Maharashtra, Karnataka, Delhi lead UK's investment inflows from India
What's the story
Maharashtra, Karnataka, and Delhi are leading the way in foreign direct investment (FDI) from India into the UK.
According to a report by the Confederation of Indian Industry (CII) and the High Commission of India in the UK, companies based in Maharashtra accounted for 20% of FDI into the UK in 2023.
Karnataka followed with 12%, and Delhi with 8.6%.
Additional contributors
Other Indian states also contributed
The report also identified Gujarat, Tamil Nadu, Telangana, Uttar Pradesh, Haryana, West Bengal, and Kerala as significant contributors to FDI from India into the UK.
These states collectively make up 78% of total FDI from India into the country.
Vikram Doraiswami, the Indian High Commissioner to the UK commented on this development stating that businesses that are reimagining the India-UK corridor, will realize a shared vision for a secure and sustainable future prosperity.
Leading sectors
IT and software lead sectors for Indian FDI in UK
The report highlighted that the IT and software sector is the leading contributor of FDI from India into the UK.
Other sectors where Indian companies have made significant contributions include automobiles, diagnostics and healthcare, electric car batteries, and technology.
CII Director General Chandrajit Banerjee noted that Indian firms operating in the UK, have integrated themselves into the British economy, enriching it through job creation, investment, diversity, and inclusion.
Economic impact
Indian students, companies boost economy
The report found that new Indian students contributed an estimated £4.3 billion to UK universities, coinciding with a 5% rise in UK student visas last year.
It also highlighted the strong relationship Indian firms have across different UK regions, with the West Midlands, London, and the north-west being top recipients of Indian FDI in software and IT services, automotive, and energy sectors.
This has led to significant job creation and investment in these regions.
Trade growth
UK-India trade sees significant growth
Official data from the UK's Department of Business and Trade revealed that total trade in services and goods between the UK and India, was £39.0 billion in the four quarters to the end of Q4 2023.
This marks an increase of 4.8% or £1.8 billion from four quarters to the end of Q4 2022.
The report also noted that India was the UK's 12th largest trading partner, ushering in 118 new projects and creating over 8,000 jobs.