Tag: economy

India shifts focus on doers not talkers to boost post-Covid economy

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Post date 3 June 2021
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Special attention will now be paid to the country’s micro, small and medium enterprises (MSME) sector, which employ a mammoth 11 crore people, reports Mahua Venkatesh.

As India starts the “unlock” process with the daily Covid 19 cases coming down, the Centre’s focus will shift on doers who can implement existing and new schemes announced under the Atmanirbhar Bharat Abhiyan package. Special attention will now be paid to the country’s micro, small and medium enterprises (MSME) sector, which employ a mammoth 11 crore people. While Finance Minister Nirmala Sitharaman last year announced a Rs 3 lakh crore collateral-free automatic loans to MSMEs with the aim of easing the liquidity crunch, only Rs 2.54 lakh crore out of the total allocation has been utilised so far.

Union Finance Minister Nirmala Sitharaman.

This has led to severe cash crunch for the sector, one of the pillars of India’s economy.

Sample this. The owner of a micro unit located at the outskirts of the glittering millennium city Gurgaon, dealing with air coolers, is staring at an uncertain future. His business typically picks up with the onset of summer. But this year, just like the last, has fetched him no money. “Not only has my income flow choked, I am also saddled with unused stocks. Banks refuse to help me start any other business as they want some collaterals,” he said, adding that he has no knowledge of provision of collateral free loans.

Banks, burdened with high non-performing assets – loans that do not fetch returns– and also a high level of compliance, are reluctant to provide credit to MSMEs.

The benefits of the scheme, therefore, have reached only a few. Reason? Over 95 per cent of the MSMEs can be categorised as “micro.” Most of these units have no access to institutional credit. The scheme essentially is for those who already have access to institutional credit.

“The Centre is aware of the fact that there have been serious gaps in the implementation of the schemes. The focus will be on timely execution of the existing schemes rather than carving out any new ones,” Gopal Krishna Agarwal, BJP’s national spokesperson on economic affairs, told India Narrative.

Animesh Saxena, president, Federation of Indian Micro and Small and Medium Enterprises (FISME) told India Narrative that the thrust until now has been on cheap credit. “What is needed more than cheap credit is easy access to credit. The benefit of the Rs 3 lakh crore is reaching to only those who already have access to institutional credit,” he said.

“They (micro units) either borrow from private lenders or NBFCs (non-bank financial institutions) at a much higher rate of interest. These micro units have been left outside the ambit of the scheme,” Saxena pointed out.

In a letter sent to the Reserve Bank of India on May 21, the FISME said, “When it comes to crunch, the first expense that is cut is payrolls. It is our humble prayer to RBI and the GoI (Government of India), not to let an MSME close down until all efforts to save it have failed. The alternative is scary. Along with tens and thousands of these small establishments, lacs of workers will come on road, increasing human misery manyfold. In economic terms too, it will shrink purchasing power further, creating a vicious circle of downward economic spiral.”

According to India Briefing, a platform providing insights on doing business in India, the MSME base is the largest in the world after China.

“The sector provides a wide range of services and is engaged in the manufacturing of over 6,000 products-ranging from traditional to hi-tech items,” India Briefing website said. There are about 63.05 million micro industries, 0.33 million small, and about 5,000 medium enterprises in the country.

(This content is being carried under an arrangement with indianarrative.com)

ALSO READ-Covid dents economy, GDP plunges 7.3%

Tags economy, India, India Covid

-Top News Economy USA

Biden’s $6tn budget plan draws mixed reviews

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Post date 30 May 2021
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US President Joe Biden

The budget unveiled on Friday calls for total spending to run above $6 trillion throughout the next decade, and rise to $8.2 trillion by fiscal year 2031…reports Asian Lite News

President Joe Biden’s $6 trillion budget proposal for fiscal year 2022 has drawn mixed reviews from lawmakers and analysts, setting the stage for a potentially heated debate in Congress.

The proposal, which included Biden’s plan to increase investment in infrastructure, education, health care and beyond, would push federal spending to the highest sustained levels in decades.

The budget unveiled on Friday calls for total spending to run above $6 trillion throughout the next decade, and rise to $8.2 trillion by fiscal year 2031.

