12 December 2018
Britain is single largest Western investor into India as President Modi’s business reforms make it easier to do business in a country with a huge domestic market, growing middle class and skilled workforce.
An increase in investments in India has made the UK the largest single Western investor in the country, according to a report compiled by Confederation of British Industry (CBI) and Grant Thornton.
The report, ‘India’s Sterling Assets: Britain Meets India’, published on Tuesday, showed that between 2000-18, total foreign direct investment (FDI) flowing into India from all UK sources stood at an estimated $50.57 billion.
British investment increased by $847 million between 2017-18, representing seven per cent of all FDI in India. The report said that this investment created 52,000 new private sector jobs between 2016-18, bringing the total this century to 422,524.
“The UK is the fourth largest investor in India and remains the largest investor into India outside of South East Asia and Africa. Whilst it is no longer the largest G20 investor in India – Japan narrowly overtook the UK – it is substantially ahead of Germany and France, who only contribute three and two per cent in FDI respectively,” said the CBI.
“The main reasons British firms are attracted to India are the fact it is a huge and growing market with an expanding middle class, the easy availability of talented workers and the Modi government’s ease of doing business policies and reforms, such as the introduction of the Goods and Services Tax.”