The report states that technology stands out as the leading sector for the 635 United Kingdom (UK) companies in India
A total of 68 per cent of 635 United Kingdom (UK) companies in India are micro, small and medium enterprises (MSMEs), with 60 per cent having their parent headquartered in London, according to a joint report released by Grant Thornton Bharat and the Confederation of Indian Industry (CII) on Monday.
In India, MSMEs form the cornerstone of the Indian economy. The sector has protected the domestic economy from global adversities and shocks. It is estimated that there are 633.9 lakh MSMEs in India. Around 324.9 lakh enterprises (52.3 per cent of total MSMEs) are in rural areas, while 309 lakh enterprises (48.8 per cent) are in urban areas.
The Britain Meets India (BMI) 2023 report identified the fastest-growing UK businesses operating in India, ranked by growth and employment generated. It stated that the technology sector is the dominant force among 635 United Kingdom (UK) companies operating in India.
Supported by the UK government’s Department for Business and Trade (DBT), the report stated, “This trend aligns with the growth of Global Capability Centres (GCCs) across India, making it a hub for large UK retail giants,” it stated. India’s reputation for innovation and a skilled workforce of coders, engineers, and software developers have contributed to its appeal as a GCC hub.
In recent years, the UK-India economic partnership has strengthened significantly, resulting in increased trade and investment flows. The report underscored the potential of the India-UK relationship, especially in sectors such as defence, infrastructure, clean energy, health, technology and innovation.
Notably, the report noted that the India-UK Free Trade Agreement (FTA) has the potential to further strengthen bilateral ties and boost economic prosperity for both nations. The government’s efforts to improve infrastructure and ease of doing business in India have enhanced the country’s appeal as a GCC hub.
Pallavi Joshi Bakhru, Partner and India-UK Corridor Leader, Grant Thornton Bharat said, “With the India-UK FTA having the potential to further strengthen bilateral partnership and boost economic prosperity on both sides, the BMI report offers clean insights into the business camaraderie that exists between the two nations.”
Deepak Shetty, CEO and Managing Director of JCB India and Chairman, CII Infrastructure Council said that an FTA would certainly provide a fillip to this already strong bond, and CII looks forward to the early completion of the negotiations.