New research from Grant Thornton has explored the significant contribution Indian companies continue to make to the UK economy. The study has found that the contribution has increased in almost every measure compared to the previous year.
A trade deal between the UK and India remains a major priority for the Government, post-Brexit, having named the country as one of the top targets for a free trade agreement in the years to come. Even amid the pandemic, this has seen the UK Prime Minister prioritise forging ties with the rising economic power. To some extent, this strategy is already bearing fruit, as Indian investors have continued to invest in the UK.
According to Grant Thornton, Indian investors were involved in ten acquisitions throughout 2020 – the highest of any non-EU country. This included four deals in the technology and telecoms industry and two in manufacturing. While this is impressive, however, it does not do justice to the deepening bond between the two economies.
Grant Thornton’s annual research into Indian business in the UK has found that there are now 850 Indian companies operating in the UK – rising by eight from its 2020 benchmark. As well as growing in number, they are also significantly boosting their economic contribution to the UK too.
The 850 companies recorded a combined £50.8 billion total turnover in 2021, £9 billion more than they year before, while employing 116,046 people – a rise of almost 6,000. Overall, this saw them pay £459.2 million – though due to the pandemic, this did not expand year-on-year.
As has been the case in all eight of Grant Thornton’s reports into UK-Indian business, technology and telecoms companies dominate the proceedings. Birlasoft Solutions was found to be the fastest-growing company this year, recording 158% revenue growth, while Tata Sons-owned Diligenta was the largest company listed, with revenue of £388 million and a rapid growth rate of 62%. At the same time though, the proportion of pharmaceuticals and chemicals companies featuring in the report increased significantly this year, up to 27% of the total from 15% in the 2020 report.
London remains preferred location for fastest-growing companies. The UK capital has attracted 53% of the fastest-growing Indian companies in Grant Thornton’s study. There is some spread of this though, and the broader South of England was found to be growing in popularity, with the proportion based in this region up by almost half to just over 16%, from 11% in 2020.
Anuj Chande, Head of South Asia Business Group at Grant Thornton, suggested that Brexit will see the long-standing ties between Britain and India deepen in the coming years, driving further such growth. The number of Indian companies operating in the UK has increased and many continue to grow at a rapid rate – something which may play into the economic recovery of the UK.
Chande added, “As the UK government looks to supercharge the economic partnership to support growth, jobs and prosperity, and India continues its journey to becoming one of the world’s largest economies, the ‘living bridge’ between the two countries, formed by more than 1.5 million Indian diaspora living in the UK, will be more important than ever. India is also likely to benefit from the major modifications made to the UK’s immigration policy, with the new point-based system for visas for skilled workers likely to benefit India significantly due to the creation of a more level playing field.”
FAQs
As well as growing in number, they are also significantly boosting their economic contribution to the UK too. The 850 companies recorded a combined £50.8 billion total turnover in 2021, £9 billion more than they year before, while employing 116,046 people – a rise of almost 6,000.
How much do Indians contribute to UK economy? ›
India is the third largest source of Foreign Direct Investment into the UK behind the U.S and France. India is now set to become the world's third largest economy. Working with one of the most productive diaspora communities in the UK who, 6% to the UK's GDP.
Which Indian companies have presence in the UK? ›
Major Indian corporates are present in the UK, prominent amongst them are TATA Group, Vedanta, Infosys, Wipro, HCL, Bharati Global, Kotak Mahindra, TVS motors, EESL, Bharat Forge, Hero, Usha Martin, Appolo Tyres, Reliance Entertainment, ITC infotech, Zensar Technologies, Ranbaxy, Lupin Healthcare, Torrent Pharma, ...
Who are the Indian business owners in the UK? ›
Apart from the Hindujas and Mittal, other high-profile Indian business names in the UK include Lord Karan Bilimoria, founder of Cobra Beer, and Kartar and Tej Lalvani, Chairman and CEO of the UK's largest vitamin company, Vitabiotics.
