The UK has strengthened its position as the single largest G20
investor in India, and supports close to 800,000 jobs, according to
the CBI’s second Sterling Assets India report,
supported by PwC and the UK India Business Council.
Between 2000 and 2016, the UK invested $24.07 billion
in India – increasing its investment by $1.87 billion between
2015 and 2016 – representing 8% of all foreign direct investment
(FDI) into the country. The UK also managed to see off tough
competition from Japan to remain the largest of all foreign
investors into India after Mauritius and Singapore, and
significantly ahead of the USA.
British business interests in India span a broad
spectrum, both in terms of firms – with several medium-sized
businesses taking their place alongside larger companies to do
successful business – and sectors, with India attracting
investment from industry to services. The chemicals sector
receives the lion’s share of British investment in India at $6.1
billion (25% of UK FDI), followed by drugs and pharmaceuticals at
$4.1 billion (17%) and food processing at $3.2 billion
(14%).
The top reasons British firms invest in India are the
size and growth potential of the market, the easy availability of
talented workers and the stable political system.
The UK also remains the largest job creator in India
via FDI. Between 2000 and 2016, British FDI created 371,000 jobs
– 10% of all jobs created by FDI. The total number of people
employed by British companies in India currently stands at
788,000 – representing 5.3%, or one in twenty, of private sector
jobs.
Carolyn Fairbairn, CBI Director-General,
said:
“It’s really encouraging to see the vibrant economic
relationship between India and the UK continues to
flourish.
“These figures reflect the thriving commercial links
that Britain’s businesses – large and small, and from a whole
host of sectors – have built in India, and which the Prime
Minister saw on her first visit outside the EU.
“From strengthening the UK’s leading position as the
largest G20 investor in India to being the biggest Indian job
creator through direct investment, it’s clear the country is a
magnet for British firms.
“As UK companies grow, they also create jobs and
drive prosperity here at home. So, as new opportunities spring up
in India – from its rapid digitisation to more young people
wanting to study at the UK’s world leading universities – our
firms will be looking to take full advantage. Further reductions
in India’s corporate tax rates and improvements to the ease of
doing business will see the relationship between India and the UK
go from strength to strength.”
Kevin Burrowes, executive board member and
head of clients and markets at PwC UK,
said:
“India offers excellent opportunities for UK
businesses looking to engage in a fast-growing emerging economy.
Building ever closer business ties with India will be critical,
especially at this current time, given the changing global and
European stage.
“It is encouraging to see that confidence among
British and Indian business leaders has increased in comparison
to last year. According to PwC’s latest CEO Survey, 75% of Indian
CEOs are ‘very confident’ about their company’s prospects for
revenue growth over the next three years, compared to 41%
globally, adding to India’s attraction as a place to
invest.”
Rt. Hon. , Chair of the UK India
Business Council, said:
“It is great to see the UK solidifying its place as
the number one G20 investor and job creator in India through
FDI.
“The Indian Government’s efforts to improve the
business environment are clearly bearing fruit, and British
businesses of all sizes and from across sectors have continued to
spread right across this exciting and fast-changing
market.
“The bilateral business relationship is certainly
strong, and it is important to both economies. The fact that
Prime Minister May’s visit to India in November was her first
bilateral destination showed how much India matters to the
UK.
“Indeed, the findings of this report also show how
much the UK matters to India in terms of investment and job
creation. As Prime Minister Modi said, the UK and India are an
“unbeatable combination”.”
UK investment continues to be spread across India,
with significantly more firms choosing to invest in Delhi as of
late. Between April 2015 and September 2016, nearly a quarter
(22.35%) of British investments went to Delhi. The state of
Maharashtra, with the city of Mumbai, attracted the largest share
of British investment (($7.47 billion) between 2000 and
2016.
Sterling Assets India 2 also marks the
start of a series of events between the CBI and the UK India
Business Council, focussing on the future of the UK-India trade
relationship which will take place in both the UK and India over
the next two years.
22 February 2017
Notes to Editors:
Sterling Assets India 2: UK investment creating
Indian jobs provides an overview of the impact of
British-owned business and UK foreign direct investment on the
Indian economy and highlights the commercial impact across
India.
