Revenue generated by UK-owned businesses in India hits $60 bn

Companies in India owned or controlled by entities based in the United Kingdom have surpassed a collective turnover of about Rs5.08 trillion ($60 billion), a report said.

Of the total 667 such companies employing 523,460 people, 162 generated annual revenues exceeding Rs50 crore, with a year-on-year growth of at least 10%, the report, titled ‘Britain Meets India 2024,’ said.  The report classified these “high-performing companies” under a ‘Growth Tracker’ list.

Published by the Indian arm of professional services firm Grant Thorton and the Confederation of Indian Industry (CII), the fourth edition of the report listed companies that have a minimum two-year track record of filing with India’s ministry of corporate affairs.

More than 15 companies in the list have achieved triple-digit increases in turnover, with Vedanta Ltd, the largest UK company in India by revenue, generating over ₹1,501 billion ($17.75 billion) in revenue, the report showed.

British companies are mostly present in education, technology, and infrastructure sectors, supporting India’s long-term economic and sustainability goals, the report said, adding that India-UK trade has grown to $20.36 billion last year, up from $17.5 billion in 2017.

Pointing to the increasing number of British companies in India, Pallavi Bakhru, partner and head of the India-UK Corridor at Grant Thornton Bharat, said, “In an impressive upward trend, the average growth rate of companies within the Growth Tracker reached 71%, up from 46% in 2023.”

Once the India-UK Free Trade Agreement comes to fruition, British companies operating in India can expect significant growth opportunities, Bakhru said.

“Our Britain Meets India tracker showcases not only this potential but also the valuable role UK businesses play in supporting India’s net-zero goals by 2070, particularly through expertise in renewable energy and climate finance,” she added.

Maharashtra hosts 36% of UK companies operating out of India, with Delhi-NCR, Karnataka, and Tamil Nadu also emerging as major hubs, the report said.

Micro, small, and medium-sized enterprises (MSMEs) make up 63% of UK businesses in India. MSMEs in the business services sector contributed 24.4% of the combined turnover of micro and small enterprises. Other prominent sectors include industrial products (16.4%), media and telecom (13.6%), technology (12.4%), and financial services (6.5%).

“The UK-India relationship is a shining example of a thriving partnership, with trade and investment valued at £42 billion and over 700,000 million jobs supported across both economies,” she added.

The report also examined the steady outbound investment flow from India to the UK, with recent high-value deals such as Bharti Global’s $4 billion investment in British Telecom Group.

Harjinder Kang, trade commissioner for South Asia and deputy high commissioner for Western India, said, “With UK-led projects in India’s renewable energy sector, both the countries share a partnership in climate action, including a £2 billion commitment to solar initiatives by Lightsource BP and $89 million in clean energy from British International Investment (BII).”

The report said British International Investment manages a $2.2 billion portfolio in India and plans to invest an additional $1 billion in climate projects by 2026.

Kang added that these collaborative efforts represent a significant step forward in supporting India’s net-zero ambitions, reinforcing the UK’s position as a vital partner in India’s sustainable transition.