali Dhamaka," the UK High Commissioner replied, "I hope so." "I believe we have high hopes of completing the FTA by Diwali. The FTA will increase employment, growth, and opportunities for India to grow and develop "He continued.

According to a recent industry report, bilateral trade between India and the United Kingdom is expected to more than double by 2030, owing to increased economic engagement between the two countries, diversification of global supply chains, and overall ease of doing business.

As India and the United Kingdom collaborate for economic growth in the face of global disruptions, Grant Thornton Bharat launched the second edition of Britain Meets India (BMI) Report 2022, in collaboration with the Confederation of Indian Industry (CII), and with the support of the United Kingdom's Department of International Trade (DIT).

According to the report, 618 UK companies in India employ approximately 4.66 lakh people and have a combined turnover of Rs 3,634.9 billion. 58 of these 618 companies were included in the report's Growth Tracker (companies with a turnover greater than Rs 500 million and 10% year-on-year growth) - these fast-growing UK companies achieved an average growth rate of 36.3%, a 10% increase from 2021 when fast-growing UK companies achieved an average growth rate of 26%.

In the presence of over 50 dignitaries, industry and government representatives from the UK and India, the report was launched in New Delhi by Alex Ellis CMG, High Commissioner of the United Kingdom to India, Chandrajit Banerjee, DG - CII, Vishesh C Chandiok, CEO, Grant Thornton Bharat, and Pallavi Joshi Bakhru, Partner and India-UK Corridor Leader, Grant Thornton Bharat. Meanwhile, the two countries completed the fifth round of talks for the Free Trade Agreement (FTA) last month, according to the Ministry of Commerce and Industry.