Moves by the North of England to Unlock India Trade

UPSC Syllabus: Gs Paper 2- International Relations

Introduction

The India–UK Comprehensive Economic and Trade Agreement (CETA) has created new opportunities for trade and investment. The Great North initiative brings Northern England’s regional leaders, businesses and institutions together to turn these opportunities into practical outcomes. Its mission focuses on attracting Indian investment, expanding market access and building long-term partnerships.

The Great North Initiative

1. Collective Regional Approach: The Great North brings together mayors, businesses, universities and cultural organisations. They jointly promote Northern England to Indian investors and businesses.
2. Regional Economic Strength: Northern England has an economy worth over £340 billion. The mission presents its combined industrial, research and investment strengths to Indian partners.
3. Joint Regional Representation: Nearly 200 delegates participated in the mission, supported by the UK Government and HSBC. It was the first joint delegation from Northern England to visit India.
4. Targeted Business Engagement: The programme includes a trade and investment event in Delhi. Delegations will also engage with businesses and institutions in Bengaluru, Hyderabad and other Indian cities.
5. Sectoral Focus: The mission targets advanced manufacturing, clean energy, life sciences, technology and creative industries. These sectors offer opportunities for cooperation between India and Northern England.
6. Academic and Research Cooperation: Northern universities aim to develop research partnerships, student exchanges and innovation projects with Indian institutions. The British Council and Study UK support these efforts.
7. Tourism, Culture and Sports: VisitBritain and regional tourism businesses aim to attract more Indian visitors. Sporting and cultural organisations will use shared interests, including football and cricket, to strengthen ties.
8. Institutional Support: The UK India Business Council (UKIBC) helps British businesses understand India’s economic opportunities. It promotes India as a partner in research, technology, talent and supply chains.

Significance of the Initiative

1. Economic Growth: The UK Government estimates that the agreement could add £450 million annually to Northern England’s economy in the long run. This includes £210 million in the North West, £170 million in Yorkshire and the Humber, and £70 million in the North East.
2. Investment and Employment: Indian companies have invested over £1 billion in North West England, supporting more than 6,700 jobs. Such investment provides a foundation for further business expansion and employment.
3. People-to-People Connections: Nearly 540,000 people of Indian origin live across Northern England. These existing social ties support closer economic and cultural relations.
4. Expanding Indian Business Presence: The number of Indian-owned companies in the UK rose nearly 60% year-on-year. Their combined revenues exceeded £105 billion, according to Grant Thornton UK’s India Meets Britain Tracker.
5. Growth in Bilateral Trade: India–UK bilateral trade reached £47.4 billion in 2025, an increase of 11.7% over the previous year. Growth was concentrated in advanced manufacturing, clean energy and technology.
6. Regional Development: The initiative promotes investment in Northern England beyond London. It connects Indian businesses with regional industries, universities and innovation centres.
7. Strategic Partnership: India can contribute to British research and development, technology, talent and supply chains. This creates opportunities beyond the conventional buying and selling of goods.
8. Sustainable Innovation: Cooperation can support low-carbon manufacturing and cleaner supply chains. Low Carbon Materials is exploring the use of biochar made from Indian crop waste in construction materials.
9. Existing Travel Links: More than 500,000 people travel between Northern England and India through Manchester Airport annually. These connections provide a base for expanding tourism and business travel.

Key Challenges

1. Limited Business Awareness: Small and medium enterprises may not know which concessions the agreement offers. This can prevent them from identifying suitable export opportunities.
2. Rules of Origin: Businesses must establish whether their products meet the agreement’s origin requirements. Products that do not qualify cannot receive the relevant preferential tariffs.
3. Documentation and Administrative Costs: Businesses must secure the correct documents to claim tariff concessions. Administrative work and related costs can reduce the practical value of these benefits.
4. Implementation Gap: Signing an agreement does not automatically generate business. Official visits and meetings must lead to actual contracts, investment and commercial partnerships.
5. Regional Differences: Northern England’s regions have different industrial strengths, while Indian states specialise in different sectors. Effective cooperation requires matching these strengths with suitable partners.
6. Need for Sustained Coordination: Long-term results require continued cooperation among governments, businesses, universities and financial institutions. One-time visits cannot ensure lasting economic benefits.

Way Forward

1. Improve Business Awareness: Businesses need clear guidance on tariff concessions and product eligibility. They must also understand origin rules and documentation requirements before exporting.
2. Use Practical Guidance: The UK–India CETA Business Utilisation Manual was developed by UKIBC and launched by Union Commerce and Industry Minister Piyush Goyal in London. It helps businesses identify opportunities and understand how to use the agreement.
3. Promote Sector-Specific Partnerships: Cooperation should match Indian states with suitable partners in Northern England. Examples include Maharashtra’s aerospace sector, Gujarat’s chemical industry, Karnataka’s information technology ecosystem and Tamil Nadu’s pharmaceutical sector.
4. Convert Trade Missions into Business Outcomes: Meetings should lead to contracts, investment and long-term partnerships. Continued engagement can turn initial discussions into practical results.
5. Expand Research Collaboration: Universities and businesses should develop joint research projects and student exchanges. These partnerships can strengthen innovation and technological cooperation.
6. Support Sustainable Industry: India and Northern England should develop partnerships in clean energy and low-carbon materials. Northern England’s research expertise can complement India’s industrial scale and supply-chain opportunities.
7. Monitor Practical Outcomes: Progress should be measured through investment, export growth and business contracts. Employment and research partnerships should also be tracked.

Conclusion

The Great North initiative seeks to turn the India–UK trade agreement into practical economic gains. Its success depends on effective implementation and lasting partnerships. By connecting regional strengths with India’s market, it can attract investment, support innovation, create jobs and strengthen bilateral economic ties.

Question for practice:

Examine how the Great North initiative seeks to strengthen India–UK trade, investment and economic cooperation.

Source: The Hindu