Grant Thornton today announces the launch of India Tracker 2015. The tracker demonstrates that Indian companies continue to play an important role in the UK economy.
Developed in collaboration with the Confederation of Indian Industry (CII) the Tracker, which monitors fast-growth Indian businesses operating in the UK*, shows that these businesses combined turnover has increased by £3billion in the last year, up from £19billion in 2014 to £22billion in 2015.
UK job creation is also being driven by the successes of Indian businesses in the market. Since last year's India Tracker the number of Indian companies employing people in Britain has increased by 14% (from 700 to 800). The total number of people in the UK employed by Indian companies has increased by 10% (from 100,000 last year to nearly 110,000).
The true value of Indian companies doing business in the UK is highlighted by Grant Thornton's analysis of tax contributions from Indian companies. The research shows that Indian-owned companies pay combined UK corporate tax of almost half a billion pounds - but the total value of tax contributions is considerably higher when additional taxes such as payroll and sales tax are taken into account.
The regional breakdown of the research shows that the fastest-growing Indian companies continue to be fairly evenly spread throughout the UK. They also operate across a variety of sectors, with particular strength in technology and telecoms, pharmaceuticals and chemicals and engineering and manufacturing.
Anuj Chande, Head of South Asia Group at Grant Thornton UK LLP, said:
“The India Tracker shows that the appetite of Indian companies to do business in the UK remains as strong as ever. The UK has reinforced its position as the leading location for Indian investment in Europe.
"The Indian economy appears to be gathering pace as the Modi Government tries to ‘walk the talk’ on key reforms. Its pro-business stance will further encourage many Indian businesses to pursue their global ambitions and Indian investment in the UK is likely to continue to grow as a result.
“This year we expect outbound M&A deals from India to the UK to benefit from a combination of stable government, significant reforms and falling commodity prices. All of this should continue to drive deal activity across all sectors.
“The upcoming UK election will inevitably cause some uncertainty, although we expect this will be short-lived as there is little evidence to suggest that a change of government would have a significant impact on the attitudes of Indian businesses in Britain.”
Shuchita Sonalika, Director and Head of CII UK, adds:
“Indian companies are making tremendous progress in UK, as evidenced by the fact that India invests more in the UK than the rest of the EU combined. We can see Indian companies picking up pace in business activity, as they are now actively scouting for opportunities here. In fact, this has led CII to launch a “RoadtripUK” initiative, renewing its resolve to take business delegations into strongly emerging regions of England, as well to Scotland, Wales and Northern Ireland.
"In terms of overall investment trends, we are seeing much more sector diversity among the Indian businesses that are trying establish or expand operations into UK – pharmaceuticals, manufacturing, automotive, financial services companies are deepening their business footprint, besides well-established IT services. We are also seeing Indian SMEs play a much bigger role in investment and job creation, further contributing to UK economy and society.”
CII promotes bilateral trade and investment flows between Indian and the UK, and through its India Business Forum brings together Indian companies with existing or expected operations in the UK.
Grant Thornton's long-established South Asia Group serves Asian-owned businesses in the UK as well as those investing into and from the Indian subcontinent.