UK Companies Boost India’s Economy with Major Investments
UK businesses are significantly contributing to India’s economic growth. According to the Britain Meets India 2024 report by Grant Thornton Bharat and the Confederation of Indian Industry, 667 UK-owned companies in India generate Rs 5,082 billion in revenue and employ over 523,000 people. The report highlights 162 high-performing firms with annual revenues exceeding Rs 500 million and growth rates of at least 10%.
Key sectors like education, technology, and infrastructure are seeing substantial UK investments, aligning with India’s economic and sustainability goals. Pallavi Bakhru from Grant Thornton Bharat noted the potential growth opportunities with the upcoming India-UK Free Trade Agreement, emphasizing the role of UK businesses in supporting India’s net-zero goals by 2070 through renewable energy and climate finance expertise.
The Growth Tracker shows an average growth rate of 71% for featured companies, up from 46% in 2023. Maharashtra is a major hub for UK businesses, hosting 36% of them, with Delhi NCR, Karnataka, and Tamil Nadu also being popular regions. Nearly 63% of UK firms in India are MSMEs, with business services, industrial products, media, telecom, and technology sectors leading contributions.
UK companies play a crucial role in India’s renewable energy sector. British International Investment has committed USD 2.2 billion to India, with plans for an additional USD 1 billion by 2026 for climate projects. Lightsource BP invested GBP 2 billion in Indian solar initiatives. UK-India partnerships in tech and telecom are growing, with initiatives like the Technology Security Initiative enhancing research in Open RAN systems and 6G development.
Fifteen UK firms in India recorded triple-digit revenue growth this year. Vedanta Ltd. is the largest UK company by revenue, generating over INR 1,501 billion in 2024. Harjinder Kang, His Majesty’s Trade Commissioner for South Asia, highlighted the thriving UK-India partnership, with trade and investment valued at £42 billion and over 700,000 jobs supported across both economies. He emphasized the immense growth potential, with India projected to become the third-largest economy by 2030, driven by a burgeoning middle class.
Doubts Revealed
UK Companies -: These are businesses that are based in the United Kingdom, which is a country in Europe. They are investing money and resources in India to help grow their businesses and the Indian economy.
Rs 5,082 billion -: This is a very large amount of money, specifically 5,082 billion Indian Rupees. It shows how much revenue or money these UK companies are making in India.
Britain Meets India 2024 report -: This is a special report that talks about how businesses from the UK are working and growing in India. It highlights important information about their performance and contributions to the Indian economy.
High-performing firms -: These are companies that are doing really well in their business activities. They are growing fast and making a lot of money, which is good for the economy.
Renewable energy sector -: This is a part of the economy that focuses on creating energy from natural sources like the sun, wind, and water, which are better for the environment.
British International Investment -: This is an organization from the UK that invests money in other countries, including India, to help businesses grow and develop.
Lightsource BP -: This is a company from the UK that focuses on solar energy, which is energy from the sun. They are investing in India to help produce more clean energy.
£42 billion -: This is a huge amount of money, specifically 42 billion British Pounds. It represents the value of the partnership between the UK and India, showing how much they are working together economically.