Indian investments in UK up 321% last year
LONDON: Industry analyses suggest that Indian and other companies have held back on expansion or deferred opening new offices in the UK due to uncertainty over Brexit, but new official figures show that Indian investment was up 321% in the past year.
The figures from the Office for National Statistics show stocks from across Asia have increased by more than 33% in 2017 to £128 billion, and stocks from Japan increased by 71% to £78 billion.
“The greatest growth from any country has come from Indian investors, rising 321% to £8 billion,” the department for International Trade said.
The UK is due to leave the European Union on March 29, 2019. Total trade in goods and services (ie, exports plus imports) between the UK and India was £19.6 billion in year to end 2018 Q2, a 20.0% increase from year to end 2017 Q2. In year to end 2018 Q2, UK exports to India amounted to £7.9 billion (a 27.9% increase from year to end 2017 Q2) while the UK’s imports from India were £11.7 billion (a 15.1% increase from year to end 2017 Q2).
“This means the UK reported a trade deficit with India of £3.8 billion, compared to a trade deficit of £3.9bn in year to end 2017 Q2,” the department said.
Of the UK’s exports to India in year to end 2018 Q2, £5.2 billion (65.7%) were goods and £2.7 billion (34.3%) were services. Of the UK’s imports from India in year to end 2018 Q2, £7.8 billion (66.9%) were goods and £3.9 billion (33.1%) were services.
In year to end 2018 Q2, India was the UK’s 16th largest trading partner (accounting for 1.5% of total trade), the 20th largest export market (accounting for 1.2% of all UK exports), and the 14th largest import market (accounting for 1.8% of all UK imports). International trade secretary Liam Fox said: “As we prepare to leave the EU, foreign investors from around the globe are as confident as ever investing in the UK. “The significant rise in the amount of investment from Asia is evidence that the growing economies are important partners for the UK, relationships which I am committed to developing and deepening.”
Overall, the value of the UK’s FDI stocks increased by £12.6% to £1,337 billion in 2017, compared with the previous year.