• Thursday, July 25, 2024

Business

Which Indian states make most FDI in UK? Joint CII, mission report finds out

Indian high commissioner Vikram Doraiswami unveiled the report in London titled ‘Indian Assets: Charting the Journeys of Indian Companies in the UK’ that tracks origins of Indian FDI into the UK.

Indian high commissioner to the UK Vikram Doraiswami (third from left) launches the CII ‘Indian Assets’ report at Warwick Business School at the Shard in London on June 5, 2024. (Picture: CII)

By: Shubham Ghosh

THE Indian high commissioner to the UK, Vikram Doraiswami, on Wednesday (5) unveiled in London a report produced jointly by the Confederation of Indian Industry (CII) and the Indian high commission on those states in the South Asian country from where foreign direct investment (FDI) has been received in the UK.

The report is titled ‘Indian Assets: Charting the Journeys of Indian Companies in the UK’ and its launch ceremony at Warwick Business School at the Shard was attended by a number of dignitaries.

The report said companies headquartered in the western Indian state of Maharashtra, which is also known to be the most developed in the country, accounted for 20 per cent FDI inflows into the UK in 2023, the highest. The southern state of Karnataka followed next with 12 per cent while Delhi was at three at 8.6 per cent.

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Gujarat, the home state of Indian prime minister Narendra Modi who won his third successive mandate on Tuesday (4), was fourth in the list with 7.1 per cent. The remaining six that completed the top 10 Indian states from which companies have invested in the UK were 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).

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These states accounted for about 78 per cent of total Indian FDI in the UK. It may be mentioned here that India is the second-largest investor in the UK.

According to the report, software and information technology was the leading sector in terms of number of companies and employed personnel that invested in the UK.

As per the latest data by the UK’s department of business and trade, total trade in goods and services (exports plus imports) between the UK and India was £39 billion in the four quarters to the end of Q4 2023, a rise of 4.8 per cent or £1.8 billion in current prices from the four quarters till the end of Q4 2022.

India was the UK’s 12th largest trading partner in the four quarters when Q4 2023 concluded, accounting for 2.2 per cent of total UK trade.

Last year, India was the second-largest source market for the UK, bringing in 118 new projects and creating more than 8,300 jobs.

The report also highlighted achievements of key Indian companies in the UK — across sectors such as automotives, electric car batteries, diagnostics and healthcare and technology.

It outlined the positive impact Indian companies can have on heritage British brands and how the value of these legacy brands is retained and protected when acquired by Indian companies.

The report also showcased the robust relationship that Indian companies have with UK’s regions. While West Midlands, London and the Northwest remain the top recipients of Indian FDI in the UK, automotive, software and IT services and energy are top sectors that attracted Indian FDI in these three regions.

The findings revealed that new Indian students cumulatively contributed an estimated £4.3 billion to UK universities. This is in the backdrop of a five per cent rise in UK student visas over 2022 at 133,237.

“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 prosperity,” Doraiswami said at the report-launching event.

Chandrajit Banerjee, director general of CII, which works to create and sustain an environment conducive to the development of India, partnering industry, government and civil society, through advisory and consultative processes, said, “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 own 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.”

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