The UK on Wednesday celebrated recent investment gains worth over GBP 100 million from Indian companies and pointed to India’s insurance sector as a growth opportunity for British companies after the resumption of free trade agreement (FTA) talks this week. As Business and Trade Secretary Jonathan Reynolds wrapped up a two-day visit to New Delhi after holding talks with his Indian counterpart, Union Commerce and Industry Minister Piyush Goyal, the UK’s Department of Business and Trade (DBT) said recent Indian investments are expected to create hundreds of new jobs over the next three years.
The investments are said to cover a range of sectors including artificial intelligence (AI), professional services and textiles, with UK insurers “seeking further potential to expand thanks to the Indian Budget earlier this month”, which increased the amount of foreign direct investment (FDI) allowed in the sector from 74 per cent to 100 per cent.
“These investment deals will deliver over GBP 100 million to the UK economy, creating jobs, boosting growth and supporting working people,” Reynolds said.
“I am proud that the government’s support has helped some of our best businesses in these sectors expand into the exciting Indian market. It is great to see them go for growth, and their successes will be worth millions of pounds to the UK economy, improving living standards and putting money in people’s pockets,” Reynolds added.
Recent Indian investments flagged by DBT include Aaseya Technologies, a professional services company specialising in digital transformation through automation, a GBP 25 million investment in Manchester to expand the company’s robotics innovation and development, and an GBP 8 million investment in Sastra Robotics.
They also include University Living, a global student housing management marketplace, which is investing £10 million to open a UK office, and Test Yantra, a testing and training services company, which is investing £10 million.
On the other side of the two-way investment flows, UK businesses that have expanded their exports include Shipley-based Radio Design setting up a manufacturing facility in India; London-based Marcus Evans Group setting up a Mumbai base; Leicester-based chemicals company Microfresh launching smart antimicrobial technology across several Indian textile and leather manufacturers; And Novocuris, headquartered in London, is in operation in multiple Indian hospitals.
Meanwhile, UK Investment Minister Poppy Gustafsson visited Bangalore this week as part of her two-city tour to cover Mumbai to “beat the drum for Britain, champion free trade and promote attractive investment opportunities in the UK economy”.
According to official figures, UK businesses exported a total of £17 billion in goods and services to India in the 12 months to September 2024, while Indian FDI stock from India increased by 28 per cent at the end of 2023, making India the UK’s second-largest investor by number of projects for the fifth consecutive year.
The DBT added: “A trade deal that reduces barriers can make it easier and cheaper for businesses to sell to this huge market and deliver on the government’s ‘transformation plan’.”
“India, already an economic burden, is expected to become the fourth largest importer by 2035, presenting new opportunities for UK businesses.”
