INDIA INC. REMAINS U.K. BOUND
India Inc.’s distinct preference for the U.K. was highlighted as Indian companies emerged as the second largest investor in the U.K. in the financial year 2008-09, replacing Japan as the largest Asian supplier of Foreign Direct Investment (FDI) projects and ahead of China by about twice the number.
Indian companies set up 108 new Foreign Direct Investment (FDI) projects during the period, moving up five places when compared to the previous year, creating and safeguarding about 8,000 jobs according to the U.K.’s Department of Trade and Industry.
India’s affinity for the U.K. is marked by its historic ties, similar legal, accounting, finance and judicial systems. The English language and Parliamentary democracy are as Indian as they are English.
The U.K., however, needs to keep its competitive edge vis-à-vis other European countries that are moving aggressively to capitalize on Indian companies’ growth ambitions. Indian FDI in the European Union (E.U.) soared to $3.4 billion (€2.4 billion) in 2008 from zero in 2004, according to Luxembourg-based Eurostat, the EU statistical office.