India remains second largest investor in the UK as enhanced trade agreement progresses

India has remained the second largest investor in the UK for another year as revealed in the UK’s Department for International Trade Foreign Direct Investment (FDI) 2021/22 figures. This year saw 107 Indian sourced FDI projects that successfully landed in the UK between financial year 2021-22, which included new investments, mergers & acquisitions, and expansions. These projects created 8,664 new jobs in the UK.

India’s overall contribution to the UK economy is considerable and current trade between the UK and India is worth around £25 billion. In July 2022, the UK and India signed an agreement to officially recognise each other’s higher education qualifications. This will enhance opportunities for Indian nationals to study and work in the UK, with 2020/21 already welcoming almost 85,000 Indian students. This deal is one of several that has shown positive progress towards the final stages of the Enhance Trade Agreement between the UK and India. This is a series of commitments which will create further opportunities and collaboration between the two countries.

Moore Kingston Smith’s India Group has advised many businesses looking to invest in the UK and we are in discussion with many looking to set up in the coming year. Despite the pandemic, we are pleased to see that India has remained high on this year’s UK FDI rankings and expect this to continue.