Deficits, meanwhile, would stay above $1.3 trillion in the next 10 years.

Biden argued that the budget plan reforms America’s “broken tax code” to reward work instead of wealth, while also fully paying for the American Jobs Plan and the American Families Plan over 15 years, referring to the revised 1.7-trillion-dollar infrastructure plan and the $1.8 trillion spending proposal focusing on childcare and education.

The White House’s budget proposal sparked praise and criticism among lawmakers, whose views are largely divided along party lines.

“President Biden’s budget is an unequivocal declaration of the value that Democrats place on America’s workers and middle class families, who are the foundation of our nation’s strength and the key to Build Back Better,” House Speaker Nancy Pelosi said in a statement, noting that the Biden budget makes “historic” investments in the American workforce and economy.

“Congressional Democrats look forward to working with the Biden-Harris Administration to enact this visionary budget, which will pave the path to opportunity and prosperity for our nation.”

Richard Neal, chairman of the House Ways and Means Committee, said committee Democrats will consider the administration’s proposals carefully. Bernie Sanders, chairman of the Senate Budget Committee, said the committee will soon be holding a hearing on the president’s budget “as a first step”.

US President Joe Biden

ALSO READ: Stage set for Biden-Putin summit

Senate Minority Leader Mitch McConnell, meanwhile, lashed out at the budget plan, arguing that “Americans are already hurting from far-left economics that ignore reality”.

Republican lawmakers have previously lashed out at Biden’s multi-trillion-dollar spending proposals, calling them “liberal daydream”, and arguing that the tax hikes would lower wages, kill jobs and shrink the US economy.

The budget proposal for fiscal year 2022 was released as recent negotiations over Biden’s infrastructure plan failed to yield a deal.

The White House last week lowered the overall price tag of Biden’s $2.3 trillion infrastructure plan to $1.7 trillion, but Senate Republicans then proposed a $928 billion counteroffer, just over half of the President’s revised figure.

Outside Capitol Hill, the newly unveiled budget plan also prompted heated discussion.

“Having followed Presidents’ budgets for 40 years, I think it’s fair to say that while I might modify some things in the new Biden budget, it would, if enacted, do more to reduce poverty and inequality than any other budget in modern US history,” Bob Greenstein, founder of the Center on Budget and Policy Priorities, said on Twitter on Saturday.

“We are pleased that President Biden has put forward important details of his budget plan, that his economic assumptions are reasonable, and that he is proposing to offset new costs over time while modestly reducing long-term deficits,” the Committee for a Responsible Federal Budget, a watchdog group, said on Saturday.

The group, however, argued that the budget adds “too much” to already record-level debt over the next decade and “does far too little” to address rising structural deficits over the long term.

According to the group’s estimation, US debt would rise from 100 per cent of GDP at the end of fiscal year 2020 and a record 110 per cent at the end of 2021 to 117 per cent by the end of fiscal year 2031.

In nominal dollars, debt would grow by $17 trillion, to over $39 trillion by the end of fiscal year 2031.

The Peter G. Peterson Foundation, also a fiscal watchdog group, said in a statement on Saturday that the administration proposes increasing revenues to cover the cost of their longer-term initiatives; “however, those costs would not be fully offset during the traditional 10-year window, rather over a 15-year period”.

“The underlying structural imbalance between revenues and spending that existed before the pandemic budget would remain, leaving an unsustainable fiscal outlook,” the foundation said.

ALSO READ: Biden pitches mammoth $6 trillion budget

Tags economy, joe biden, USA

-Top News Asia News

‘Pakistan on the brink of complete breakdown’

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Post date 23 May 2021
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The ability to challenge or think comes with education, and at this moment education is not a priority in Pakistan…reports Asian Lite News

There are actualities that could possibly lead Pakistan into a civil war.

Previously, Pakistan has experienced the consequences of a civil war that resulted in the foundation of Bangladesh.

Irfan Raja in an opinion piece in Asia Times has said that as long as the growth of inequality and injustice is unchecked, the chance of a complete breakdown becomes more likely in Pakistan.

Though bad governance, corruption and poverty are certainly factors that can stir hatred and violence in any society, inequality and injustice are the main components that drive a society into civil war. But there are many other factors that can lead Pakistan into a second civil war.

