Indians have emerged as second only to Americans as foreign employers of the British people. Tata’s JLR deal has moved India into becoming the UK’s second highest foreign employer for 07-08; Indians were responsible for almost one- fifth all British jobs saved and created by foreigners in the country.
In the past five years, Indian employers have saved and created a total of 33,515 jobs for Britons, rising from an almost non-existent base of 892 in 2003-2004.
While still behind major investors like US, Germany, or Japan, India has now emerged as an employer of significance for Britons – and growing thousand fold every year, according to the latest annual data released by UK Trade and Investment, the government department responsible for UK’s inward and outward investment. UK, like every other European economy, promotes inward foreign investment with a focus on protecting and creating local jobs.
While UK does not calculate FDI flows, preferring to use FDI stock figures, the total value of Indian direct investment into Britain is expected to jump 166% for calendar year ended 2007, to USD 4 bn.
India, as an inward investor into the UK saved and created 19,672 British jobs this year with 75 new projects, while US employed 29,809 with 478 new projects. Even as inward investments by countries like US, France and Canada have seen a downward trend in 07-08 – though absolute numbers are still much higher, growth in inbound investment came from countries like Ireland, Germany, India and China. Brian Shaw, author of the UKTI’s annual report, told ET:”Indian inward investment into the UK is broadening and deepening; we’re seeing an increased interest in sectors like creative industries and entertainment, from Bollywood, advanced engineering, life sciences, and financial services.”
This move marks a trend that’s moving away from traditional sectors like ICT. The latest FDI stock figures – for calendar year 2007 – will be released in October and India’s stock levels are expected to increase to $4BN, according to UKTI.
However, in terms of value, India’s share of UK’s inbound investment is still minuscule. The most recent global stock figure announced by UNCTAD for UK till the end of calendar year 2006, shows that total FDI stock into the UK was $1.135 trillion; India’s share of this was $1.5bn.
Foreign Secretary David Miliband said: “The UK has a global reach and our investment pipelines are spread across the world. Once again, the US remains our biggest investor; but we have also increased investment from a range of key countries … (including) high-growth markets such as India and China; and Ireland.”
In terms of new projects for 07-08, while US grabs a lion’s share of 30%, India’s share at 4.8% compares reasonably with countries like France (5.5%)Japan(6.5%), Germany(6.4%) and China (3.6%).The UK government has identified India and China as high growth FDI focus areas, and is keenly wooing both regions to invest in UK.
Courtesy :- Economic Times