India second largest investor in UK: E&Y

India has been rated as the second most largest foreign investor in the UK by consultancy firm Ernst and Young.

India has been rated as the second most largest foreign investor in the UK by consultancy firm Ernst and Young, acknowledging India Inc's growing competitiveness and willingness to take up global challenges.

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E&Y in its latest European Investment Monitor (EIM) has rated India as the second largest investor in the UK, behind the US which maintained its predominance as the single largest investor in Europe.

Overall Indian investments into Europe increased by 66 per cent, E&Y said.

"Indian companies are winning clients from Western European competitors by investing in sales and customer support offices and also software development centres close to their European customers as a means to drive growth," E&Y Regional Development Director Nigel Wilcock said in a statement.

The investment monitor revealed that UK is still the most attractive investment destination in Europe with a 23 per cent increase in the number of projects announced in 2006. The number of projects during 2006 increased to 686 from to 559 in 2005.

Germany, Spain, Switzerland and Italy all showed a substantial growth in investment levels. Despite having previously threatened to overtake the UK as the most popular destination in Europe, investment to France grew modestly in 2006 with its overall share declining, it said.