First is the functioning of a feudal society that restricts equality and limits ordinary people’s progress in education and intellectual growth.

Second is the uninterrupted furtherance of a colonial legacy in Pakistan that empowers the bureaucracy and establishment to the extent that civil servants have become feudal lords in uniforms.

Seventy-three years since independence, Pakistan is still failing its purpose of existence. It’s not an Islamic welfare state nor a democracy or liberal state.

Instead, it has become an “intolerant society.” The moment people question the policymakers, they are labeled foreign agents, traitors, or disloyal.

People walk at a market in eastern Pakistan’s Rawalpindi

ALSO READ: World Bank grants Pakistan $153mn for Covid fight

The ability to challenge or think comes with education, and at this moment education is not a priority in Pakistan.

Writer and journalist Tariq Ali has explained how colonial masters appointed elites who shaped an education system that serves their interests and produce deaf and blind people, not thinkers.

Ali believed that the Pakistani state has “failed to forge a national identity” while its leaders are unable and unwilling to “address the country’s poverty and inequality”, while the military has a role in “the country’s spiral toward violence and disunity.”

So, what really causes civil war? Experts offer various reasons that could potentially “fuel a civil war.” For example, a World Bank report suggests that “it is due to economic inequalities or to a deep-rooted legacy of colonialism.”

Once a civil war starts, it is “difficult to end”, wrote Raja.

Many experts have warned several nations against sleepwalking into civil war.

Pakistan has failed to address many injustices. Many civilians have died in custody of Pakistan’s security institutions, particularly in troublesome areas of Balochistan, Sindh, Punjab and Khyber Pakhtunkhwa. Amnesty International has revealed shocking data on “torture and death in police custody” in Pakistan, reported Asia Times.

ALSO READ: Pakistan’s strategic shift in Afghanistan’s post-American phase

Tags economy, PAKISTAN

-Top News Environment EU News

EC vows to develop sustainable maritime economy

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Post date 19 May 2021
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The Green Deal is the EU’s lead program to achieve carbon neutrality in 2050, reports Xinhua news agency…reports Asian Lite News.

The European Commission has pledged to develop a sustainable maritime economy in a bid to achieve carbon neutrality by 2050.

“We add the blue dimension to the European Green Deal,” said European Commissioner Virginijus Sinkevicius, who is in charge of Environment, Oceans and Fisheries at the Commission, said on Monday.

The Green Deal is the EU’s lead program to achieve carbon neutrality in 2050, reports Xinhua news agency.

By blue economy, the Commission refers to all sectors working with or in close proximity to seas and oceans, including fisheries, aquaculture, coastal tourism, maritime transport, port activities and shipbuilding.

It provides employment to 4.5 million people in the EU, with a turnover of more than 650 billion euros ($789 billion).

“Pollution, overfishing and habitat destruction, coupled with the effects of the climate crisis, all threaten the rich marine biodiversity that the blue economy depends on,” said Frans Timmermans, Executive Vice-president of the European Commission for the Green Deal.

Carbon emission(Pixabay)

The goals are to reach climate neutrality, to switch to a circular economy, to preserve biodiversity, to ensure sustainable food production and to improve the management of maritime space, according to a press release from the EU Commission.

The transition to sustainability for the blue economy will be funded by relevant EU funds and private capital will also be mobilized, according to Sinkevicius.

ALSO READ-Portugal to allow EU and UK tourists

Tags CLIMATE, EC, economy

-Top News London Diary London News UK News

#LetsDoLondon: Sadiq launches campaign for domestic tourism

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Post date 12 May 2021
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The 50-year-old politician from Britain’s main opposition Labour Party has allocated 6 million pounds ($8 million) to directly support the new campaign…reports Asian Lite News.

Mayor of London Sadiq Khan has launched a domestic tourism campaign to kick-start the British capital’s economy as restrictions on international travel will likely continue this year, local media reported.

In his signing-in speech for a second term as Mayor, Khan on Monday announced the new “Let’s Do London” campaign to attract domestic visitors to the city and bring its economy back to life, reports Xinhua news agency.

