Indian footprint expands in UK despite COVID-19 crisis, finds new 'India Meets Britain Tracker'

Despite the challenges of Brexit and the COVID-19 pandemic, the number of Indian companies operating in the UK and their job creation numbers have increased over the past year, according to the "India Meets Britain Tracker," which was published on Thursday.

According to the 2021 tracker, which is compiled annually by Grant Thornton and the Confederation of Indian Industry (CII) to assess the contribution of Indian companies to the UK economy, the number of Indian businesses operating in the country increased from 842 in the 2020 tracker to 850 in the 2021 tracker, and these businesses employed 116,046 people, up from 110,793 the previous year.

The overall turnover of these businesses was GBP 50.8 billion (US$ 70.47 billion), up from GBP 41.2 billion (US$ 57.16 billion) last year, and 47% of them had at least one woman on their board of directors, compared to 20% in last year's study.

Mr. Lord Gerry Grimstone, UK Minister for Investment, said, “I applaud these results, which indicate that the UK remains a highly desirable destination for Indian investors, who are bringing employment to the country while also rising female representation to record levels.”

He added, “As we rebuild better and stronger from COVID-19, stronger trade relations with India will ensure that more fast-growing companies like Birlasoft and Diligenta have the opportunity to bring employment and development to the UK.”

According to the report, Indian investors continued to invest in the UK in 2020, participating in ten acquisitions – the most of any single EU country – including four in the technology and telecoms industry and two in manufacturing.

Ms. Gaitri Issar Kumar, the Indian High Commissioner to the UK, said, “Despite the pandemic, trade and investment flows between India and the UK remains strong.”

The report also includes a ranking of the fastest-growing Indian-owned businesses in the UK, based on turnover of > GBP 5 million (US$ 6.94 million), YoY sales growth of at least 10%, and a minimum two-year presence in the country.

This year, 49 businesses met the requirements to be included in the tracker, with an overall revenue growth rate of 40%.

Mr. Anuj Chande, Head of South Asia Business Group, Grant Thornton UK LLP, said, “Despite the many challenges of the past year, and as Britain seeks to expand trade and investment relations around the world following Brexit, the long-standing ties between Britain and India seem to be only becoming stronger.”

He added, “According to research, the number of Indian companies operating in the UK has increased, and many of them are still growing rapidly, with some experiencing triple-digit growth.”

 

Technology and telecoms companies dominated the tracker for the eighth year in a row, accounting for 20 of the 49 companies included in the survey.

Birlasoft Solutions is the fastest-growing business on the list, registering 158% revenue growth.

With revenue of GBP 388 million (US$ 538.26 million) and a 62% growth rate, Diligenta, owned by Tata Sons, was the largest company listed.

Although technology and telecoms continue to dominate, the percentage of pharmaceuticals and chemicals companies in the tracker increased dramatically this year, from 15% in 2020 to 27% this year.

Mr. Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), said, “The figures demonstrate how important Indian manufacturing has remained in the UK in terms of maintaining employment and supporting the local economy.”

He added, “As dialogue about the India-UK Enhanced Trade Partnership agreement continue, and countries continue to fight the pandemic, the CII and its members have worked to facilitate an economic recovery path that has been invaluable, and it is thus very promising to see the role our Indian industry has played here in the UK.”

The Tracker also finds that London continues to be the preferred location for fastest-growing companies, with over half (53%) of the fastest-growing Indian companies in this year's report placed in London, indicating the UK capital as their preferred location despite growing interest in other regions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.