BREXIT worries have not dampened the appetite of Indian investors for British business, a report showed today (25).
Data from almost 850 UK-incorporated limited firms of Indian interests showed a significant rise in the contribution to the British economy over the last year.
This year, there are 842 Indian businesses are operating in the UK with combined revenues of almost £48 billion, higher than that of last year’s £46.4 bn, according to the latest annual “India meets Britain Tracker” report.
The 2019 report, published by leading business and financial adviser Grant Thornton UK LLP in association with the Confederation of Indian Industry (CII), provides an overview of the complete landscape of Indian investment into the UK.
It also provides a Tracker of the fastest growing companies, as measured by those with turnover of more than £5m, year-on-year revenue growth of at least 10 per cent and a minimum two-year track-record in the UK.
Indian firms paid a combined total of over £684 million in corporation tax, higher when compared to £360m recorded in the 2018 report.
However, Indian firms employed 104,783 people this year, lower when compared to 104,932 recorded in 2018 report.
Three companies reported growth of more than 100 per cent in this year’s tracker report.
TMT Metal Holdings Limited recorded a growth rate of 649 per cent. This was followed by Route Mobile (UK) Limited, which reported growth of 189 per cent, and BB (UK) Ltd, which achieved turnover growth of almost 129 per cent in 2019 report.
Anuj Chande, partner and head of South Asia Group at Grant Thornton UK LLP said: “…the attraction for Indian investors and families includes factors such as top universities and the opportunity to do business in English.
“The fall in the value of sterling has also had a role to play, making UK assets increasingly attractive to overseas investors. Low rates of corporation tax and the ease of doing business in the UK also remain significant draws.”
Technology and telecommunication firms continue to dominate the tracker report, as they have done since its launch in 2014. This year, they account for 35 per cent of the fastest-growing companies.
Engineering and manufacturing companies were the next in line, accounting for 16 per cent of the 2019 tracker report.
Engineering and manufacturing, followed by pharmaceutical and chemicals firms, account for 15 per cent, continuing historically strong representation.
The geographical spread of the fastest-growing Indian businesses across the UK remains unchanged when compared to the last year.
London continues to be the preferred location for more than half (53 per cent) of the 62 fastest growing Indian companies.
The North and the Midlands rank joint second, accounting for 11 per cent of the companies included in this year’s Tracker, and the South accounts for 10 per cent.
A record number of Indian companies are now based in the UK, employing nearly 105,000 people.