A pedestrian walks by a pub, The Hope, shuttered in London due to coronavirus regulations. Thousands of British pubs have not survived the pandemic, according to an industry association, and the ones that have will need financial support “for years if they are to recover.” Photo: Yui Mok/PA

The 50-year-old politician from Britain’s main opposition Labour Party has allocated 6 million pounds ($8 million) to directly support the new campaign.

The campaign and events program will bring together London’s world-leading hospitality, culture, night-life and retail venues to promote all that the city has to offer.

“With restrictions on international travel likely to continue this year, Londoners and visitors from the UK have a unique opportunity to experience all the capital has to offer without the queues.

“In doing so you’ll be providing vital support for our world-leading venues as they start to re-open and need our help more than ever.

“My mission over the next three years is to put the dark days of the pandemic behind us and to deliver a better and brighter future for London, creating a fairer, greener and more prosperous city, where everyone gets the opportunities they need to fulfil their potential,” he added.

Khan confirmed that a top priority for his second term will be jobs, standing up for the Londoners who lost their jobs during the Covid-19 pandemic and helping to skill up the city’s residents to get back into work.

He also confirmed he will continue to prioritize the long-standing issues that matter most to Londoners, including safer streets, more affordable housing and action to tackle air pollution and the climate emergency.

During the May 6 local elections, more than 5,000 seats were up for grabs in city hall and town hall elections, with the Mayor of London and 12 provincial mayors along with police and crime commissioners also being elected.

ALSO READ-UK sets out post-Covid plans in Queen’s Speech

Tags economy, revive, Sadiq Khan, tourism

Business Economy

2nd Covid wave derails economic rebound’

Post author By Newsdesk
Post date 11 May 2021
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It said that base GDP growth forecast for fiscal 2022 at 11 per cent, with risk firmly tilted downwards….Reports Asian Lite News

The second wave of novel coronavirus threatens the economic growth of India, said a Crisil report.

It said that base GDP growth forecast for fiscal 2022 at 11 per cent, with risk firmly tilted downwards.

As per the report, the GDP growth rate may drop to 9.8 per cent, if the second wave peaks by May-end and if the peak is reached by June-end, the GDP growth rate is likely to fall to 8.2 per cent.

It further said that India Inc’s revenue growth is projected at 15 per cent for fiscal 2022 on a low base of two years in base case and moderate scenario and in alternate severe scenario, the growth is pegged at 10-12 per cent.

“Rising costs could pose headwinds to companies as they recover in specific sectors,” it said.

Restrictions, in terms of number of days, are less compared with fiscal 2021 so far, though is still evolving. Lockdowns are less restrictive for economic activity and are concentrated in the most-hit states.

The Crisil report noted that the first half of fiscal year 2022 would be supported by a base effect but it would be clouded by the pandemic’s spread. The recent surge in Covid-19 cases has led to high-frequency indicators showing some softening.

However, the second half would be led by better-spread economic growth, owing to increased inoculations and better adaptability to the pandemic, which would support sectors that are lagging.

“Also, H2 should see stronger global growth, supporting India’s exports to an extent,” it said.

Meanwhile, Witnessing a sharp decline, India recorded 3,29,942 fresh Covid-19 cases in the last 24 hours with 3,876 fatalities, the Union Ministry of Health and Family Welfare said here on Tuesday.

On Friday, India had recorded the highest ever 4,14,188 cases.

Kerala

In the past 19 days India’s daily Covid tally has risen by over three lakh cases and over 3,000 casualties have been reported for the last 13 days.

India’s total tally of Covid-19 cases now stands at 2,29,92,517 with 37,15,221 active cases and a total of 2,49,992 deaths so far.

According to the Health Ministry, a total of 3,56,082 people have been discharged in the last 24 hours, while 1,90,27,304 people have been cured from Covid till date.

The Health Ministry said that a total of 17,27,10,066 people have been vaccinated so far in the country, including 25,03,756 who were administered vaccines in the last 24 hours.

According to the Indian Council of Medical Research (ICMR), 30,56,00,187 samples have been tested up to May 10 for Covid-19. Of these 18,50,110 samples were tested on Monday.

