Jersey firms eye new trade opportunities in India

Jersey businesses could benefit from new trading opportunities in India after the island was included in a UK trade agreement with the country, ministers have said.

The UK-India Comprehensive Economic and Trade Agreement came into force on 15 July, reducing trade barriers for Jersey companies exporting goods to India.

A report to the States Assembly said Jersey’s participation could provide “scope for future growth and development of stronger trading links over time”.

India was identified as a potential market for Jersey businesses, with its population of around 1.47 billion and strong economic growth highlighted as key opportunities.

However, existing trade between Jersey and India remains relatively small.

Between 2018 and 2022, Jersey imported around £630,000 worth of goods from India, mainly clothing and jewellery. Exports during the same period were valued at approximately £16,500, with financial products, including card readers, accounting for much of the total.

The government said it planned to promote the opportunities created by the agreement and gauge interest among Jersey businesses.

Officials also stressed that safeguards would remain in place to prevent potentially harmful products entering the island, including goods containing banned pesticides or growth hormones associated with health risks.

Ministers said Jersey’s inclusion in the agreement was also important for maintaining close alignment with the UK and other Crown Dependencies on trade matters.

The report warned that leaving Jersey outside the agreement could eventually lead to greater differences between the Crown Dependencies within the UK Crown Dependencies Customs Union.

For local firms, the agreement could therefore provide a route into one of the world’s largest and fastest-growing markets, although the scale of any future trade will depend on how many Jersey businesses choose to take up the opportunity.