(Photo : HCILondon-X)

UK businesses are significantly contributing to India's economy, generating ₹5 trillion in revenue and creating over 523,000 jobs, with notable investments in sectors like renewable energy, tech, and infrastructure, said a joint research report. 

According to the Britain Meets India 2024 report by Grant Thornton Bharat and the Confederation of Indian Industry (CII), British businesses are playing a crucial role in shaping India's economic landscape. The report reveals that 667 UK-owned companies in India have collectively generated ₹5 trillion in revenue and provided employment to over 523,000 people, underscoring the expanding presence and influence of UK firms in the country.

High Performing UK Firms in India

The report highlights the growing influence of UK companies in India, pinpointing 162 top-performing firms that meet specific growth standards, including annual revenues exceeding ₹500 million and a minimum of 10% annual growth. Significant UK investments are evident in sectors such as education, technology, and infrastructure, contributing to India's long-term economic development and sustainability goals.

Trade between India and the UK has increased from $17.5 billion in fiscal year 2022 (FY22) to $20.36 billion in FY23. The report notes that Maharashtra has become a key centre for UK businesses, hosting 36% of all British firms operating in India. Other significant states for British investments include Delhi NCR, Karnataka, and Tamil Nadu.

The report highlights the significant contribution of UK companies to India's renewable energy sector. British International Investment (BII) has pledged $2.2 billion to India and aims to invest an additional $1 billion in climate-focused projects by 2026, while Lightsource BP has committed £2 billion to solar energy initiatives in India.

Partnerships between the UK and India in the tech and telecom sectors are expanding, supported by recent efforts such as the Technology Security Initiative, which enhances joint research on Open RAN systems and 6G development, strengthening telecom security and infrastructure. This year, 15 UK companies operating in India achieved triple-digit revenue growth. Vedanta Ltd. emerged as the leading UK firm by revenue, earning over ₹1,501 billion in 2024.

Insights on Future Growth

Pallavi Bakhru, Partner and Head of the India-UK Corridor at Grant Thornton Bharat, said, "With the India-UK Free Trade Agreement on the horizon, we expect significant growth opportunities for UK companies in India.  Our Britain Meets India tracker showcases not only this potential but also the valuable role UK businesses are playing in supporting India's net-zero goals by 2070, particularly through expertise in renewable energy and climate finance."

"The UK-India relationship is a shining example of a thriving partnership, with trade and investment valued at £42 billion, supporting over 700,000 jobs across both economies," said Harjinder Kang, Trade Commissioner for South Asia.

Kang further added: "As we look to the future, the potential for growth is immense, with India projected to have the third-largest economy by 2030 and a burgeoning middle class driving consumer spending. We're poised for a once-in-a-generation revolution in sectors like net zero, AI, healthcare, and life sciences - and together, the UK and India can lead the way."

Bright Future for UK-India Economic Ties

As UK businesses continue to make significant strides in India, the future looks increasingly promising for bilateral trade and investment. With robust partnerships in renewable energy, technology, and infrastructure, both nations are poised to benefit from a stronger, more diversified economic relationship. As India emerges as one of the world's fastest-growing economies, the UK's role as a key partner in this transformation will undoubtedly contribute to the shared prosperity of both nations.