UK businesses contributed seven per cent of all foreign direct investment into India last year as their expenditure grew by $847 million. Research conducted by the CBI, lobby group, and accounting firm Grant Thornton reveals companies based in the country, particularly manufacturers, services providers and retailers, have been increasing their presence in India in the last few years. Britain is the largest western investor in India, with businesses putting in $26 billion into the country in the past 18 years. It's mostly due to the business-friendly policies implemented under Narendra Modi since 2014.
The report titled 'Sterling Assets: Britain Meets India' said about 40 per cent of British companies had made new investments in India last year, creating over 50,000 new jobs. British firms are believed to have created about 423,000 jobs in India since 2000. Shehla Hasan, CBI director for India said, “There's no question that India will be a vital trading partner as the UK charts a new future out the EU”. She said that there was a “golden opportunity” for UK companies thanks to economic reforms that she said made India more attractive to entrepreneurs and established businesses. British investment in India tops that of the United States and the Netherlands that contribute six per cent to the total. It invests more than Germany, which contributes three per cent and France, which represents two per cent.
India's chemical industry has received the largest share of British investment in India since 2000 at $12 billion, followed by the drugs and pharmaceuticals sector, at $8.8 billion, and services, at $7 billion. Mumbai city in Maharashtra has attracted the biggest chunk of British investment since 2000.