ALSO READ:Republican Party becoming a Trump franchise

Tags Covid-19, economy

-Top News Australia China

Beijing strikes back at Australia

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Post date 6 May 2021
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Xi Jinping

The retaliation comes shortly after the Australian government suspended two Belt and Road Initiative pacts with China…reports Asian Lite News

China’s National Development and Reform Commission (NDRC) said on Thursday that it would suspend all activities under the China-Australia Strategic Economic Dialogue framework set up in 2014, while accusing Canberra of a “Cold War mindset”.

The move comes shortly after the Australian government scrapped two Belt and Road Initiative agreements with China, reports dpa news agency.

In a statement, the NDRC said its decision was based on the “current attitude” of the Australian government.

“Recently, some Australian Commonwealth Government officials launched a series of measures to disrupt the normal exchanges and cooperation between China and Australia out of Cold War mindset and ideological discrimination,” the statement said.

Australian Prime Minister Scott Morrison

UAE economy on track towards recovery in 2021

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Post date 3 May 2021
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UAE economy on track towards recovery in 2021

The economic performance for 2020 revealed that the country’s macroeconomic indicators had seen a 6.1% decline in GDP compared to 2019, reports Asian Lite News

The UAE economy performed better than expected in 2020 despite the current global challenges brought about by the COVID-19 pandemic, said Abdulla Bin Touq Al Marri, UAE Minister of Economy, following the issuance of the preliminary results of the country’s economic performance by the Federal Competitiveness and Statistics Centre.

The results highlight the effectiveness of the proactive economic measures and incentive packages rolled out by the UAE government, based on policies that highlight the country’s speed and flexibility in responding to global changes, as well as its constant efforts to promote economic diversification.

The preliminary results of the UAE’s economic performance for 2020 revealed that the country’s macroeconomic indicators had seen a relatively limited decline in the gross domestic product and in the non-oil GDP last year by 6.1 per cent and 6.2 per cent, respectively, at constant (real) prices compared to 2019. This is comparatively low decline considering that the slump in major global economies reached several times lower.

Al Marri said that the year 2020 was an unprecedented year full of economic and health challenges that negatively impacted major global economies, and the UAE was not immune to the global economic system in this vulnerability.

This is particularly so since the country’s economy is linked through foreign trade, foreign investment, tourism and the logistical sector with the movement of trade and investment and global transportation, which declined significantly in 2020 worldwide. However, the government’s proactive economic policies in dealing with the repercussions of the crisis, and the launch of supportive economic packages had a positive role in limiting the negative effects of the pandemic on various vital sectors and on economic activity in particular.

The activation of all economic initiatives related to non-oil sectors and activities contributed positively to enhancing the stability of the country’s non-oil domestic product in the year 2020, as it reached Dh1 trillion at constant prices. Meanwhile, the GDP at constant prices for the year 2020 amounted to Dh1.41 trillion.

In terms of negatively affected economic activities among the components of the real GDP for the year 2020 compared to 2019, accommodation and food services activities witnessed a negative growth of 23.6 per cent, as well as transportation and storage activities by 15.5 per cent. Wholesale and retail trade dropped by 13.1 per cent, while it decreased the activities of construction and building activities by 10.4 per cent. In addition, financial and insurance activities dropped by 3.0 per cent, while the manufacturing industries recorded an increase of 0.2 per cent in 2020 compared to 2019.

Al Marri stressed the importance of the initiatives implemented by the government with the participation of the private sector, including the efforts to improve procedures and legislation and diversify services, thus preserving the country’s position as an environment that attracts investments on an ongoing basis. These efforts also contributed to promoting foreign trade and opening up to the world as one of the components of international economic relations.

He said the UAE continues the policy of economic openness as an approach and practice and is working on adopting a forward-looking vision to enhance its position as a global investment environment. These efforts fall in line with the directives and visions of the wise leadership, which believes in the importance of continuing work and employing all capabilities to enhance the national economy’s position as one of the region’s most diverse and growing economies.

With the continued implementation of the recovery plan and support packages for the economic sectors, the estimates of the Central Bank of the UAE indicate that the positive growth rates of the national economy will be restored by the end of 2021. It estimates a 2.5 per cent growth in real GDP, and 3.6 per cent in non-oil real GDP. These figures are expected to rise to 3.5 per cent growth in real GDP, and 3.9 per cent growth in non-oil real GDP in 2022.

