Stuart Preston

The study highlights that 36% of Scottish business leaders are planning to expand internationally within the forthcoming six months, with India being identified as a key growth market by 68% of respondents.

The Tracker’s data revealed that half of the surveyed Scottish businesses already have an established presence in India, with a staggering 92% of these firms intending to further expand in the country within the next two years.

As the UK-India Free Trade Agreement (FTA) negotiations continue, the anticipated benefits of the FTA are already clear to many Scottish businesses. Around 70% of respondents believe that an FTA with India will catalyse their exploration of further business opportunities in the nation.

As India’s economy continues to grow in strength, the mid-market sees many benefits to establishing a business presence in this market. The top three benefits identified by the research are:

• A fast growing and stable economy
• A large working age population
• A large consumer market

However, while establishing a business presence in an international market can offer numerous opportunities, it also presents challenges. The biggest barriers for the mid-market to building a business presence in India identified by the research are:

• Finding the right talent
• Infrastructure
• Ease of doing business

Stuart Preston, partner for Grant Thornton UK LLP in Scotland, said: “India is now the fifth largest economy in the world and is predicted to become the third largest by 2030. It therefore presents a huge opportunity for growth for businesses in Scotland

“As the country is only set to continue to grow, it is an excellent time for both those with an existing presence, and those looking to India for the first time, to be exploring potential opportunities in this market.

“With the uncertain geopolitical situation at the moment, India offers a stable and certain economic environment for investors and businesses, with, not only a fast-growing economy, but also a large working age and consumer population.”

Mr Preston continued: “The anticipated UK-India Free Trade Agreement should also help propel the relationship between the two countries further and provide an excellent platform for further investment. An FTA should reduce tariffs and duties to allow for a more level playing field for overseas businesses and give greater access to a large and fast-growing market.

“It should also allow for the relaxation of certain regulations and help improve the ease with which businesses in the UK can look to do business with, or within, India.”

He concluded: “While our research has identified the biggest challenges many businesses face when setting up in India - as there are challenges looking to grow internationally anywhere in the world – there is support available.

“The Department for Business and Trade provides support to those seeking to trade or invest in India, while firms, such as ours, can also provide tailored support for businesses exploring new markets.”