Brexit worries may have caused uncertainty in the political economy of the UK but it has not dampened the appetite of Indian investors in the UK market, a recent report tracking Indian investments in the UK has indicated.
On 24th April, Wednesday, the launch of the annual 'India Meets Britain Tracker' report has revealed that from 800 companies who were doing business in the UK in 2018, the number of these Indian companies has jumped to 842 in 2019. According to the same report these companies have also helped in boosting the British economy over the last year with a combined turnover increasing from £46.4 bn in 2018 to £48 bn this year.
The report published by financial adviser Grant Thornton UK LLP in association with the Confederation of Indian Industry (CII), was launched in the presence of Her Excellency Mrs. Ruchi Ghanashyam, High Commissioner of India to the UK, Rt Hon Graham Stuart, UK Minister for Investment, Lord Ashton, Parliamentary Under Secretary of state for Department for Culture, Media & Sport, Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry, along with other Members of Parliament, Peers and Indian Company Heads of UK & Europe.
"The headline figures in the Tracker are startling and they show the phenomenonal engagement and frank and open discussion that exists on both sides. They are testament to the strength and entrepreneurialism of the Indian business community, with some companies growing by more than 100 per cent year on year. We recognise that India is important as one of our most critical bilateral investors," said UK minister for investment Rt Hon Graham Stuart.
The minister also took the platform to even speak about the expected drop in the corporation tax to 17% next year and how this remains one of the reasons for London to remain the biggest investment market. Indian firms paid a combined total of over £684 million in corporation tax, higher when compared to £360m recorded in the 2018 report. However, Indian firms employed 104,783 people this year, lower when compared to 104,932 recorded in 2018 report. Three companies reported growth of more than 100% in this year’s tracker report.
TMT Metal Holdings Limited recorded a phenomenal growth rate of 649%, followed by Route Mobile (UK) Limited, at 189% growth, and BB (UK) Ltd, at turnover growth of almost 129%.
The report also provides a Tracker of the fastest growing companies, as measured by those with turnover of more than £5m, year-on-year revenue growth of at least 10% and a minimum two-year track-record in the UK. But surrounding the issue of diversity, the report has also highlighted that 24% Indian companies in the UK have at least one woman on their board as opposed to 19% of these companies last year.
“We all wondered how the Brexit process would have affected the investment sentiment from India and now we have the answer – Indian business retains its positive outlook towards the UK," said Ruchi Ghanashyam, the Indian High Commissioner to the UK.
Technology and telecommunication firms continue to dominate the tracker report, as they have done since its launch in 2014 with 35% of them accounting for the fastest-growing companies. Engineering and manufacturing, followed by pharmaceutical and chemicals firms, account for 15%, continuing historically strong representation.
“The fall in the value of sterling has 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.” said, Anuj Chande, head of South Asia Group at Grant Thornton UK LLP.
The evening also witnessed an awards ceremony alongside the Tracker launch, wherein TMT bagged the award for the Fastest Growing Company for the year and Route Mobile won the award in the tech category. Tata Motors Limited was named the Top Employer in the UK, employing over 43,000 people, and Union Bank of India received the award for the Fastest Growing Financial Services Company. This report further highlights that London continues to be the preferred location for 53% of the 62 fastest growing Indian companies.
For more information on the report visit: https://www.grantthornton.co.uk/globalassets/1.-member-firms/united-kingdom/pdf/documents/india-meets-britain-tracker-2019.pdf
