As UK-India FTA advances, experts urge strategic reforms to protect entrepreneurs, capital, and talent across borders.
LONDON : The new India-UK Free Trade Agreement is being hailed as a milestone in economic ties between the two nations. But Harsh Girish Patel, founder and CEO of global advisory firm Water & Shark, warns that unless small and medium-sized enterprises (SMEs) are placed at its core, the deal could leave its most vital contributors behind.
Speaking at the India–UK SME Leaders Meeting in the UK Parliament, Patel called on negotiators to treat SMEs as central players, not afterthoughts, and to shape the agreement into what he termed a “People’s Agreement.”
“With nearly 60 million small businesses in India and 98% of UK exporters to India falling into the SME category, these are the companies building futures, creating jobs, and taking risks,” Patel told lawmakers. “They need better tools, not bigger hurdles.”
Policy Ideas to Level the Playing Field
Patel put forward a series of practical reforms aimed at making the trade pact more accessible and beneficial for entrepreneurs:
- Market access for Indian startups – Direct entry to the London Stock Exchange’s AIM market, opening doors to global investors.
- Fast-track procurement – Smoother entry for UK SMEs into India’s public-sector contracts, a market worth around £38 billion a year.
- Simplified regulations – Cutting red tape that often discourages smaller exporters and importers.
The agreement-formally known as the India-United Kingdom Comprehensive Economic and Trade Agreement-could increase bilateral trade from $20.5 billion in 2024 to as much as $120 billion within five years. UK projections suggest it could boost the British economy by £4.8 billion annually and cut import costs by up to £900 million over the next decade.
Tackling the Talent and Capital Drain
Patel also drew attention to a shared problem: the outflow of talent and capital to other countries. In India’s case, leading entrepreneurs often move to hubs like Dubai or Singapore. In the UK, high inheritance taxes push wealthy individuals offshore.
He urged both governments to align tax, succession, and trust laws to make each country more competitive and better at retaining top talent and capital. “We cannot talk about global cooperation while watching our best minds and resources move to more advantageous jurisdictions,” he said.
Adding to this perspective, Mrs. Karina Patel, Managing Partner at Shark Legal LLC, said: “International current challenging time requires extreme strategic and service advisory. And that is where our firm, Shark Legal LLC, a boutique Moscow and Dubai based international law firm, provides a strategic solution for wealth migration and asset protection.”
Global Significance
Trade experts note that Patel’s intervention carries weight beyond the India-UK relationship. The agreement is Britain’s most significant post-Brexit trade deal and India’s most comprehensive bilateral pact to date, setting an example for how SMEs could be prioritized in future trade negotiations.
For U.S. policymakers, it offers a preview of how agreements with emerging markets might evolve. As one London-based trade analyst put it, “There’s a growing expectation that modern FTAs will address SME access, not just corporate gains.”
The Risk of Being Left Out
Although the agreement contains commitments to improve SME cooperation, many are broad in scope and lack enforcement. Sectors like legal services, digital trade, and automotive quotas remain only partially addressed, leaving room for large corporations to dominate early benefits.Patel’s push adds urgency for both governments to ensure the trade deal benefits all participants. “This is our chance to prove that free trade can empower, not just enrich,” he told Parliament.
