India is second largest job creator in Britain
Saturday, July 14, 2007
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London: Indian investment in Britain during 2006-07 created 5,130 jobs - the second largest number of new jobs created after the US, whose companies created 13,326 jobs during the year, figures with the Department of Trade and Industry reveal.
During the year, Britain recorded 1,431 investment projects from overseas companies, representing a 17 percent rise since 2005-06, and nearly 80 percent more than in 2003-04.
The US was the biggest overseas investor in Britain, with 540 projects, way ahead of second-placed France with 95. Indian companies set up 69 new projects during the year, the figures reveal.
John Hutton, secretary of state for business, enterprise and regulatory reform, said: "For the fourth consecutive year, the UK has attracted a record number of investment successes, maintaining its position as the largest recipient of foreign direct investment in Europe and second only to the US world-wide.
"From Siemens to Amgen, Sega to Airbus, the UK has won projects from world-class overseas companies - proving we can compete on the international stage, despite increasing competition and the challenges of globalisation.
"Increased headquarter projects and the growing number of expansions from existing investors suggest companies are recognising, and capitalising on the UK's 'multiplier effect'. Not just an investment destination, the UK acts as their catalyst for global growth."
Services, with the financial and IT sectors to the fore, accounted for over a third of the new jobs, with manufacturing, R&D and distribution following. The figures, published by UK Trade and Investment, demonstrate the increasing importance of India and China to the British economy.
Foreign Secretary David Miliband said: "Established economies continue to be a very important source of FDI for the UK, yet increasingly we are seeing more investments and projects from the high growth economies.
"Over the next decade, our economy is expected to grow by roughly 25 percent, while China and India will triple the size of their economies and boast over 40 percent of world growth. These are compelling statistics which we ignore at our peril and underline the significant potential for targeted UK engagement in these markets."
Digby Jones, minister for trade and investment, said: "The flexibility of British business is a key strength but we face tough competition and cannot be complacent.
"This year's growth in financial and business services will boost the UK's knowledge economy, while increased investments in the areas of life sciences, software and computer services and ICT will bring added innovation and creativity to our skills base, helping to maintain our competitive edge."