Since 2000, the UK has emerged as the largest G20 investor in India, pumping in $22.2 billion as of March 2015, more than 30 per cent of all investments made by G20 economies in India in that period, according to a report by the Confederation of British Industry released on Thursday.
British companies currently employ 691,000 people in India, working out to 5.5 per cent of total organised private sector jobs, and have revenues of $54 billion arising out of operations in the country.
“Britain is the biggest investor in India, and creates the most jobs by any country in India. India as well is the biggest investor in the UK. Everyone has been very enthusiastic about what the UK and India can achieve together, and I’m committed to working with businesses and government in India to grow bilateral trade and investment, generating ever-more great UK-India collaborations,” UK’s Minister for Trade and Investment Lord Maude said during the release of the report titled ‘Sterling Assets India’.
Also speaking at the event, Patricia Hewitt, Chair, UK India Business Council underscored the economic and business relationship between the two countries. “The UK’s economic relations with India are very strong. India invests more in the UK than the rest of the European Union combined. 535 UK companies are making, investing and employing in India, and, famously, an Indian company is now Britain’s largest manufacturing employer,” she said.
The British companies have invested the most in the chemicals sector, pumping in $5.8 billion. As a result, British companies account for a whopping 58 per cent of all jobs created by foreign companies in that sector, or 26,900 jobs.
Other sectors where the UK has invested in a large way include drugs and pharmaceuticals, food processing, services, and petroleum and natural gas.
The report shows that Maharashtra, Delhi, and Tamil Nadu account for the bulk of foreign direct investment into the country, working out to 55 per cent of all FDI into the country in financial year 2014-15.
FDI has so far created the most jobs — 619,300 — in the services sector, followed by the construction sector with 194,100 jobs.
Looking ahead, Lord Maude said that there was substantial excitement in the UK regarding some upcoming reforms in India. “India’s plans for the goods and services tax that will create a single market across the country, and also the land reforms, will create a lot of wealth and jobs in the country,” he said.
“British companies are very excited by GST and will locate their businesses in many more states instead of being restricted to single states once it comes into effect,” said Mukesh Rajani, UK-India Business Group Leader, PwC.
