A new report, India meets Britain Tracker 2018 was launched by Mark Byers of Grant Thornton and HE Y K Sinha, High Commissioner of India in London on 26 th April. The tracker offers latest trends on Indian investment in the UK and is published by Grant Thornton UK LLP in association with the Confederation of Indian Industry (CII).
The report, which monitors Indian businesses operating in the UK with an annual revenue growth of 10% or more, shows that the 87 fastest growing companies achieved an average annual growth rate of 44%, with seven companies seeing turnover growth of more than 100%. This year’s tracker sees an increase of nearly 60% in companies making the list (55 in 2017) and a 13pp increase in annual growth rate (31% 2017) showing the growing strength of Indian businesses operating in the UK. Of the 87 that made the list, 22 featured in last year’s list with one-third of the total number recording a growth rate of over 50%.
Top Sectors
Companies in the technology and telecoms, and pharmaceutics and chemicals sectors have again featured strongly and this year make up 20% and 16% of the list respectively. For the first time, this year, companies from the engineering and manufacturing sector came joint second in the number of companies in the Tracker.
Indian companies and the UK economy
Uncertainty over the outcomes of Brexit negotiations does not appear to have negatively affected Indian companies’ enthusiasm for the UK as an investment destination and around 800 Indian companies are now operating in the UK. Whilst combined turnover (£46.4bn) and employment numbers (105,000) remained stable year-on- year, appetite for investment has risen. The UK attracted four of the top ten largest European deals, as Indian corporates were able to take advantage of up to a 20% fall in the value of the pound against the rupee since the UK’s vote to leave the EU. Moreover, investment by Indian companies in the UK has increased, with capital expenditure (capex) rising from £4.25bn in 2017 to £4.69bn this year.
London
At a time where, in the face of Brexit, there are concerns that companies will leave the city, London has strengthened its dominance as the leading destination for Indian investment in the UK. Of the fastest growing Indian companies, over half are now based in the capital, up from 44% in 2017 and 39% in 2016. Anuj Chande, Head of South Asia Group at Grant Thornton UK LLP, commented, "Indian companies are going from strength to strength in the UK, with this year’s tracker showing a nearly 60% increase in companies making the list. A key factor of their success is that they have established themselves in growing markets where they have the relevant expertise for example, in the technology and telecoms sector and this year, in particular, the engineering and manufacturing sector.
The report clearly shows that the UK remains a highly attractive destination for Indian investors. Following the Brexit vote, the UK economy is in a period of flux as it looks at how to reinvigorate its role as a global trading nation and seeks to forge new trade deals. With India’s growing wealth and increasingly important role on the world stage its position in the Commonwealth is growing, coinciding with the UK’s aims to revitalise trade and investment with Commonwealth countries."
H.E. YK Sinha, High Commissioner of India stated, "The findings of the report demonstrate how well Indian companies are doing in the UK. Equally, UK companies are doing exceedingly well in India."
