London - Maharashtra, Karnataka, and Delhi are the leading Indian states contributing to foreign direct investment (FDI) in the UK, as reported by a collaborative study from the Confederation of Indian Industry (CII) and the High Commission of India in the UK. The report, titled "Indian Assets: Charting the Journeys of Indian Companies in the UK," was unveiled in London and underscores the significant impact of Indian businesses on the UK economy.
According to the report, companies headquartered in Maharashtra accounted for the highest FDI in the UK at 20% in 2023, followed by Karnataka with 12% and Delhi with 8.6%. The top ten states contributing to this investment also include 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%), collectively making up 78% of the total Indian FDI into the UK.
Indian High Commissioner to the UK, Vikram Doraiswami, emphasized the evolving economic ties between India and the UK, noting the potential for businesses to advance a shared vision for a secure and sustainable future. The analysis reveals that the IT and software sector leads in the number of companies and employees, with Indian firms excelling in diverse areas such as automotive, electric car batteries, diagnostics and healthcare, and technology.
The report also highlights the beneficial impact Indian companies have on traditional British brands, maintaining and enhancing their legacy value upon acquisition. Chandrajit Banerjee, Director General of CII, remarked on the integration of Indian companies into the British economy, noting their contributions to job creation, investment, and fostering diversity and inclusion.
Additionally, the report notes that new Indian students have significantly contributed to UK universities, adding an estimated GBP 4.3 billion amid a 5% increase in UK student visas last year. The West Midlands, London, and the northwest are top regions receiving Indian FDI, particularly in automotive, software and IT services, and energy sectors.
The UK's Department of Business and Trade reports that total trade in goods and services between the UK and India reached GBP 39.0 billion in the four quarters leading to Q4 2023, marking a 4.8% increase from the previous year. India ranks as the UK's 12th-largest trading partner and its second-largest source market, with 118 new projects and the creation of 8,384 jobs.