A new report published by Grant Thornton UK LLP (GTUK) in association with the Confederation of Indian Industry (CII) India meets Britain 2016: Tracking the UK’s top Indian Companies reveals that Indian companies are making an important contribution to the vitality of the UK economy.
The report, which monitors fast-growth Indian businesses operating in the UK, shows the combined turnover of these businesses has increased by £ 4 billion in the past year, up from £ 22 billion in 2014 to £ 26 billion in 2015. This impressive performance can be attributed in part to the high-growth sectors in which many of them operate — notably technology and telecoms (32% of high-growth Indian firms in the UK) and pharmaceuticals and chemicals (19%). The financial services sector now occupies third place, reflecting a growing trend for Indian financial service companies entering the UK market. Indian banks (Axis Bank, 32nd on the list has grown 30% since last year) are tapping into the demand for capital among Indian corporates coming to the UK and helping to meet the banking needs of UK’s Indian diaspora.
This has been aided by regulatory changes in India making it easier for Indian banks to set up overseas, as well as by UK regulation which has encouraged banks to set up as subsidiaries rather than UK branches.
New initiatives by the pro-business Narendra Modi government have also fostered trade. The research shows that Indian-owned companies pay combined UK corporate tax of almost £ 650 million, up from £ 500 m last year.
This year’s list is topped by telecoms and technology companies, Bharti Airtel and HCL Technologies, which achieved phenomenal growth of 886% and 728% respectively. Bharti plans to raise up to £500 million through its first bond issue in Sterling and use the proceeds to refinance its current debt.