According to Cameron, the UK is the largest G20 investor in India, while India invests more in the UK than the rest of the European Union combined. In 2014-15, India emerged as Britain’s third biggest job creator, creating 7,730 new jobs, with investments from India increasing by 65 per cent making it the third largest source of foreign direct investment (FDI).
Cameron recently said: “In every walk of life, our cooperation is creating skills and opportunities for our people, and advancing our ability to harness science, technology and innovation for our nations and the world. Our partnership can contribute to India’s ambitious plans to transform the lives of 1.25bn people and UK’s goal to rebalance its economy and sustain its global leadership in areas ranging from aerospace to financial services.”
The prime ministers explained the business relationship between the UK and India would welcome £9.2bn of commercial deals. And the UK has accounted for 8.56 per cent of total FDI in India during the last 15 years, with Indian companies employing 110,000 people in the UK.
Cameron noted the opening of the Indian market to greater FDI in the insurance sector. In order to extend insurance cover to India’s population, the government has increased the FDI limit in insurance and pension sector to 49 per cent. As a result, the UK’s insurance industry have announced a number of agreements to increase their FDI in the country. These agreements would amount to approximately £238m of FDI in the first instance subject to regulatory approvals.
“This will support the ongoing development of the Indian insurance and reinsurance sectors, which are key elements in promoting sustainable economic growth,” the government said.
The Indian economy is predicted to grow at 7.3 per cent this year, making it the fastest growing large economy in the world. Last year bilateral trade was worth nearly £20bn. UK exports of goods increased by 3.4 per cent and of services by 9.8 per cent.
Cameron said: “As the largest G20 investor in India, British businesses already support nearly 700,000 jobs in India and India invests more in the UK than in the rest of the EU combined creating almost 8000 new jobs here last year. During this visit, British and Indian companies are announcing new collaborations, together worth more than £9bn.”
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