UK secures over $125.8 mn in Indian investment, boosts trade talks

The UK has secured over £100 million (~$125.8 million) in new investments from Indian companies, reinforcing the government's ‘Plan for Change’ as a catalyst for global investor confidence.

The announcement coincides with UK Trade Secretary Jonathan Reynolds' visit to New Delhi, where the government has relaunched trade deal negotiations with India to create more opportunities for UK businesses and drive economic growth.

Investment Minister Poppy Gustafsson was also in India, visiting Bengaluru to advocate for Britain, champion free trade, and promote investment in the UK economy. The latest Indian investments span various sectors, including artificial intelligence (AI), professional services, and textiles, and are expected to generate hundreds of jobs over the next three years, the Department for Business and Trade and the Rt Hon Jonathan Reynolds MP said in a joint press release.

This development continues a strong trend of Indian investment in the UK. The most recent figures show a 28 per cent increase in the value of inward foreign direct investment (FDI) stock from India at the end of 2023. India has remained the second-largest investor in terms of project numbers in the UK for five consecutive years.

The deals come alongside positive news for UK insurance firms, which now have greater expansion opportunities in India following the Indian government’s decision to raise the cap on FDI in the insurance sector from 74 per cent to 100 per cent.

Among the significant investments, Jaipur Rugs, one of India’s largest producers of hand-knotted rugs, has opened a store in London. The company plans to create 75 jobs through a £5 million (~$6.3 million) investment over the next three years.

In addition to inward investment, UK companies in the tech and life sciences sectors are making notable strides in global markets, announcing major expansions in India.

“These investment deals will deliver more than £100 million for the UK economy, creating jobs, strengthening growth, and helping working people. They prove that the government’s Plan for Change is giving Indian businesses the confidence they need to continue investing in Britain. Now the UK will strive to be more ambitious and collaborative than ever before as we show the world why the UK is the best place to invest,” said business and trade secretary Jonathan Reynolds.

With India projected to become the fourth-largest importer by 2035, new opportunities for UK businesses are emerging. In the year leading up to September 2024, UK businesses exported £17 billion worth of goods and services to India, underscoring the strength of bilateral trade relations.

ALCHEMPro News Desk (HU)