The economy of the United Kingdom is highly developed and market-orientated. It is the sixth-largest national economy in the world measured by nominal gross domestic product (GDP), ninth-largest by purchasing power parity (PPP), and twenty third-largest by GDP per capita, comprising 3.3% of world GDP. In 2020, the UK was the fifth- largest exporter in the world. While the economy was severely affected by the COVID pandemic in 2020 and 2021, Rapid vaccination and accommodative monetary and fiscal policies have resulted in better than expected recovery for the UK in the post COVID scenario.
India and the United Kingdom share close and friendly ties. Bilateral relations between the two are based on common principles of democracy as well as common views on international trade. The India-UK bilateral trade relationship is significant and both countries have pledged to double their bilateral trade by 2030. UK is among India’s major trading partners and during the year 2020-21, UK ranked 14th in the list of India’s top 25 trading partners. As per trade statistics of MoC&I, India’s trade with UK in 2020-21 was US $13.11 billion.
India’s main exports to the UK are articles of apparel & clothing accessories, power generating machinery & equipment, petroleum, petroleum products & related materials, miscellaneous manufactured articles, textile yarn, fabrics, made up articles, footwear, medicinal & pharmaceutical products, manufactures of metal, road vehicles and other transport equipment.
Currently both countries are in the process of negotiating a comprehensive trade agreement aimed at enhancing the existing bilateral trade relations. The two nations have also agreed upon an interim agreement that generates early benefits for both countries until the comprehensive agreement is concluded.
Engineering is one of the major sectors of bilateral trade between India and United Kingdom. India’s Engineering exports to UK for April-February 2020-21 is valued at US$ 2.73 billion compared to US$ 1.69 billion during same period last fiscal registering a positive growth of 60.9%.
| Top 15 engineering products exported to UK | APRIL,2020 – FEBRUARY 2021 | APRIL,2021 – FEBRUARY 2022 | Growth % |
|---|---|---|---|
| Electric Machinery and Equipment | 256.27 | 456.21 | 78.0% |
| Products of Iron and Steel | 234.32 | 387.21 | 65.3% |
| Iron and Steel | 72.23 | 317.54 | 339.6% |
| IC Engines and Parts | 145.80 | 183.26 | 25.7% |
| Other Misc. Items | 104.12 | 167.44 | 60.8% |
| Auto Components/Part | 123.77 | 155.19 | 25.4% |
| Other Construction M | 72.58 | 134.89 | 85.9% |
| Industrial Machinery for dairy, etc. | 82.95 | 114.58 | 38.1% |
| Other Non-Ferrous Metals | 83.41 | 111.13 | 33.2% |
| Aircrafts &Spacecrafts | 76.96 | 98.07 | 27.4% |
| Auto Tyres and Tubes | 61.33 | 96.29 | 57.0% |
| Aluminium and products | 48.29 | 86.93 | 80.0% |
| ATM, Injection and Moulding Machinery | 62.21 | 66.48 | 6.9% |
| Other Rubber products except footwear | 44.21 | 55.36 | 25.2% |
| Electric Machinery and Equipment | 256.27 | 456.21 | 78.0% |
| Total of top 15 products | 1468.44 | 2430.58 | 65.5% |
| Total enggexp to UK | 1698.69 | 2732.72 | 60.9% |
| Share % | 86.4 | 88.9 |