The Upswing

The UK-India merchandize trade grew by 26 percent in Jan-April 2008 compared to Jan-April 2007. While UK exports to India stood at £ 1109 million, imports from India stood at £ 1511 million. The UK-India trade in 2007 stood at £ 6737 million which was £ 906 million in  2006.

Major items of UK's exports to India include Metalliferous ores and metal scrap, non-metallic mineral manufactures, petroleum, petroleum products & related materials, power generating machinery and equipment, machinery specialized for particular industries, general industrial machinery and equipment, transport equipment. major items of imports from India include Textile yarn and fabrics, petroleum and petroleum products, medicinal & pharmaceutical products, general industrial machinery & equipment, manufactures of metal not elsewhere specified, electrical machinery, apparatus and appliances, articles of apparel and clothing accessories, footwear, miscellaneous manufactured article

INDIA IN MAIN LEAGUE OF INVESTORS IN THE UK

The annual inward investment results for 2007-8 showcase another highly successful year for the UK, with a record 1,573 investment projects won in what marks a fifth consecutive year of growth.

During the past financial year, foreign companies from around the world chose to invest in 1,573 projects in the UK – a 10 per cent increase from the previous year. The investment rate is significantly higher than previous years, with 42 per cent new investments and 28 per cent expansion projects.

Investment from Asia Pacific grew at more than double the global rate, rising 25 percent to 415 companies deciding to locate or expand in the UK, which is the highest level on record.

Investment into the UK continued to grow from Japan, India and China with 102, 75 and 59 projects respectively.

Jane Owen, Director, UK Trade and Investment, India said:

"India continues to share a strong business relationship with UK. The results show 75 projects from India with well over 19,000 associated jobs.

"Indian investors recognise the UK’s favourable conditions including the pro-business environment and open regulatory framework.

"There are huge opportunities for Indian companies to build partnerships and gain from transfer of knowledge and technology, particularly through R&D investments in the UK."

The London Stock Exchange hosts 52 Indian companies, with a combined market cap of £9 billion. Indian firms have raised a total of £3 billion through listings on the exchange.

The Tata group has invested in the UK to increase the size and scale of its steel business (with the Corus acquisition during 2006-7 financial year) and during the last financial year purchased two luxury car brands, Jaguar and Land Rover, in a deal worth £1.15 billion.

Other highlights of the "UK Inward Investment 2007-8" report include:

* Total projects up 10 per cent from 1,431 to 1,573.

* 45,051 new jobs created and a further 58,488 safeguarded, bringing the total number of associated jobs to 103,539 (up 32 per cent).

* 653 (42 per cent) of the total were new projects and 436 (28 per cent) were expansions by existing investors.

* R&D operations increased by 83 per cent to 251 projects; with high value and R&D intensive projects representing two thirds of the total

* Advanced Engineering projects rose by 61 per cent to 182 projects

* Environmental Technologies projects increased by 22 per cent to 59

* The US remains our biggest investor - representing some 30% of the total investment projects, and almost 30,000 new and safeguarded jobs

(Source: Press release issued by the British High Commission, New Delhi, India. UK Inward Investment report 2007-8 released by UK Trade and Investment on July 2, 2008)
 

Indo-British Trade (2008)
(In £ million)