home Advertise
With Us

68% of 635 UK companies in India are MSMEs: Grant Thornton-CII report

Out of 68 per cent UK MSMEs in India, 47 per cent were micro and small with turnover less than Rs 50 crore and 21 per cent were mid-sized enterprises with turnover between Rs 50 crore and Rs 250 crore.

UK MSMEs in India: About 68 per cent or two-thirds of the 635 UK companies in India are MSMEs with 60 per cent of them headquartered in London, according to a survey report Britain Meets India 2023 by Grant Thornton and industry body CII and supported by the UK government’s Department for Business and Trade (DBT).

These companies have a combined turnover of approximately Rs 4,888.4 billion (£51 billion) and employ around 6,66,992 people, the report noted. In 2022, the count of UK MSMEs in India was 618. The largest UK company in India by revenue was natural resources company Vedanta Ltd with a turnover of more than Rs 1,353 billion while the top UK employer was the security company G4S with around 1.35 lakh employees.

According to the report, Grand Thornton recognised 635 companies registered in India but operated directly or indirectly from the UK. The UK is home to 5.5 million SMEs, which constitute 99 per cent of all business, and 60 per cent of private sector employment in the country. Moreover, in 2019, 98 per cent of around 9,900 exporters from the UK to India were MSMEs.

Out of 68 per cent of UK MSMEs in India, 47 per cent were micro and small with turnover less than Rs 50 crore and 21 per cent were mid-sized enterprises with turnover between Rs 50 crore and Rs 250 crore.

The report comes amid the impending India-UK Free Trade Agreement. “India continues to be a large and growing economy with a burgeoning consumer base, sizable skilled workforce, and government commitment to economic development. The anticipated India-UK Free Trade Agreement (FTA) should further boost the relationship between the two countries and provide an excellent platform for further investment,” said Pallavi Joshi Bakhru Partner and India-UK Corridor Leader Grant Thornton Bharat in the report.

The largest section of the UK’s MSMEs operational in India belonged to the technology sector in terms of combined turnover of micro and small units, accounting for 23 per cent of the total followed by followed by industrial products (18 per cent), consumer, e-commerce and retail segments (13 per cent). Business services (12 per cent), media and telecom (12 per cent), and financial services (10 per cent) were other dominating sectors.

The India-UK FTA is expected to be rolled out soon. The report noted that the UK is considered to be one of India’s most important trading partners with a bilateral trade relationship worth over £35 billion. The UK has also been a major investor in India with FDI inflows of £27.4 billion between April 2000 and March 2023.