United Kingdom India Investment
India – among top five investors in Britain
As per the U.K. Trade and Investment (U.K.TI) 2012-13 report released by the British Government, India is the fourth largest foreign investor in the U.K.
The top five investor countries in terms of number of investments in the U.K. are the US (396 projects), Japan (113 projects), Italy and France (93 projects each), India (89 projects), and Germany (78 projects). The 89 foreign direct investment projects by India created 7,255 jobs in Britain. As of 2013, 900 Indian companies were registered in the U.K.
Tata Motors, part of the Indian conglomerate the Tata Group, bought British brands Jaguar and Land Rover from its British owners in 2008 for $2.8 billion. Its U.K. manufacturing employs 45,000 people and is the largest Indian employer in the U.K. In a separate transaction Tata Steel purchased Corus, a descendant of the former British Steel.
Also the U.K. is the largest European investor in India, with $17.6 billion investments between 2000 and 2013.
India – second largest investor in London
India is the second largest investor in London after the US, with 28 Indian companies investing in the city. The Indian software major Infosys alone generated 429 jobs in the city.
At a press conference in July 2013 to discuss investments received by the city because of the 2012 Olympics, London Mayor Boris Johnson stated, “The story of Indian investment in Britain is absolutely phenomenal. U.K. is set to become the number 2 car producer in the whole of the European Union, largely thanks to Indian investment in the U.K. That is a fantastic synergy and we are very, very keen to encourage it.”
British Prime Minister woos Indian Investors and Students
Since becoming Prime Minister in May 2010, British Prime Minister David Cameron has visited India thrice, his first visit to India being within months of taking office.
In July 2010, he arrived in India with the largest delegation of British leaders and businesspersons since 1947 (the year India gained independence from Britain) with the aim of driving trade relations. On his second visit in February 2013, he stated that he ‘wanted the U.K. to be India’s partner of choice and that he expected India to be the top three economies in the world by 2030’. During his visits, Prime Minister Cameron has interacted with Indian business and political leaders in Mumbai, Bangalore, Kolkata and New Delhi.
Besides significant trade and investments ties between the two countries, a large number of Indian students studying in colleges and universities in the U.K. contribute to the local economy through payment of student fee and living costs.
Prior to David Cameron’s third visit to India in November’13, the British government abandoned the controversial deposit of £3,000 (approximately $4900) paid by Indian students for a British visa, and declared there would be no limit on the issuance of visas for genuine students.
