£100 Million within Days from India to the UK! Indian Companies Rush to Invest

The United Kingdom is basking in a wave of optimism as Indian companies have pumped over £100 million into the British economy, a milestone celebrated just days after the relaunch of Free Trade Agreement (FTA) negotiations with India.

The investments, poised to create hundreds of jobs over the next three years, span cutting-edge sectors such as artificial intelligence, robotics, and student housing, underscoring the deepening economic ties between the two nations.

The announcement came on the heels of a high-stakes visit to New Delhi earlier this week by UK Business and Trade Secretary Jonathan Reynolds, who met with Indian Commerce Minister Piyush Goyal to kickstart the long-stalled FTA talks. The negotiations, which began anew on February 24 after an eight-month pause due to elections in both countries, aim to forge a “balanced and ambitious” deal that could unlock billions in trade and investment. “This is a top priority for us,” Reynolds said at a joint press conference in Delhi. “India’s growth is a golden opportunity, and we’re here to seize it.”

Among the standout investments flagged by the UK Department for Business and Trade (DBT) is Aaseya Technologies’ £25 million commitment to digital transformation projects, leveraging automation to boost UK businesses. Sastra Robotics, meanwhile, is injecting £8 million into Manchester to expand its robotics innovation hub, while University Living, a student housing platform, has pledged £10 million to establish a UK office. Test Yantra rounds out the list with a £10 million investment in testing and training services, further cementing India’s role as a key player in Britain’s economic landscape.

For workers it is a great relief.  The DBT estimates these investments will generate employment in cities from London to the northwest, amplifying the impact of India’s growing footprint. Official figures show Indian foreign direct investment (FDI) stock in the UK surged 28 per cent in 2023, making India the second-largest investor by project numbers for five straight years.

The FTA relaunch has fueled this momentum. After 14 rounds of talks since 2022, progress stalled last year amid political shifts, but the Labour government under Prime Minister Keir Starmer has made economic growth a cornerstone of its agenda. Starmer, who greenlit the talks’ revival after meeting Indian Prime Minister Narendra Modi at the G20 Summit in Brazil last November, hailed the investments as a step forward in our mission to deliver prosperity across the UK.

The timing couldn’t be better for Britain, which exported £17 billion in goods and services to India in the year ending September 2024. A trade deal could slash India’s high tariffs on British exports such as Scotch whisky and cars, while opening doors for UK firms in India’s booming insurance and telecom sectors, especially after India raised its FDI cap in insurance to 100 per cent earlier this month. “This isn’t just about jobs today,” says Richard Heald, chair of the UK India Business Council. “It’s about positioning our economies for the future.”

Not everyone is sold, though. Some UK critics worry the deal might compromise on issues such as immigration or environmental standards, while Indian negotiators push for easier visa access for their skilled workers, a point Goyal downplayed in Delhi, insisting immigration isn’t part of the FTA framework. Still, the mood in London is upbeat. Investment Minister Poppy Gustafsson, fresh from pitching UK opportunities in Mumbai and Bengaluru, told investors, “Britain’s stability and connectivity make it the perfect partner for India’s ambition.”

As the FTA talks gain steam, the £41 billion UK-India trade relationship, already supporting over 600,000 jobs across both nations, stands on the cusp of a new era. For now, the UK is toasting its latest Indian windfall, hopeful that this week’s handshake in Delhi will yield a deal to match.