Industry analyses have suggested Indian and other companies have held back on expansion or deferred opening new offices in the UK due to uncertainty over Brexit, but new official figures show investments from India was up 321% in the last year.
The figures from the Office for National Statistics show stocks from across Asia have increased by more than 33% in 2017 to £128 billion and stocks from Japan increased by 71% to £78 billion.
“The greatest growth from any country has come from Indian investors, rising 321% to £8 billion,” the department for international trade said.
The United Kingdom is due to leave the European Union on March 29, 2019.
Total trade in goods and services (ie exports plus imports) between the UK and India was £19.6 billion in the year to end 2018 Q2, a 20.0% increase from year to end 2017 Q2.
In the year to end 2018 Q2, the UK exports to India amounted to £7.9 billion (a 27.9% increase from year to end 2017 Q2) while British imports from India were £11.7 billion (a 15.1% increase from year to end 2017 Q2).
“This means the UK reported a trade deficit with India of £3.8 billion, compared to a trade deficit of £3.9bn in year to end 2017 Q2,” the department said.
{{/usCountry}}“This means the UK reported a trade deficit with India of £3.8 billion, compared to a trade deficit of £3.9bn in year to end 2017 Q2,” the department said.
{{/usCountry}}Of the UK exports to India in the year to end 2018 Q2, £5.2 billion (65.7%) were goods and £2.7 billion (34.3%) were services. Of UK imports from India in the year to end 2018 Q2, £7.8 billion (66.9%) were goods and £3.9 billion (33.1%) were services.
In the year to end 2018 Q2, India was the UK’s 16th largest trading partner (accounting for 1.5% of total UK trade); 20th largest export market (accounting for 1.2% of all UK exports), and 14th largest import market (accounting for 1.8% of all UK imports)
“As we prepare to leave the European Union, foreign investors from around the globe are as confident as ever investing in the UK,” international trade secretary Liam Fox said.
“The significant rise in the amount of investment from Asia is evidence that the growing economies are important partners for the UK, relationships which I am committed to developing and deepening,” Fox said.
Overall, the value of the UK’s FDI stocks increased by £12.6% to £1,337 billion in 2017 compared with the previous year.
The financial services sector attracted more FDI than any other industry, accounting for 28.8% of the total inward investment, accumulating over £385 billion by the end of 2017.