UK Companies Fuel India's Economic Growth: Britain Meets India 2024 Report

The Britain Meets India 2024 report reveals UK's impactful role in India's economy, with 667 UK firms generating Rs 5,082 billion and employing over 523,000 people. Sectors like technology and education see significant UK investments, aiding India's sustainability goals and growth, with Maharashtra emerging as a key investment hub.

UK businesses are proving to be instrumental in India's economic progress, as highlighted by the newly released Britain Meets India 2024 report. Compiled by Grant Thornton Bharat and the Confederation of Indian Industry (CII), it reveals that 667 UK-owned companies are contributing a massive Rs 5,082 billion in revenue and generating employment for over 523,000 individuals. The report not only charts the growing influence of UK firms in India but also spotlights the 162 top performers exceeding an annual revenue of Rs 500 million with at least a 10% year-on-year growth.

Significant UK investments in sectors such as education, technology, and infrastructure are supporting India's long-term economic and sustainability objectives. With the prospect of an India-UK Free Trade Agreement, the growth opportunities for UK businesses in the Indian market look promising. "Our Britain Meets India tracker highlights not only potential growth avenues but also how UK businesses are aiding India in its journey towards meeting net-zero targets by 2070, notably in renewable energy and climate finance," says Pallavi Bakhru of Grant Thornton Bharat.

A notable 71% average growth rate was reported among companies in the Growth Tracker, a substantial rise from the 46% recorded in 2023. The business services sector spearheaded this growth, largely thanks to India's skilled workforce and increasing consumer base. Maharashtra, housing 36% of UK businesses, stands out as a major hub, followed by regions like Delhi NCR, Karnataka, and Tamil Nadu. With nearly 63% of UK firms being MSMEs, contributions from business services, industrial products, media, telecom, and technology sectors are particularly significant.

The report also emphasizes UK's critical contributions to India's renewable energy sector. With British International Investment (BII) committing USD 2.2 billion, and plans for another USD 1 billion by 2026, UK investments bolster India's climate initiatives. Significant partnerships in tech and telecom are also being fostered, enhancing research and development in cutting-edge technologies like Open RAN systems and 6G, thus advancing telecom infrastructure and security.

Fifteen UK companies have marked a triple-digit revenue growth this year, with Vedanta Ltd. leading as the largest UK firm in India by revenue. Harjinder Kang, His Majesty's Trade Commissioner for South Asia, lauds the robust UK-India relationship, which reflects a thriving partnership with a trade and investment value of £42 billion, supporting over 700,000 jobs across both nations.

Looking ahead, India is projected to become the third-largest economy by 2030, fueled by a burgeoning middle class. "We stand on the cusp of a transformative era in key sectors like net zero, AI, healthcare, and life sciences. Together, the UK and India are well-positioned to lead this revolution," Kang concludes.

(With inputs from agencies.)