India's Economic Relations with UK

India also has strong economic relations with the United Kingdom. India was a British colony for more than 200 years. Economic relations between India and the UK have undergone radical changes since the colonial period. UK ranks fifth among India's trade partners. However before 2002, UK was the second leading trading partner of India. India is one of the leading export markets of the United Kingdom among the developing nations. Significant Foreign Direct Investment (FDI) has taken place in India from the United Kingdom. Major FDI inflows to India from UK have taken place in the following sectors -

 Power
 Telecom
 Oil and Gas
 Service industries

The major export items from India to the United Kingdom include –

 Rice
 Tea
 Garments
 Textiles
 Gems and Jewelry
 Leather and leather goods
 Footwear
 Metal products
 Softwares
 Pharmaceutical products

The major import items to India from the United Kingdom include -

 Gold
 Rough diamond
 Telecom equipment
 Power generating equipment
 Transport equipment
 Industrial machinery
 Chemicals