India is the major Foreign Direct Investment (FDI) source for the UK because many Indian firms have used it as a gateway to Europe. With the UK moving out of EU, it might not be as attractive to Indian firms as before. Intuitively, the UK government would not like to miss out Indian investment and will thus try to attract Indian firms by offering more incentives such as tax breaks, easy regulations and opening up markets

After losing access to EU single market, the necessity for the UK trade and investments would want to develop trade relationship with emerging markets from around the world. India, with its strong economic fundamentals and a large domestic market, is in a better negotiating position. India’s high proportion of skilled working-age population and high growth rate will be of particular interest for the UK. Potential sectors to benefit from an FTA between the UK and Indian include textile, machinery, engineering goods, information technology and banking