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India, 3rd largest investor in the UK

July 05, 2006 17:20 IST

Indian foreign investment into the United Kingdom increased by 110 per cent in 2005-06, British High Commissioner to India, Sir Michael Arthur, announced in New Delhi on Wednesday. During the 2005-06 financial year, the UK recorded a total of 76 investment projects from India, creating 1,449 jobs.

Thanking Indian businesses for their continued commitment to UK-India business relations, Sir Michael said: "With Indian businesses investing £ 1.02 billion into the UK, India now ranks as the third largest foreign investor in the UK globally, and the second largest from the Asia Pacific region."

"The last financial year was yet another record breaker in terms of investment from India into the UK, demonstrating that the UK continues to be the leading investment location in Europe for businesses from India,: he added.

"Having been on the top 10 FDI league table for several years, and now third, shows that success follows success. I encourage Indian companies going global, to continue using the UK as their international base and gateway into Europe. The UK is the place where the world's best companies and entrepreneurs want to be," said Sir Michael.

Releasing the '2005-06 UK Investment Review Report', Mark Dolan, UK Trade & Investment Deputy Director India, Inward Investment, said: "The flow of Indian investment to the UK has turned from a trickle in the late 1990s to a flood, with the scope and breadth of projects rapidly expanding. While ICT remains the dominant sector for investment, there was strong growth in investments in pharmaceuticals and engineering. At the same time, more Indian companies are looking outside London reflecting the deepening of our investment relationship."

"The big rise occurred as a result of Indian investors taking advantage of UK's expertise in high-value activities such as R&D, science, cutting-edge technology, innovative design and as a base for European headquarters. The growth in Indian investment was also driven by the forces of globalisation and market liberalisation as Indian companies ventured abroad for new opportunities, markets and sources of growth, skills and technology," Dolan said.

UK Trade & Investment on Wednesday released its 'UK Inward Investment 2005-06 Report'. In 2005-06, 1,217 foreign companies from around the world chose to invest in the UK -- a 14.3% per cent increase over the previous year. The US, with 446 projects, Japan, with 84 projects, and India, with 76 projects, are the top three investors.

The 76 new projects from India include 39 from Mumbai, 10 from New Delhi, 22 from Bangalore, Chennai and Hyderabad, and 5 from Kolkata. While ICT remains the dominant sector for investment with 26 projects, there was strong growth in investments in pharmaceuticals and healthcare (12 projects), financial services (8 projects) and automotive and engineering (6 projects).

The key projects from India include: