As negotiations around a UK-India Free Trade Agreement pause following the 14th round of negotiations earlier this year, new research from leading business and financial adviser Grant Thornton UK LLP, finds that a record number of Indian-owned businesses in the UK have seen their revenue increase by at least 10%, with the top performing companies achieving an average annual growth rate of almost 50%.
The 11th edition of the Grant Thornton India Meets Britain report, developed in collaboration with the Confederation of Indian Industry, finds a record 971 Indian-owned business operating in the UK, up from 954 the previous year.
These 971 companies contribute significantly to the UK economy:
Employing 118,430 people, up from 105,931 in the 2023 report
Generating a combined turnover of £68.09 billion, up from £50.5 billion in 2023
Paying £1.17 billion in corporation tax, compared with £944 million in 2023
The report finds that Indian-owned companies in the UK are flourishing, with those who have reported two years of consistent accounts achieving an average annual growth rate of 24%*.
Anuj Chande OBE, Head of South Asia Business Group, Grant Thornton UK LLP, said:
“Over the past year, a sluggish global economy and deteriorating international security have created a challenging environment for businesses everywhere. Despite this, the Indian economy continued to thrive and we have seen a record number of Indian-owned companies operating in the UK. These businesses continue to make a significant contribution to the nation’s economy, both financially and as major employers. Despite economic challenges and uncertainty making it increasingly difficult for businesses, the average annual growth rate of Indian companies in the UK exceeds 20% - demonstrating the resilience of this important segment of the country’s economy.”
Record number of Indian companies in the UK achieve double digit growth
The research also includes a Tracker which identifies the fastest growing Indian companies in the UK each year, measured by those with a turnover of more than £5 million, year-on-year revenue growth of at least 10% and a minimum two-year track record in the UK**.
For the first time ever, the Tracker identifies 100 businesses, out of the 971 included in the research, who expanded their revenues by 10% or more**. This is a significant increase compared to 79 in the 2023 report and 37 the year before.
The top performing 100 companies achieved an average revenue growth rate of 48%. Of these, the three fastest-growing companies are Interglobe Enterprises (UK) Ltd (323%), SAR Overseas Ltd (319%), and Sterlite Technologies UK Ventures Ltd (244%).
Automotive manufacturing company Jaguar Land Rover was also included in the 2024 Tracker after achieving a growth rate of 25% on the previous year. Its inclusion in the list of fastest-growing companies saw the combined turnover of the 2024 Tracker companies rise to £42.80 billion, an increase of over 70% on the 2023 combined turnover of £25 billion.
Technology, media and telecommunications companies dominate the Tracker
Technology, media and telecommunications companies retain their top spot, accounting for the most companies in the Tracker this year – 27% (up from 24%). This is followed by manufacturing and engineering (20%) and pharmaceuticals and chemicals (16%). The financial services sector also made significant strides in this year’s Tracker, accounting for 6% of the fastest-growing companies, up from 1% the previous year – this is the sector’s best showing in the Tracker since 2021.
London remains top spot for fastest growing Indian companies
London remains the most popular location for the fastest growing Indian-owned businesses in the UK, with more than 50% of the 100 companies in this year’s Tracker based in the capital. Of the 52 London-based Tracker companies, 21 operate in the technology, media and telecommunications (TMT) sector.
The South was the second most prevalent region for this year’s fastest-growing companies, accounting for 18%, followed by the North (16%).
Anuj Chande OBE, added:
“Our Tracker identified a record number of Indian-owned businesses achieving over 10% revenue growth, hitting 100 businesses for the first time in 11 years - which is a significant increase on the numbers who have met this criteria previously. This shows the resilience of the market and the full recovery now being made as the wider business environment increasingly normalises as the long tail of COVID-19 subsides.
“With annual economic growth of over 8% now putting the Indian economy on track to become the third largest in the world within the next four years, the close UK-India relationship promises opportunities for growth and prosperity in both countries and we anticipate the number of Indian companies looking to the UK as their home to only grow further. The successful conclusion of negotiations on a UK-India free trade agreement could also add a new layer of opportunity for businesses in both countries.”
Also commenting on the research, Chandrajit Banerjee, Director General, Confederation of Indian Industry, said:
“This report highlights the positive and impactful footprint of Indian foreign direct investment in the UK, which is contributing both to the local economy as well as to India. At a time when India is rapidly progressing to becoming the third largest economy in the world, its participation in the UK economy is particularly beneficial. The growing footprint of India in the UK underscores the robust state of the bilateral relationship. Going forward we anticipate even closer partnerships between Indian and British business, resulting in mutual prosperity.”
*Based on the 231 Indian-owned companies in the UK, out of the 971 identified, that have filed consistent accounts for 2022 and 2023, for the same accounting period, and therefore have a turnover figure. Those that have achieved turnover growth greater than 500% have been removed (to remove outlier growth due to acquisitions or restructurings which may have led to extraordinary growth levels).
**The Tracker includes Indian-owned corporates with operations headquartered or with a significant base in the UK, with a turnover of more than £5 million, year-on-year revenue growth of at least 10% and a minimum two-year track record in the UK, based on the latest published accounts filed as of 31 March 2024, where available. Turnover figures have been annualised where periods of less or more than 12 months have been reported.
Sourced from Grant Thornton