India-UK ties to scale new heights post-Covid, says report Indian prime minister Narendra Modi
(right) shakes hands with new British prime minister Boris Johnson
A NEW report has revealed that India is likely to be a priority country for the UK post-Covid which will result in an enhanced economic partnership.
The ‘Britain Meets India’ report by the Confederation of Indian Industry(CII) and Grant Thornton Bharat has stated that FDI inflow from the UK to India increased from $898 million in 2015-16 to $1,422m in 2019-20.
According to the report, fastest growing UK companies in India’ includes Dyson Technology, Aviva Life Insurance, Diageo Business Services, RMD Kwikform and FMC Technologies.
Sandeep Chakravorty, joint secretary (Western Europe), ministry of external affairs, said, “Besides a free trade agreement, mobility and an interim trade deal, we are working on a 10-year 360 degree roadmap to strengthen our relationship with the UK. We see investments in India’s clean energy sector coming from the UK.”
Pallavi Joshi Bakhru, Partner and India-UK Corridor leader, Grant Thornton Bharat LLP said, “Our research identified 572 UK companies in India with a combined turnover of around $47 billion, tax payment of around $2.3bn and employing 416,121 people directly. This reflects the important contribution made by the UK companies to the Indian economy as a key ally in India’s growth story.”
The list of ‘top 20 UK companies by revenue’ includes Vedanta, Vodafone, Hindustan Unilever and United Spirits India. Also, G4S Group, Vedanta Resources and HSBC Holdings feature in ‘top UK employers in India’.
Maharashtra is the leading investment destination for UK companies in India followed by Haryana, Delhi, Tamil Nadu, Telangana and Karnataka.
Gaitri Issar Kumar, high commissioner of India to UK, said, “The governments of both India and the UK are committed to an enhanced trade partnership. We are developing a roadmap to a free trade agreement with an ambitious target of £100bn by 2030.”
Alex Ellis CMG, High Commissioner of UK to India, noted, “Both India and the UK must think about coming together to create a global impact. Both the economies will have to create a lot of jobs in the next decade and build back in a more sustainable way.”
The report analysed companies with an annual turnover of more than $6.9m, with an yearly revenue growth of at least 10 per cent and a minimum two-year track record of filings with the ministry of corporate affairs in India, a statement said.