A new report entitled ‘Indian Assets: Charting the Journeys of Indian Companies in the UK’, produced jointly by the Confederation of Indian Industry (CII) and the High Commission of India in the UK was launched by His Excellency Vikram Doraiswami, High Commissioner of India to the UK in London on Wednesday 5 June.
The report highlights the source Indian states from where foreign direct investment (FDI) has been received in the UK. Companies headquartered in Maharashtra brought in the highest amount of FDI into the UK at 20% in 2023. This was followed by Karnataka (12%) and Delhi (8.6%).
Gujarat (7.1%), Tamil Nadu (6.7%), Telangana (6.5%), Uttar Pradesh (5.9%), Haryana (4.5%), West Bengal (3.14%) and Kerala (3.05%) figure in the top ten states from where companies have invested into the UK. These ten states are the sources of about 78% of total Indian FDI in the UK.
As per the CII-HCI London report, the leading sector by number of companies and employees is the Software and IT sector.
According to latest data by the UK’s Department of Business and Trade, total trade in goods and services (exports plus imports) between the UK and India was £39.0 billion in the four quarters to the end of Q4 2023, an increase of 4.8% or £1.8 billion in current prices from the four quarters to the end of Q4 2022. India was the UK’s 12th largest trading partner in the four quarters to the end of Q4 2023 accounting for 2.2% of total UK trade.
In 2023 India was the second largest source market for the UK, bringing in 118 new projects and creating 8,384 jobs.
The report highlights the achievements of key Indian companies in the UK across sectors such as automotives, electric car batteries, diagnostics and healthcare and technology. It also outlines the positive impact Indian companies can have on heritage British brands and how the value of these legacy brands is retained and protected when acquired by Indian companies.
The report showcases the robust relationship that Indian companies have with the UK regions. West Midlands, London and the Northwest are the top recipients of Indian FDI in the UK. Automotive, Software and IT Services and Energy are the top sectors which attracted Indian FDI in these three regions.
According to the report, new Indian students cumulatively contributed an estimated £4.3 billion to UK universities. This is in the backdrop of a 5% increase in UK student visas over 2022 at 133,237.
HE Vikram Doraiswami, High Commissioner of India to the UK said, “As India and the UK continue to evolve and navigate the complexities of a rapidly changing global landscape, I believe that our businesses, reimagining the India-UK Corridor, will realise our shared vision and aspiration for a secure and sustainable future prosperity.
Chandrajit Banerjee, Director General, CII added, “Today, Indian companies with operations in the UK have integrated themselves into the British economy, making their mark in industries in almost all leading sectors. Their ability to adapt, innovate, and forge meaningful partnerships has not only propelled their own growth but has also enriched the economy of the UK and its regions, promoting job creation, driving investment, and fostering a culture of diversity and inclusion.”