Also read:UAE’s cargo for medical aid lands in India

Tags economy, UAE

-Top News Asia News

‘Pak govt failed to attract foreign investments’

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Post date 28 April 2021
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Pakistan’s economy is in bad shape is no more a revelation, as its project performance dropped to just 58 per cent in the duration of 2018-20,according to the reports…Reports Asian Lite News

Despite its claims over providing ease of doing business, the ruling Imran Khan-led PTI government has failed to lure foreign investors to the country, according to a recent media report.

In an article dated Sunday, the editorial board of The Express Tribune wrote that according to the latest data, foreign direct investment (FDI) has plummeted to USD 1.395 billion during the July-March period of the ongoing fiscal year as compared to USD 2.15 billion in the same period of last fiscal. This shows a 35.1 per cent fall in foreign investment flows.

“So while the impact of the raging pandemic is there, it’s also a fact that Pakistan has never been a go-to destination for foreign investors. There are a variety of reasons for that including lack of political stability and security in the country as well as unfavourable business climate marked by absence of tax incentives, high power and gas tariffs, low growth potential, dilapidated transport infrastructure,” the Sunday editorial read.

“No wonder, the volume of foreign direct investment in Pakistan has been abysmally low,” it added.

Besides, investment flows from China for CPEC-related projects constitute much of the total. During the period under study i.e. the first three quarters of the ongoing fiscal year, inflows from China stand at $859.3 million which is equal to 46 per cent of total foreign investment, the editorial pointed out.

Also read:Taliban negotiators visit Pakistan to ‘consult leadership’

“However, what must be a cause for concern for the government is that these inflows have also decreased – to $650.8 or by 24 per cent – year on year,” the editorial from The Express Tribune read.

According to a report last week, Pakistan’s economy is in bad shape is no more a revelation, as its project performance dropped to just 58 per cent in the duration of 2018-20, from 70 per cent in 2017-19 due to poor performance in the Public Sector Management (PSM) and water sectors.

An editorial published in The News International published on Wednesday read: “Pakistan’s economy is in bad shape is no more a revelation, but the Independent Evaluation Department (IED)’s report of the Asian Development Bank (ADB) is revealing in its contents. In its latest report, the ADB has disclosed that Pakistan’s project performance dropped to just 58 per cent in the duration of 2018-20, from 70 per cent in 2017-19.”

Moreover, the 35 per cent year-on-year decline in Foreign Direct Investment (FDI) in the first three-quarters of the outgoing fiscal is a surprise only to those who haven’t been paying attention to investment patterns in the country.

An editorial in Daily Times published on Wednesday pointed out, “The 35 per cent year-on-year decline in FDI in the first three-quarters of the outgoing fiscal is a surprise only to those who haven’t been paying attention to investment patterns in the country.” (ANI)

Also read:Cops confirm top B’desh militant Mamunul was trained in Pakistan

Tags economy, FDI, PAKISTAN

-Top News Business UK News

Indian companies’ contribution to UK economy grows

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Post date 28 April 2021
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The new research, developed by Grant Thornton UK LLP in collaboration with the Confederation of Indian Industry, analyses the data of UK-incorporated limited companies that are either owned or controlled by Indian interests, reports Asian Lite News

As the Prime Minister’s visit to India is postponed but conversations are set to continue online later this month on the plans for the future partnership between the UK and India; the eighth edition of the Grant Thornton India meets Britain Tracker explores the significant contribution Indian companies continue to make to the UK economy, which has increased in almost every measure compared to the previous year’s report.

This year’s research finds that there are 850 Indian companies operating in the UK, up from 842 in the 2020 report. These companies:

recorded £50.8 billion total turnover, up from £41.2 billion in 2020
employed 116,046 people, an increase from 110,793 in 2020
paid £459.2 million in corporation tax, down from £461.8 million in 2020
47% have at least one woman on their board, compared with 20% in 2020

During 2020, despite continued uncertainty over the final outcome of the UK’s exit from the European Union, the research finds that Indian investors have continued to invest in the UK. They were involved in ten acquisitions (the highest of any single EU country) throughout the year, including four in the technology and telecoms industry and two in manufacturing.

