“The significant Indian diaspora here is also believed to have encouraged more Indian companies to look at the UK as their natural home,” said Anuj Chande, Head of South Asia Business Group, Grant Thornton UK LLP – behind the annual India Meets Britain Tracker.
The 2023 edition of the definitive report tracking the footprint of Indian companies operating in the UK marks its 10th anniversary with a record 954 companies – up from 900 in last year’s Tracker. It also found the combined turnover of Indian-owned companies in Britain has more than doubled – from £19 billion in 2014 to £50.5 billion in 2023.
At the report launch in London this week, Chande noted: “The number of Indian-owned companies operating in the UK remained at its highest level over the past 12 months, despite businesses and economies worldwide still feeling the impact of the pandemic. The increase in the number of companies compared to last year alone is remarkable, amidst ongoing operational challenges and rising costs.
“This increasing presence in the UK is reflective of the growing relationship between the two countries, with the past decade witnessing ever deepening ties between India and the UK. Bilateral trade, for example, has more than doubled from £16.4billion in 2013 to £35.9billion in 2022. The UK continues to have an attractive offering for Indian investors with a common business language, access to high quality education and strong brands all contributing to the pull of the UK to Indian business leaders.”
With the ninth round of negotiations on an UK-India free trade agreement (FTA) now complete, the latest research found that the number of Indian-owned companies operating in the UK remained at its highest level over the past 12 months despite businesses and economies worldwide still feeling the impact of the pandemic.
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Lord Dominic Johnson, UK Minister for Investment in the Department for Business and Trade (DBT), who has just returned from a visit to India, called on companies to reach out to the department to further propel this growth story.
He said: “We all agree that now we are on the cusp of something sensational and as a British government minister, I want to be a part of that.
“I want these two free democracies who believe in the values of liberty and human endeavour to come together to truly, by our common partnership, bring a stronger set of economies as one.”
The research also annually identifies the fastest growing Indian companies in the UK each year, measured by those with a turnover of more than £5 million, year-on-year revenue growth of at least 10 per cent and a minimum two-year track record in the UK. Of the 954 companies included in the 2023 research, 79 met the qualifying criteria for appearing in the Tracker – more than double that of 2022 (37).
Indian High Commissioner to the UK Vikram Doraiswami said: “Nobody seems to know that Indian companies are here in such numbers.
“I think we can do better with this. There is an opportunity for us to find verticals in which we can connect the two economies for joint opportunities in which Indian businesses come here to leverage opportunities and take finished products back into the Indian economy.”
The average annual revenue growth rate among the Tracker companies also almost doubled compared to last year (38 per cent) to hit a record high of 71 per cent. The three fastest growing companies in this year’s research by year-on-year revenue growth were: LT Foods International Ltd, growing 807 per cent; St. James Court Taj Hotel, growing 491 per cent; and Reliance Big Entertainment (UK) Private Ltd, growing 364 per cent.
Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), said: “Indian companies are key participants in the UK economy, both in terms of investment and in terms of trade. The 10th Grant Thornton-CII report shows that the UK remains a top market for Indian businesses, against the backdrop of recent global economic developments, and attests to the close economic partnership between the two countries.
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“The rise in participation of Indian companies is a big step forward and we believe that the UK will continue to be a preferred destination for Indian companies seeking opportunities in Europe. This report is an important initiative that reinforces the contribution of Indian companies to the UK economy, in terms of investment and in providing employment. The CII looks forward to the early conclusion of the UK-India free trade agreement, which would take this relationship to the next level and bring significant benefits to both sides.”