UK businesses felt that ease of doing business in India is improving. The number of companies from UK that felt that corruption is a barrier to doing business in India halved to 25% in 2018 from 51% in 2015, according to survey.
The main reason was the drive to digitalise government interactions which reduces face-to-face interactions (where corruption is most likely to take place). The UK India Business Council carried out an in-depth survey of businesses with a combined turnover of $ 122 billion and reported the findings in a report called ‘Doing Business in India.’
The research collected opinions from over 100 UK businesses operating in India.
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Other findings
- About 46% of UK businesses planned to expand their investments in India in the next 12 months.
- Moreover 25% of those responding intend to direct this new investment eastwards – seeking new opportunities in states such as West Bengal, Assam, Meghalaya, and Manipur.
- The roll-out of GST contributed to improving operating environment
- Of the 17 indicators for improvement maximum progress was being made in quality infrastructure and telecommunication facilities.
- However, ‘quality of bureaucracy’ saw little improvement. About 47% of respondents cited quick approvals and effective bureaucracy as one of the most important factors when deciding where to invest.
Richard Heald, OBE (Chief Executive of UKIBC) reflected that, “This report not only highlights the state of the UK-India trade and investment relationship, it also underscores the positive steps being taken to make India a valued partner and destination of UK businesses. If anything, the improvements in ease of doing business further highlight the scale and geographic range of the opportunities for UK businesses within supply chains and across sectors. With BREXIT imminent, India represents an increasingly important and increasingly attractive market.”
There is, of course, still room for improvement in important areas.
Since 2000, the UK has been the largest G20 investor in India, investing £17.5 billion and creating 371,000 new jobs, representing 10 percent of all FDI-related jobs in that period. British companies in India now employ almost 800,000 people, representing an impressive 1 in 20 jobs in India’s organised private sector.
This is the fourth annual study on ‘Doing Business in India’ by the UK India Business Council and will be the last prior to India’s General Election in 2019.
(with inputs from ANI)