More than those from any other country, U.K. businesses are increasingly investing in India. British companies in India now employ almost 800,000 people, representing an impressive one in twenty jobs in India’s organized private sector. Monitoring progress on the Ease of Doing Business in India is therefore important not only for U.K. businesses, but also for India’s wider economy.
Based on an in-depth survey of businesses with a combined turnover of $122 billion, the U.K. India Business Council (UKBIC) Ease of Doing Business Report highlighted the following:
–> 46 percent of U.K. Businesses responding had plans to expand their investments in India in 2019. Moreover 25% of those responding intend to direct this new investment eastwards – seeking new opportunities in states such as West Bengal, Assam, Meghalaya and Manipur.
–> The roll-out of Goods and Services Tax was cited as a contributor to the improved operating environment.
–> More respondents that before thought most progress had been made in the presence of quality infrastructure and telecommunication facilities.
–> 47 percent of respondents cited quick approvals and effective bureaucracy as one of their most important factors when deciding where to invest.
–> Only 25 percent of U.K. businesses saw corruption as a major barrier in 2018, as opposed to 51 percent in 2015. The drive to digitize government interactions was cited as a major reason for this.
Richard Heald, chief executive of UKIBC said, “This report not only highlights the state of the U.K.-India trade and investment relationship, it also underscores the positive steps being taken to make India a valued partner and destination of U.K. businesses. If anything, the improvements in ease of doing business further highlights the scale and geographic range of the opportunities for U.K. businesses within supply chains and across sectors. With BREXIT imminent, India represents an increasingly important and increasingly attractive market.”