It said that industry revolution would impact virtually all sectors of the economies of India and the UK.
New Delhi: A huge potential exists in sectors including manufacturing, defence, pharmaceuticals and start-ups to boost investments between India and the UK, a report by the UK India Business Council (UKIBC) has said.
"Exciting trends in digitisation, including the onset of 4-IR (industrial revolution), are creating new investment opportunities. The rise of smart cities, the potential of fintech, along with the start-up culture, has generated areas where investment potential is exponential but as yet largely untapped," the report said.
It said that industry revolution would impact virtually all sectors of the economies of India and the UK; and growing usage of artificial intelligence, robotics, Internet of Things, blockchain, big data and 3D printing open new opportunities for collaborations and investment in both countries.
Making a case for early negotiations for a free trade agreement, it said that the current business environment in both the countries is conducive for mutual investment relationships.
The report - UK and India bilateral investment relationship - said that a continued focus on ease of doing business will pay more immediate dividends in promoting investments and strengthening economic ties.
"A bilateral investment treaty, which includes provisions to protect and promote foreign direct investment flows, would be a step toward securing the long-term UK-India trade and investment relationship," it added.
Further it stated that UK investment in India's eastern states and in tier 2 cities including Assam, West Bengal, and Telangana are expected to increase in the coming years.