New Delhi: Given its penchant for expanding its footprint overseas, India Inc has emerged as the second biggest foreign investor in the United Kingdom, a latest study shows.
Global consultancy and research major Ernst & Young said on Thursday that India has become the second most important source after the US for inward investment into the UK with nearly three-fold jump in the number of projects announced by Indian companies there in the first half of 2006.
The UK captured over half of all projects announced by Indian companies into Europe in the first six months this year, shows the latest issue of E&Y European Investment Monitor, which was released in New Delhi on Thursday.
While the US firms announced 145 investment projects in the UK in first half of FY'06, up from 102 a year ago, projects announced by Indian companies nearly trebled to 21 from eight in the year-ago period.
The UK has consolidated its position as the most attractive destination for foreign investment in Europe, with a jump of over 30 per cent in the number of projects announced in the first six months of 2006 to 315 from 236 in 2005, E&Y said.
The report said that Indian and US investments have been among the primary drivers of the foreign investment in the UK and Western Europe.
E&Y Regional Development Director Nigel Wilcock said, "Indian companies need to gain clients from Western Europe and are therefore putting sales offices and also customer support activities close to their customers as a conduit to helping growth in India."
Some Indian companies are also expanding their core business process activity overseas, he added.
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