India-UK economic partnership strengthens with sharp growth in company numbers, turnover and employment following landmark trade agreement
Indian-owned companies in the United Kingdom recorded a landmark year in 2026, with the number of firms operating in the country rising by almost 60 per cent year-on-year, according to the latest India Meets Britain Tracker 2026.
The annual report, led by Grant Thornton and launched in London by Indian High Commissioner P Kumaran, found that 1,912 Indian-owned businesses are now operating in the UK. Together, they generated a combined turnover of £105.77 billion, up significantly from £72.14 billion recorded by 1,197 firms in 2025. Employment figures also rose sharply, increasing from 126,720 to 203,549 workers.
The findings come amid growing economic cooperation between the two countries. Bilateral trade reached £47.4 billion in 2025, representing an 11.7 per cent annual increase during the year in which the India-UK Comprehensive Economic and Trade Agreement (CETA) was signed.
Speaking at the launch, Kumaran described the relationship as increasingly driven by economic opportunity, highlighting the complementary strengths of both nations in areas such as innovation, finance, talent and advanced industries
Industry leaders said the trade agreement is expected to further boost investment and commercial activity once fully implemented. According to the report, many Indian mid-market firms are planning expansion in the UK, while British companies are also looking to India as a key growth market. Technology, clean energy and advanced manufacturing are expected to be major beneficiaries.
The report found that 66 companies achieved annual revenue growth of at least 10 per cent, with an average growth rate of 61 per cent. Technology, media and telecommunications remained the leading sector for Indian investment, followed by manufacturing and pharmaceuticals. London continued to attract the largest share of businesses, although regional growth across the UK also strengthened.
Despite challenges including rising costs and regulatory complexity, the report concluded that the UK’s stable business environment and focus on digital technology and clean energy continue to offer strong long-term opportunities for Indian investors.
