The latest India meets Britain Tracker report has revealed a rise in the level of Indian investment being ploughed into UK-based businesses.
The annual report, published by Grant Thornton UK in association with the Confederation of Indian Industry (CII), analysed data from almost 850 UK-incorporated limited companies that are either directly or indirectly owned or controlled by an Indian-incorporated parent, or by an Indian citizen resident outside the UK.
The report’s authors noted a record 842 Indian companies operating in the UK, up from about 800 the previous year, reporting combined revenues of almost £48 billion (2018: £46.4 billion).
These firms paid a combined total of over £684 million in corporation tax, almost double the amount recorded in last year’s report (£360 million). The number of people employed by Indian companies in the UK remained level at 104,783 (2018: 104,932).
Anuj Chande, partner and head of South Asia Group at Grant Thornton UK, said: “This year’s report shows the continued importance of the contribution that Indian companies make to the UK economy. This investment creates jobs, contributes tax and plays an important role in extending the long-standing ties between India and the UK.
“Given the continuing uncertainty driven by the UK’s exit from the EU, it is encouraging to see that Indian investors continue to invest confidently in the UK and in fact, there are now more Indian businesses active in the UK than ever before.
“The attraction for Indian investors and families includes factors such as top universities and the opportunity to do business in English. The fall in the value of sterling has also had a role to play, making UK assets increasingly attractive to overseas investors. Low rates of corporation tax and the ease of doing business in the UK also remain significant draws.”
62 companies record average growth of 37%
The 2019 India meets Britain Tracker report also monitored the growth of Indian companies with a turnover of more than £5 million, year-on-year revenue growth of at least 10 per cent and a minimum two-year track-record in the UK.
A total of 62 companies recorded an average growth rate of 37 per cent, while three registered growth of more than 100 per cent – TMT Metal Holdings Limited (649%), Route Mobile (UK) Limited (189%) and BB (UK) Ltd (129%).
London remains the preferred location for more than half of the 62 fastest growing Indian companies. The North and the Midlands took second place, accounting for 11 per cent of the companies included in this year’s Tracker.
Lakshmi Kaul, head and representative – UK, CII, added: “The UK remains a highly attractive destination for Indian investors. The most successful Indian businesses look at their UK investments from a long-term perspective and not for short-term gains.
“As India’s economy continues to grow, Indian companies will increasingly have greater choice over where to invest and the UK must ensure that, beyond Brexit, it remains a leading investment destination. But the foundations for a mutually beneficial relationship between India and the UK are clearly already in place. The two countries have much to offer each other and, by committing to re-forge their historic relationship, they can move forward together towards a prosperous future.”
Awards were presented to the fastest-growing companies across a variety of industry sectors:
- Top Employer in the UK – Tata Motors Limited
- Fastest Growing Company (with a minimum turnover of 5m) – TMT Metal Holdings Limited
- Consistently Growing Company from 2014 – Accord Healthcare Limited
- Consistently Growing Company from 2014 – Milpharm Limited
- Consistently Growing Company from 2014 – Secure Meters (UK) Limited
- Fastest Growing New Entrant – Dhoot Transmission (UK) Limited
- Fastest Growing Technology Company – Route Mobile (UK) Limited
- Fastest Growing Pharma & Chemical Company – Milpharm Limited
- Fastest Growing Financial Services Company – Union Bank of India (UK) Limited