India and the United Kingdom share a modern partnership bound by strong historical ties. Since 2000, UK has been the largest G20 investor in India, investing $ 22.2 bn. The number of UK businesses in India has more than doubled since 2000, and the range of sectors attracting UK investment has seen strong growth in education, retail, consumer goods, life sciences, healthcare and infrastructure.
Major UK Investors
During PM Narendra Modi’s visit to the UK in Nov 2015, both PMs agreed to hold biennial PM-level Summits to enhance the partnership and agreed on a new Defence and International Security Partnership.
During British PM Theresa May’s visit to India in Nov 2016, the two countries signed agreements pertaining to Ease of Doing Business to share best practices and cooperation in the field of Intellectual Property rights.
In April 2018, both nations decided to launch an India-UK Tech Alliance, set up a UK-India tech hub, enhance UK-India Tech Cluster partnerships, and collaborate on AI and digital healthcare in India’s Health Districts Programme
The UK has consistently been one of the top five investing countries in India over the last 18 years.
Between 2000-2018, investments directly from the UK amounted to $ 26.09 bn representing 7% of total FDI into India, ahead of USA and Germany at 6% and 3%, respectively.
Between April 2000 and June 2018, the UK created 422,524 jobs in India. In the 18 month period between September 2016 and June 2018, UK companies created around 52,000 jobs in India, which reflects a nearly 14% increase in number of jobs over the previous 18 month period.
The UK is the fourth largest investor in India, having invested $ 26.09 bn after Mauritius, Singapore and Japan from April 2000 to June 2018.
South India received a 67% share of UK investments in the 12 months ending August 2018, Karnataka received 38% of UK investments, followed by Maharashtra at 36% and Tamil Nadu at 29%.
Around 79% of UK companies in India are subsidiaries, while 21% work with local partners through joint ventures.
An estimated 56% of UK companies in India are engaging the services sector.
Around 49% of the UK companies export from India. Out of this 49%, 56% or from the manufacturing sector and 44% are from the services sector.
The GT/CBI survey found that the indirect employment generated by the UK companies in India was 419,370 employees. The manufacturing sector had the highest number of indirect employees with 252,400, followed by the services sector (166,120) and trading sector (850).
Around 6% of employees of UK companies in India are women.
Cultural ties between the UK and India extend back to 1600 when East India Company was formed to undertake trade between Tudor England and Mughal India.
Since then, India and the UK have continued to share strong cultural ties, evident by the fact that the Indian diaspora, which totals about 1.5 mn people, is the largest ethnic minority group in the UK
In the last nine years, there have been over 25,000 exchanges between Indian and UK academics, researchers and students through the UKIERI scheme alone.
Further, more than 160,000 Indian students have gained a university education in the UK over the last decade
Scotland has a rich historical connection with Kolkata in particular, as well as a long-standing relationship with Indian artists, chiefly through festivals such as the Rajasthan International Folk Festival, the Edinburgh Festival and Fringe and Celtic Connections
Recently, the Queen of the UK launched the 2017 UK - India Year of Culture
MG Motor India has begun production of the MG Hector at its facility in Halol, Gujarat, ahead of the SUV's global launch. The facility has an 80,000 unit capacity and MG Motor India has put in $.5 bn into this facility so far.
BP plans to invest $ 2 bn in India upstream ventures over next few years. In the past seven years, BP has invested more than $ 8 bn in India, with over $ 7 bn invested in exploration and production. With its partner Reliance Industries (RIL), BP also plans to produce 10% of India’s total gas demand by 2022.
Trent Hypermarket, a 50:50 JV between Tata and British retailer Tesco, plans to open 50 retail stores in Hyderabad in the next 2-3 years apart from setting up a distribution centre. The expansion is part of the 200 stores planned for Mumbai, Pune, Hyderabad and Bengaluru.
Shell India, subsidiary of Royal Dutch Shell acquired 100% of Hazira Port and LNG venture allowing Shell to build an integrated gas value chain: supply from its global LNG portfolio, regasification at the Hazira facility, and downstream customer sales. It further enables Shell to contribute towards India’s long - term need for more and cleaner energy solutions.
British brand Marks & Spencer (M&S) today reaffirmed its commitment to growing its joint venture business with Reliance Retail in India, and expects to continue opening 10 new stores annually. M&S also plans to grow its reach across the country via online fashion platforms.
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