India becomes a second largest source of FDI for UK
The United States has maintained itself as the number one source of FDI for the UK by delivering 462 projects and 20,131 jobs.
United Kingdom (UK) government figures which were released on July 10 showed that India has become the second-largest source of Foreign Direct Investment (FDI) in the UK by investing in 120 projects and creating 5,429 new jobs in the United Kingdom.
The Department for International Trade (DIT) inward investment statistics for 2019-20 has shown that India has moved up from its previous third spot. It represents an overall 4 percent FDI increase for the UK in 2018-2019, with 1,852 new inward investment in 2019-20.
The United States has maintained itself as the number one source of FDI for the UK by delivering 462 projects and 20,131 jobs. It is then followed by India, Germany, France, China, and Hong Kong.
• The number of Indian projects last year was 106 which resulted in 4,858 job creation. This contrasts with 120 India’s projects in the UK leading to 5,429 jobs creation in the financial year of 2019-20.
• New Zealand and Australia have been responsible for 72 projects and the Baltic and Nordic region for 134, which is an increase for both the regions.
• All the regions of England, Northern Ireland, and Wales saw an increase in the number of projects each nation has attracted.
• On the contrary, Scotland saw a decline in the number of projects from the previous year.
India and UK relations during India Global Week 2020:
Liz Truss, UK International Trade Secretary, while addressing the annual India Global week 2020 virtual summit stated that amid the COVID-19 crisis, UK has been working with India to keep supply chains open and keep trading routes alive. Truss added that as we emerge from COVID, it is vitally important that we don’t move to protectionism.
In reference to a planned virtual India-UK Joint Economic and Trade Committee (JETCO) summit in 2020, she added that on the trade side, UK is not letting the grass grow under the feet and both India and UK are carrying on negotiations virtually given the current crisis.
Increased investment in the UK:
The latest UK FDI numbers have shown that while the number of new jobs because of the foreign investment has declined- a global trend as observed in other FDI reports in 2020- the number of jobs safeguarded by FDI has increased by 29 percent.
As per DIT, it has worked closely with the existing investors to safeguard 26 percent more jobs compared to 2018-19. It also demonstrates a broad range of support that DIT delivers for the UK economy by promoting investment.
During the virtual summit, Liz Truss mentioned that the released figures further demonstrate the resilience of the UK economy and the work of the government to build and attract the inward investment in the UK. She also highlighted that the developing key sectors such as life sciences, advanced manufacturing, and renewable energy will help the country in rebound post-pandemic.