General Overview

Scotland’s GDP of about £160 billion (excluding oil), which is about 8% of the UK economy, with a growth rate of about 2% per annum. Services sector accounts for about 75% of the GDP. It includes financial services, professional and business services, tourism, and retail. The other important sectors include production (mining and quarrying, manufacturing, electricity & gas supply, and water supply & waste) 18%, construction (6%) and agriculture, forestry, and fishing (1%). Scottish Parliament can exercise policy making powers, independent of the Federal Government of the United Kingdom, on a number of devolved subjects like, tourism, transport, agriculture, forestry, fisheries, etc. which have a bearing on its economy. 

2. Scotland’s priority areas for future growth and development are services and knowledge based industries like Banking, IT, Life Sciences, Education and Research, new & renewable energy, etc. Tourism is one of the mainstays of the Scottish economy employing a large workforce.

Bilateral trade

3. The trade relations between India and Scotland have a rich historical backdrop. Scotland's connection with India can be traced back to the colonial era. Scottish houses such as Scott & Co., Fairlie Fergusson & Co., Alexander & Co., Colvin Bazett & Co., Andrew Yule & Co., acted as middlemen and purveyors of capital for indigo plantations and production in Bengal, for salt farms and saltpetre, and most of all opium and cotton. The East India Company was dependent on such companies for its primary commercial function. Similarly, jute plantations which thrived in the delta region of Bengal were major source of raw material for jute mills of Dundee in Scotland. An increased demand for jute sandbags during the Crimean war (1853 – 1856) encouraged companies to set up a number of their manufacturing units in and around Kolkata.  Tea, tobacco and sugar were other commodities of trade between the India and Scotland during the days of the Empire.

I) Exports to Scotland

4. India exports beverages, power generating machinery & equipment, metalliferous ores & metal scrap, non-ferrous metals, general industrial machinery & equipment, pulp & waste paper, Chemical materials & products, Professional, scientific & controlling ins & app, Ele machinery, app & appliances each quarter.

Indian exports (goods only) to Scotland (in million GBP)

                                    (Source: Scottish Government)

II) Imports from Scotland

5. India imports power generating machinery & equipment, articles of apparel & clothing accessories, petroleum, petroleum products & related materials, other transport equipment, manufactures of metal, miscellaneous manufactured articles, textile yarn, fabrics, made up articles, vegetables & fruits, general industrial machinery & equipment each quarter.

Indian imports (goods only) from Scotland (in million GBP)

                                    (Source: Scottish Government)

6. India is one of the biggest importers of Scotch Whisky with a 60 % increase (from 136 million bottles to 219 million bottles) in 2022 over the previous year. India purchased £282 million (defined by value) of Scotch Whisky in 2022, which  represents a  93%  increase from 2021. Though import of Scotch Whisky has grown surpassing other countries, the significant growth represents only 2% of the total Whisky market in India. Diageo, the leading UK multinational alcoholic beverage company has investments in India’s alcoholic beverage sector. (Source: Scotch Whisky Investment) 

7. Currently, air freight is largely handled at Scotland’s important airports like Edinburgh, Inverness, Glasgow, Prestwick, Aberdeen. There is a growing demand for direct air connectivity between Scotland and India from Indian community as well as industry stakeholders.

Bilateral Investments

8. Presently, India is the 11th largest inward investor into Scotland. The number of Indian – owned companies in the UK has increased significantly from 900 in 2022 to 954 in 2023.   Indian companies with significant presence in Scotland include Tata Consultancy Services (TCS), Infosys, Wipro, Usha Martin, Hinduja Global Solutions (HGS), Aegis, Piramal Healthcare, Tattva Group, Axsys. 

9. During Deputy First Minister John Swinney's visit to India in 2018, Biocon signed an MoU with Glasgow University.  During the same visit of Mr. Swinney, Hinduja Group had also announced to increase manpower at its Selkirk facility from 265 to 315 permanent jobs.

10. There are several Scottish companies operating in India either independently or in collaboration with Indian companies.  Some of the major companies are Royal Bank of Scotland, Standard Life, Weir Group, RMJM Architects, SgurrEnergy, Touch Bionics, Tennent, Aggreko, Menzies Aviation, Exova Group, Highland Spring, Holland & Sherry, Omega Diagnostics Group, Edrington, Peak Scientific, etc.  In addition, Scottish oil and gas companies, like Wood Group, Clyde Pumps, Petrofac, PSN, SGS Waterweights KBR and Selex Galileo, with their combined investments of approximate £70 million, are active in India. James Fisher and Sons Plc Inc, (through its subsidiary - JFD) supplied two deep-sea submarine rescue vehicles to the Indian Navy.

11. With the objective of enhancing trade and investments between India and Scotland, CGI Edinburgh facilitates regular interactions for Indian companies and trade bodies, such as CII, FICCI,  with Scottish companies and chambers. Details of some of the trade promotion activities organised by the Consulate in the recent past are as follows:

• Regional India Business Forum Meeting in association with Confederation of Indian Industry (CII)-UK on 05 December 2019 at the Consulate.
  
  

• Confederation of British Industries (CBI) hosted a business event “CBI Conference Series: International Trade” in Edinburgh in January 2020. During the “Ask the Experts” round-table session across key export markets with in-market specialists and exporters, Consul General (CG) and Consul (HOC) manned the ‘India table’.
  
  

• The Consulate organised an Indian textile exhibition in South Ayrshire in November 2021. 
  
  

• On the side lines of COP26, the City of Glasgow College hosted the Namami Clean Ganga event in Glasgow from 8 – 10 November,2021. 
  
  

• Tourism Promotion Event in collaboration with Tamil Nadu Government was organized at the Consulate in November 2022. A delegation from Tamil Nadu Government led by Mr. M. Mathiventhan, Minister of Tourism attended the event. 
  
  

• Round Table discussion on ‘Sustainability Sector Opportunities in India-Successful Engagement Strategies for Scottish Companies’ was held in association with cGanga Centre for Ganga River Basin Management and studies on  27th October 2022 at the Consulate. 
  
  

• The Ganga Clyde Environment and Economic Partnership (GCEEP) was announced at Rangers Football Club, Glasgow as Ganga Clyde partners with 20 river twinnings project in G20 Initiative. The event was organised by cGanga, City of Glasgow College in association with CGI, Edinburgh on 19th January 2023. 
  
  

• Buyer Sellers Meet – cum – Exhibition in association with Silk Export Promotion Council of India with participation of more than 30 Indian manufacturers was organised in Edinburgh in January 2023.  
  
  

• A round table discussion for cooperation in Green Hydrogen (GH2) Technology was held at Aberdeen in association with the Federation of Indian Chambers of Commerce and Industries (FICCI), Scottish Chambers of Commerce on 23rd February 2023.  
       

12. The Consulate has renewed its membership with the Edinburgh Chamber of Commerce. Simultaneously, the Consulate has good working relations with Scottish Chamber of Commerce, HMRC and Indian business community to promote trade and commercial exchange between India and Scotland. 

26 September 2023