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Indian companies have dramatically expanded their presence in the United Kingdom, underscoring the growing economic integration between the two countries and the early impact of the landmark India-UK trade agreement signed last year.
According to the latest India Meets Britain Tracker 2026, the number of Indian-owned businesses operating in the UK jumped nearly 60 per cent year-on-year to 1,912 companies from 1,197 in 2025. Their combined turnover surged to £105.77 billion (about US$143 billion), up from £72.14 billion (US$97.5 billion) a year earlier, highlighting the increasing scale of Indian corporate investment in Britain’s economy.
The report, produced by Grant Thornton UK in partnership with the Confederation of Indian Industry (CII) and India Global Forum (IGF), comes less than a year after India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA), which is expected to enter into force shortly. The pact aims to reduce trade barriers, facilitate investment flows and help the two countries achieve bilateral trade of US$100 billion by 2030.
The findings suggest that Indian firms are becoming increasingly important contributors to the UK economy at a time when Britain is seeking new growth drivers amid sluggish domestic expansion. Indian-owned companies collectively paid £378 million (US$511 million) in corporation taxes in 2026, up from £277 million (US$374 million) the previous year.
The employment impact has been equally significant. Indian businesses now employ 203,549 people across the UK, compared with 126,720 in 2025, representing a 60.6 per cent increase and making India one of the largest foreign investors supporting British jobs.
Bilateral trade between the two countries reached £47.4 billion (US$64 billion) in 2025, an increase of 11.7 per cent from the previous year, driven largely by technology, advanced manufacturing, pharmaceuticals and clean-energy sectors.
Growth among Indian firms remained robust despite a relatively weak UK economic environment. Sixty-six companies reported annual revenue growth exceeding 10 per cent, with an average growth rate of 61 per cent compared with 42 per cent in the previous edition of the Tracker. Prime Focus International Services emerged as the fastest-growing company, recording revenue growth of 1,283 per cent, while Zydus Pharmaceuticals UK reported growth of 320 per cent.
Technology, Media and Telecommunications (TMT) continued to dominate Indian investment activity, reflecting India’s global strengths in software services and digital transformation. Companies such as LTIMindtree, Wipro and Prime Focus were among the principal drivers of expansion, while pharmaceutical firms strengthened India’s presence in Britain’s life-sciences ecosystem.
The report also points to a broadening geographical footprint. While London remains the preferred destination, hosting 38 per cent of Indian-owned businesses, investment is increasingly spreading to the South of England, the Midlands and northern regions as companies seek access to manufacturing clusters, research hubs and skilled labour markets.
The data indicate that the India-UK economic corridor is evolving beyond traditional trade links into a deeper investment partnership. Although businesses continue to face challenges from rising operating costs, regulatory complexity and intense competition, the UK remains attractive because of its stable legal framework, deep capital markets and growing focus on clean energy, advanced manufacturing and digital innovation.
With nearly all Indian mid-sized firms surveyed by Grant Thornton indicating plans to expand their UK operations, analysts expect Indian investment in Britain to remain on a strong growth trajectory over the coming years, further cementing one of the world’s fastest-growing bilateral economic relationships.
