UK Business & Trade Secretary highlights opportunities for Women-Owned SMEs in Proposed India-UK Free Trade Agreement

UK Business and Trade Secretary, Kemi Badenoch, has emphasized the potential benefits for women-owned and women-led small and medium enterprises (SMEs) in the proposed free-trade agreement (FTA) between India and the UK.

In response to a report by the House of Commons Business and Trade Committee, which scrutinizes government policies on international trade, Badenoch affirmed the importance of trade and gender equality cooperation.

Badenoch announced the provisional closure of the chapter on trade and gender equality, which aims to enhance the participation of women-owned and women-led SMEs in international commerce. The inclusion of this chapter is expected to bolster the competitiveness of such enterprises and provide them with opportunities to flourish.

When asked about measures to mitigate potential negative impacts of trade liberalization on micro, small, and medium enterprises (MSMEs) and rural areas, Badenoch expressed optimism that the FTA would encourage businesses of all sizes and from every region in India and the UK to seize the benefits of the agreement.

Highlighting the significance of SMEs in both economies, the UK Secretary stated, "We have provisionally agreed on a chapter that ensures SMEs can understand and navigate the systems of the other country and leverage the numerous advantages of the comprehensive FTA."

According to data from the UK government, bilateral trade between India and the UK exceeded £36 billion in 2022, marking a 45% increase from the previous year. This robust trade relationship supports half a million jobs in both nations. With the planned trade agreement, the UK aims to triple its trade with India by 2030.

In 2022, UK imports from India were valued at £20.8 billion, representing a 35% surge compared to 2021. India accounted for 2.1% of the UK's total trade, ranking as the 12th largest trading partner. The 10th round of FTA negotiations concluded in June, with the 11th round scheduled for July.

SMEs constitute a significant portion of the UK's business landscape, representing 99.9% of all businesses. Official figures indicate that the UK had approximately 5.5 million SMEs in early 2022, comprising 5.47 million small firms and 35,900 medium-sized enterprises, compared to just 7,700 large corporations.

As the India-UK FTA negotiations progress, the focus on empowering women-owned and women-led SMEs highlights the commitment to fostering inclusive economic growth and gender equality. The proposed agreement presents an opportunity for these enterprises to thrive and contribute to the flourishing trade partnership between the two nations.