Maharashtra, followed by Karnataka and Delhi, tops the list of Indian states bringing foreign direct investment (FDI) into the UK, according to a new report by the Confederation of Indian Industry (CII) and the High Commission of India in the UK.
The report, "Indian Assets: Charting the Journeys of Indian Companies in the UK," launched in London earlier this week, revealed that companies headquartered in Maharashtra accounted for the highest FDI into the UK at 20% in 2023. Karnataka followed with 12%, and Delhi contributed 8.6%.
Rounding out the top 10 states were Gujarat (7.1%), Tamil Nadu (6.7%), Telangana (6.5%), Uttar Pradesh (5.9%), Haryana (4.5%), West Bengal (3.14%), and Kerala (3.05%). These states collectively made up 78% 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 prosperity,” said Vikram Doraiswami, the Indian High Commissioner to the UK, who launched the report in London.
The analysis indicates that the IT and software sector is the leading field for FDI from India, both in terms of the number of companies and employees. The report also notes the achievements of Indian companies in various UK sectors, including automotive, electric car batteries, diagnostics and healthcare, and technology.
The report also highlights the positive impact of Indian companies on heritage British brands, noting how the value of these legacy brands is retained and protected when acquired by Indian firms.
“Today, Indian companies with operations in the UK have integrated themselves into the British economy, making their mark 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 UK economy 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 contributed an estimated GBP 4.3 billion to UK universities, amidst a 5% increase in UK student visas last year.
The robust relationship between Indian companies and different UK regions is also highlighted, with the West Midlands, London, and the north-west being the top recipients of Indian FDI in the fields of automotive, software and IT services, and energy.
According to the latest data from the UK’s Department of Business and Trade, total trade in goods and services (exports plus imports) between the UK and India reached GBP 39.0 billion in the four quarters ending Q4 2023. This marks an increase of 4.8% or GBP 1.8 billion from the four quarters ending Q4 2022.
India remains the UK’s 12th-largest trading partner and the second-largest source market, bringing in 118 new projects and creating 8,384 jobs.
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