UK tops list of number of jobs created by G20 nations
The UK is the single largest G20 investor into India, supporting nearly 700,000 jobs, according to the CBI’s first Sterling assets India report, sponsored by PwC UK and in association with the UK India Business Council.
Between 2000 and 2015, the UK invested $22.2 billion into India – 9% of all foreign direct investment (FDI) in the country. This was ahead of the USA and Japan, and substantially ahead of other European G20 nations. Indeed, it makes the UK the largest foreign investor into India after Singapore and Mauritius.
The UK directly creates more jobs in India than any other G20 nation. British direct investments generate more than 137,000 jobs, nearly 7% of jobs generated by FDI in India. The UK is a close second (after the USA) in generating service sector jobs in India, with an estimated 43,000 positions created. In total, British companies in India are estimated to employ 691,000 people – through directly created jobs and joint ventures with Indian and other firms – representing 5.5% of the organised private sector workforce in the country.
UK firms spend around 4.4% on corporate social responsibility programmes, more than double the 2% required by the Indian government in the Companies Act of 2013. Beyond just financial investment, British businesses are actively engaged in educating underprivileged children, ensuring they receive skills training; boosting sustainable development and nurturing entrepreneurial businesses.
Katja Hall, CBI Deputy Director-General, said:
“The economic relationship between India and the United Kingdom is in fine fettle.
“We want to make sure this partnership continues to go from strength to strength. Prime Minister Modi’s steps to improve the ease of doing business in India are a great boost, and we look forward to the EU-India Free Trade Agreement talks resuming. Building trade links with key markets is mission critical to boosting growth, creating jobs and enhancing productivity across the UK.”
Mukesh Rajani, India Business Group Leader at PwC UK, said:
“The UK has been one of India's largest investor for decades and this research has shown that it has continued to lead over the last 15 years by being the largest job creator and investor amongst the G20.
“But with Japan and other territories rapidly increasing levels of direct investment in the last few years, this advantage is by no means guaranteed. What's clear from our experience, and from this report, is that the UK will need to maintain a very active strategy for engagement and interaction with the Indian economy at all levels, in order to retain its position and profile as a significant partner in India's future growth story.”
Richard Heald, Chief Executive of the UK India Business Council, said:
“Sterling Assets clearly shows that the UK-India investment relationship is hugely beneficial for both countries, and will only increase in importance going forward.
“The report identifies hundreds of UK companies investing in the future of India, bringing in technology and innovation, and employing a staggering 691,000 people across India. Remarkably, they also spend an average 7% of their total revenue on training and re-skilling their employees in India as well as investing some 4.4% of profits on corporate social responsibility in India.
“Sterling Assets demonstrates that UK plc is a key strategic partner for India, positioning the UK well to further support the cornerstone initiatives of the NDA government such as “Make in India”, “Digital India”, “Skills India” and “Smart Cities”.”
UK investment is spread right across India, being largely concentrated in Mumbai and New Delhi, as well as Kolkata, Bangalore and Hyderabad. The chemicals sector attracts the lion’s share of British investment in India, at $5.78 billion (26% of UK FDI), followed by the pharmaceutical sector at $3.76 billion (17% of UK FDI) and the food processing sector at $3.05 billion (14% of UK FDI).
For a significant majority of firms (86%), India’s large and growing market is a principal attraction for investing in the country, as is the availability of talent (63%) and the use of English as the official language (53%).