UK businesses drive growth in India’s economy, contributing over ₹5 trillion in revenue | Mint

New Delhi: British businesses continue to make a significant impact on India’s economic landscape, with 667 UK-owned companies generating ₹5 trillion in revenue and employing over 523,000 people, according to a report. 

The Britain Meets India 2024 report, by Grant Thornton Bharat and the Confederation of Indian Industry (CII). highlights the growing footprint of UK businesses in India.

The report said 162 UK companies surpass an annual revenue of ₹50 crore and achieve at least 10% year-on-year growth. These firms span key sectors such as education, technology and infrastructure, supporting India’s long-term economic and sustainability goals.

India-UK trade has grown from $17.5 billion in fiscal year 2022 (FY22) to $20.36 billion in FY223.

As per the report, Maharashtra has emerged as a major hub for UK businesses, accounting for 36% of all British companies in India. Other key states for British investments are Delhi NCR, Karnataka and Tamil Nadu.

The report reveals that nearly 63% of UK firms in India are micro, small and medium enterprises, with business services, industrial products, media, telecom and technology sectors being the top contributors.

Pallavi Bakhru, partner and head of the India-UK Corridor at Grant Thornton Bharat, emphasized the growth potential for UK companies in India, particularly with the India-UK Free Trade Agreement on the horizon.

“We expect significant opportunities for UK companies, particularly in sectors like renewable energy and climate finance, as we work towards India’s net-zero goals by 2070,” Bakhru said.

The Britain Meets India tracker showcases an impressive growth rate among UK businesses in India. Companies featured in the Growth Tracker reported an average growth rate of 71% in 2024, up from 46% in 2023. This growth was particularly driven by the business services sector, which benefited from India’s skilled workforce and expanding consumer market.

UK biz critical role

The report also underscores the critical role of UK companies in India’s renewable energy sector. British International Investment (BII) has committed $2.2 billion to India, with plans for an additional $1 billion investment by 2026 in climate projects. Meanwhile, Lightsource BP has invested GBP 2 billion in India’s solar energy initiatives.

UK-India partnerships are also growing in the tech and telecom sectors. Recent initiatives, such as the Technology Security Initiative, are driving collaborative research in Open RAN systems and the development of 6G technology, which will strengthen telecom security and infrastructure in both countries, the report highlighted.

Fifteen UK firms in India have reported triple-digit revenue growth in 2024, with Vedanta Ltd leading the pack as the largest UK company by revenue, generating over ₹1,501 billion this year.

“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.