• Saturday, July 13, 2024

Business

‘Maharashtra leads in FDI from India to UK’

Trade between two nations rose by 4.8 per cent to £39 billion, says report

By: Eastern Eye

MAHARASHTRA, followed by Karnataka and Delhi, are the top three states of India bringing in foreign direct investment (FDI) into the UK, according to a new joint report produced by the Confederation of Indian Industry (CII) and the High Commission of India in the UK.

Indian Assets: Charting the Journeys of Indian Companies in the UK was launched in London last Wednesday (6).

It revealed that companies headquartered in Maharashtra brought in the highest amount of FDI at 20 per cent in 2023, followed by Karnataka (12 per cent) and Delhi (8.6 per cent).

Completing the top 10 tallies are the Gujarat (7.1 per cent), Tamil Nadu (6.7 per cent), Telangana (6.5 per cent), Uttar Pradesh (5.9 per cent), Haryana (4.5 per cent), West Bengal (3.14 per cent), and Kerala (3.05 per cent), making up 78 per cent of the total FDI from India into the UK.

“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,” said Vikram Doraiswami, the Indian High Commissioner to the UK, who launched the report in London.

Its analysis showed IT and software as the leading sector bringing in FDI from India in terms of the number of companies and employees, with Indian companies in the UK contributing to automotive, electric car batteries, diagnostics and healthcare, and technology industries.

The report also highlighted the significant impact of Indian companies on heritage British brands and how the value of these legacy brands is retained and protected when acquired by Indian companies.

“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 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,” said CII director general Chandrajit Banerjee.

Among other findings, new Indian students cumulatively contributed an estimated £4.3 billion to UK universities, with a five per cent increase in UK student visas granted last year.

The report also showcases the relationship that Indian companies have across different UK regions, with the West Midlands, London, and the north-west being the top recipients of Indian FDI in the UK in automotive, software and IT services, and energy sectors.

Latest official data from the UK’s Department of Business and Trade showed that 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 per cent or £1.8bn in current prices from the four quarters to the end of Q4 2022.

India was the UK’s 12th-largest trading partner and the second-largest source market for the UK, bringing in 118 new projects and creating 8,384 jobs.

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