The UK is the second most common destination for foreign direct investment (FDI) in Europe, a report from Ernst & Young has said. London did regain its standing as the most popular European city after being overtaken by Paris the year before, but lost the top national spot again to France. In total, the UK obtained 975 projects last year compared to 930 in Germany but ten behind France and 12 per cent down on 2019’s figures.

As to be expected, the US remains the UK’s biggest source of foreign investment, but perhaps more interestingly, the UK is also the most popular global location for Indian FDI; securing more than 50% of the projects they generate in Europe. As the sixth largest economy in the world, due to be the third biggest by 2031, Britain is set to continue benefitting from India’s emergence as an economic powerhouse – which is particularly vital after leaving the European single market. It is no wonder that a free trade agreement between the two countries is a priority for both Government’s.

At the forefront of British investors minds are the Indian sectors at the forefront of the subcontinent’s rapid digitalisation- namely FinTech, pharmaceutical, and the thriving startup ecosystem:

13,799,000 Brits who choose India and the emerging markets as their top investment choice
19% would invest in start-ups
29% would invest in fintech
Over two-thirds (35%) choose biotech and pharmaceuticals sectors
Nearly half (45%) want to invest in GreenTech and sustainability