People wearing face masks walk past sale advertisement on Oxford Street in London, Britain

The report also provides a Tracker of the fastest growing Indian-owned companies in the UK, 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.

This year, 49 companies met the qualifying criteria for appearing in the Tracker, achieving an average revenue growth rate of 40%.

Technology and telecoms companies dominate but interest in pharmaceuticals rises

For the eighth year in a row, technology and telecoms companies dominate the Tracker, accounting for 20 of the 49 companies included. Birlasoft Solutions tops the list as the fastest-growing company this year, recording 158% revenue growth. Meanwhile Diligenta (owned ultimately by Tata Sons) was the largest company listed, with revenue of £388 million and an impressive growth rate of 62%.

Also Read – £100 bn by 2030: India’s road map for enhanced trade ties with UK

While technology and telecoms continues to dominate, the proportion of pharmaceuticals and chemicals companies featuring in the Tracker increased significantly this year, up to 27% of the total from 15% in 2020.

London remains preferred location

Over half (53%) of the fastest-growing Indian companies in this year’s report are located in London, confirming the capital as their continued preferred location. However, the South is found to be growing in popularity, with the proportion based in this region up by almost half to just over 16%, from 11% last year.

This year’s Tracker identified that over half (53%) of the fastest growing companies have a female director on their board. This is higher than the comparative figure for the entire Indian company landscape in the UK – with 47% of the 850 Indian companies reporting a female director on their board.

Anuj Chande, Head of South Asia Business Group, Grant Thornton UK LLP

Anuj Chande, Head of South Asia Business Group, Grant Thornton UK LLP, commented:

“Despite the challenges of the past year and, as Britain aims to increase trading and investment links around the world post Brexit, the long-standing ties between Britain and India only look set to deepen.

“Our research finds that the number of Indian companies operating in the UK has increased and that many continue to grow at a rapid rate, with some recording triple digit growth.

Also Read – India to Attract More Investments

“Brexit marks a significant moment for the UK-India relationship. With a UK-EU Trade and Cooperation Agreement now reached, the UK is free to begin developing its new post-Brexit identity as a ‘Global Britain’ and to strengthen links with major economies beyond Europe. India looks to be one of the first, with the Prime Minister’s postponed visit to India – set to have been his first international visit outside of Europe post-Brexit – a clear indication of the significance of the relationship, with both parties confirming that the conversation will continue online for now.

“As the UK government looks to supercharge the economic partnership to support growth, jobs and prosperity, and India continues its journey to becoming one of the world’s largest economies, the ‘living bridge’ between the two countries, formed by more than 1.5 million Indian diaspora living in the UK, will be more important than ever. India is also likely to benefit from the major modifications made to the UK’s immigration policy, with the new point-based system for visas for skilled workers likely to benefit India significantly due to the creation of a more level playing field.”

Lord Gerry Grimstone

Minister for Investment Gerry Grimstone said:

“I welcome these findings, which show that the UK continues to be a highly attractive destination for Indian investors, who are both bringing jobs to the UK and increasing female representation at the highest level in our boardrooms.

“Deeper trading ties with India will ensure more fast-growing companies like Birlasoft and Diligenta will have the opportunity to bring jobs and growth to the UK, as we build back better, and stronger, from Covid-19.”

Gaitri I. Kumar, the High Commissioner of India to the UK

High Commissioner of India to the UK, Ms. Gaitri Issar Kumar added:

“Trade and investment flows between India and the United Kingdom have remained on a positive trajectory despite the pandemic. Our Governments are committed to removal of trade barriers and encouraging collaborations in innovation and technology development particularly in sectors where our nations have complementary capabilities. I congratulate all the Indian companies listed – whose leadership and success will inspire new ventures.”

Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), said:

“The statistics are a reflection of the strong contribution that Indian industry has continued to make in the UK, in keeping jobs and supporting the local economy. As discussions around the India and UK Enhanced Trade Partnership agreement continue, and as nations continue to battle the pandemic, CII and its members have worked towards facilitating an economic recovery path which has been invaluable and it is therefore highly encouraging to see the role our Indian industry has played here in the UK.”

Tags BUSINESS, economy, Grant Thorton, India, UK