by AMIT ROY
A BRITISH minister has welcomed Indian investment in the UK, in contrast to the security concerns expressed about the entry of Huawei, the Chinese telecommunications giant, into Britain.
The latter has been given permission by prime minister Theresa May’s government to help set up the UK’s new 5G network, leading to widespread fears that such access will allow the Chinese complete freedom to gather intelligence.
In marked contrast, the UK’s minister for investment, Graham Stuart, parliamentary under-secretary in the Department for International Trade, told a business meeting in London last Wednesday (24): “I want to say on behalf of the UK government, we will always welcome Indian investment.”
He was commenting on the release of the 2019 tracker report by the global accountancy and professional services firm, Grant Thornton, on the impressive performance of Indian companies in the UK.
The report, the most authoritative of its kind, revealed that “Brexit uncertainty has not dampened the appetite of Indian investors for British business”.
It said: “There are now a record 842 Indian companies operating in the UK, up from about 800 in the previous year, with combined revenues of almost £48 billion (£46.4bn in 2018 report).
“Indian companies paid a combined total of over £684 million in corporation tax, which is almost double the amount recorded in last year’s report (£360m) and (they also) employed 104,783 people (104,932 in 2018 report).”
The report was released by Anuj Chande, partner and head of the south Asia group at Grant Thornton UK, who said the tracker dealt only with Indian companies that had set up independent subsidiaries in the UK.
This figure of 104,783 jobs created “excludes many Indian companies who operate through branches for various commercial and tax considerations. With most of the IT companies – if you totalled up their employment – it would be 30,000 additional people,” Chande said.
If data from all Indian companies operating through branches was taken into account, the number of jobs created would be “significant”, he added. Stuart spoke of the “phenomenal engagement and frank and open discussion on both sides leading to the positive outcomes we have been able to celebrate.
“The tracker makes welcome reading and the headline figures are startling. Some companies are growing by 100 per cent year on year – absolutely remarkable.”
Stuart emphasised: “We recognise India is important as one of our most critical bilateral investors – the figures are fantastic. As minister for investment, all I can do is celebrate them.”
He also pointed out: “The tracker shows how over a third of Indian businesses operating in the UK are from the tech sector, creating 33,000 jobs at least, while the UK in return exported £356m of digital services to India last year. With such stellar growth we need to work together.”
Despite such enthusiasm, however, compared with the generous attitude towards China on the question of visas for tourists, business visitors and students, the UK government continues to be much tougher with India.
India’s high commissioner in London, Ruchi Ghanashyam, took an indirect dig at what is now referred to as the hostile environment that the British prime minister created for immigrants when she was home secretary for six years: “A time may come when I might not have to gripe about the visa issue.”
She added: “The report brings out in such graphic terms the contribution that Indian industry and Indian businesses and Indian enterprise are making to UK.”
The UK-India business engagement is now so close that Chandrajit Banerjee, director general of the Confederation of Indian Industry (CII), told the meeting: “For us this is a home coming. I was here just a few weeks back. I keep coming here every alternate month or more.”
The event also saw awards presented to the fastest growing companies across various sectors. They included Top Employer in the UK (Tata Motors); Fastest Growing Company (with a minimum turnover of £5m) (TMT Metal Holdings); Consistently Growing Company from 2014 (Accord Healthcare); Consistently Growing Company from 2014 (Milpharm); Consistently Growing Company from 2014 (Secure Meters UK); Fastest
Growing New Entrant (Dhoot Transmission UK); Fastest Growing Technology Company (Route Mobile UK); Fastest Growing Pharma & Chemical Company (Milpharm); and Fastest Growing Financial Services Company (Union Bank of India UK).
Lakshmi Kaul, the CII’s head and representative in the UK, stressed: “The UK remains a highly attractive destination for Indian investors… the country provides an excellent environment for longterm business.”
This was borne out at a personal level by TMT’s representative in London. Manish Parmar, 24, told Eastern Eye why he, a single man, now wanted to settle in the UK. “I have been here a year. I used to live in Ahmedabad where in summer the temperature goes beyond 40C. I like life here, especially the weather.”