Can India overtake US economy? ›
India on track to surpass US as second-largest economy by 2040: Report. Over the long term, skill development emerges as a paramount policy area, underscored by the necessity to generate employment for the burgeoning population, bridge the manufacturing pay gap, and ensure the continuous upgrading of workforce skills.
Are Indians the highest earners in the UK? ›
The data, based on median gross hourly earnings between 2012 and 2018, shows that the Chinese ethnicity group is the highest paid, receiving 15.75 pounds an hour in 2018, followed by the Indian ethic group, which earns 13.47 pounds an hour.
Who contributes most to UK economy? ›
In 2022, agriculture contributed around 0.76 percent to the United Kingdom's GDP, 16.68 percent came from the manufacturing industry, and 72.17 percent from the services sector. The vast majority of the UK's GDP is generated by the services sector, and tourism in particular keeps the economy going.
What are the 5 fastest growing Indian companies in the UK? ›
Top 10 fastest-growing Indian companies in the UK
- Reliance Big Entertainment (UK) ...
- Norlake Hospitality. ...
- Royal Enfield UK. ...
- Bird Overseas Holdings. ...
- GH Holdings 1. Global owner: Bharti Overseas. ...
- Sudhir Power (UK) Global Owner: Mr Rahul Seth. ...
- KStrong Holding UK. Global owner: Karam Holding. ...
- Essar Energy. Global owner: Ruia Family.
After World War II. It wasn't until after World War II that curry became so popular in the UK. At this time many South Asians immigrated to Great Britain and brought with them their languages, culture, music and, most influentially, food.
Is India the largest investor in the UK? ›
India is the 2nd largest FDI contributor in the UK. Over 954 Indian companies employing 105,931 people operate in the UK, with combined revenues of ~ $65 Bn, up from 900 companies in 2022.
Reliance Industries, a conglomerate holding company, is the largest company in India by market cap.
How many companies do Indians have in the UK? ›
The number of Indian-owned companies in the UK increased significantly compared to last year alone: from 900 in 2022 to 954 in 2023.
Who allowed British company to trade in India? ›
Jahangir, the fourth Mughal emperor gave permission for trade to the British East India Company.
Which country will be richest in 2100? ›
According to the forecast by Fathom Consulting, Asian economies such as China and India are expected to lead the global economy with the highest GDP share. The report forecasts China to have a share of 22.68% and reach $101 trillion by 2100.
When India will overtake USA? ›
If high growth rates can be sustained, India is expected to overtake the US and become the world's second-largest economy by 2075. Can India sustain a high growth rate? There are two contrasting views on this, optimistic and pessimistic, and both views are well-grounded and backed by hard facts.
Is India is a superpower? ›
Several commentators suggest that India has the potential to become a global superpower, a state with an extensive ability to exert influence or to project power in much of the world. Factors that contribute to a nation acquiring such a status can be economic, political, demographic, military, and cultural.
How much do immigrants contribute to the UK economy? ›
Immigration is estimated to yield £3.3 billion annually for public finances as the UK sees near threefold increase in non-EU immigration since 2018. The latest immigration figures for 2022 showed another steep increase in the number of people coming to the UK.
How much wealth did UK extract from India? ›
Drawing on nearly two centuries of detailed data on tax and trade, Patnaik calculated that Britain drained a total of nearly $45 trillion from India during the period 1765 to 1938.
How much does the UK pay India a year? ›
A decade ago, India was the largest recipient of UK bilateral grant aid, with annual funding peaking at £421m in 2010, but that figure fell to £95m in 2020. A Foreign Office spokesperson said: “Since 2015 the UK has given no financial aid to the government of India.
What percentage of India contributes to world economy? ›
Over the past 10 years the global economy has grown by over 35%. India's share of Global GDP in 2023 was 9.5% once allowances were made for base year and informal economy size. India's data is highlighted in the table below, use the filter and sort order options to allow easy comparison with other countries.
