Indian investors create 4000 new jobs in U.K.
By siliconindia   |   Thursday, 25 June 2009, 00:27 IST   |    1 Comments
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Indian investors create 4000 new jobs in U.K.
Bangalore: Indian companies are still investing in the U.K. According to the 2009 U.K. inward FDI official data, India has retained its position as the second highest foreign employer in the U.K., after the U.S. This year, Indian private investors created more than 4000 jobs, up 44 percent in the absolute number of projects. Out of 35,000 new jobs created by foreigners in U.K., Indian accounts for 11 percent. Last year, India had succeeded in creating over 19,000 jobs, with just 75 new projects. Indians have been responsible for 7,966 British jobs in 2008-09, at a time when the U.K. jobless figures peaked at over two million for May. While the number of projects has risen, the sizes have dropped. The U.S., still the largest inward investor in the U.K., set up 621 new projects this year, but employed only 12,888 new people. It had created over 29,000 jobs last year, with only 478 new projects. India replaced Japan as the largest Asian supplier of FDI projects this year, with major investments in IT, life sciences and advanced engineering. Biocon established its European HQ in the UK and Dr. Reddy�s acquired a clinical trials unit. Despite the recession, U.K. has managed to retain its position as the world's second favorite destination for setting up new projects, second only to the U.S. New projects, including establishing offices and headquarters, have gone up -251 HQ and European head offices were set up - but this year's results show a marked decrease in M&A and joint venture activities. It went down by six percent. In sectoral composition, creative industries emerged as the fastest growing new sector, with inward investments rising by about 65 percent. Software, advanced engineering, business services, ICT and Life sciences were the other favorite sectors for foreign investors. Reiterating U.K.'s stance on 'open for business,' Lord Peter Mandelson, business secretary said, "The U.K. maintains the best effective regulatory environment for global investors and businesses to thrive"