Budget Submission Report 2017
This submission is the outcome of extensive business consultation conducted by the UK India Business Council (UKIBC) and Confederation of British Industry (CBI), in advance of the India Budget which is due to be presented on 1st February 2017.
The UK is the largest G20 investor and job creator in India. There are some 535 UK businesses in India with estimated combined annual revenues of more than $54bn. UK businesses employ 691,000 people and have an aggregate annual Indian wage bill in of excess $6bn. In total, these companies have invested US$22.2 billion in the form of equity FDI between April 2000 and September 2015. UK businesses make an important contribution to the Indian economy and society through job creation, training and CSR activities1.
Critically, UK businesses represent a significant percentage of the formal corporate sector in India as shown by analysing the employment generated by British companies by sector in India as a % of all foreign employment.
Industry British companies’s % share All industries 7% Services sector 7% Food processing industry 52% Chemicals 58% Drugs & Pharmaceuticals 27% Petroleum & natural gas 38% Source: Sterling Assets India, 2015
As such, the policies of the Indian Government and the announcements in the Indian budget are an increasingly important factor in the decision-making process of UK businesses and not just those already in India, but the many others considering international investments and weighing the options to enter the Indian market.