Various Indian companies have promised to invest in retail, logistics, IT, healthcare and education sectors. These deals are expected to raise the prospects of Modi’s Make in India and Digital India initiatives.
Both nations have shared investment agreements thereby helping job creations in each country. While Merlin Entertainment, Vodafone, CloudBuy and Sun Global are British companies investing in India, Tatas, Bharti Airtel, TVS, State Bank of India, India Bulls and HDFC are some of the Indian companies investing in the UK.
British Prime Minister David Cameron said: “as the largest G20 investor in India, British businesses already provide nearly 700,000 jobs in India and India invests more in the UK than in the rest of the EU combined, creating almost 8000 new jobs here last year.”
More companies to invest
Vodafone announced a further investment of Rs 13,000 crore in India. As on date, Vodafone is the largest FDI investor with a total investment sum of Rs 111,000 crore. The third largest telecom operator in India (based on market share) is looking forward to using Rs 8000 crore to upgrade its existing network and the remaining towards the Digital India initiative. Over the next two years, the telecom service provider is also expected to increase its employee base to 15,000.
The 16 year old Merlin Entertainment PLC is ready to set up its first Madame Tussauds in New Delhi India by 2017. In over ten years, it will invest up to 50 million pounds to open Legoland Discovery Centre and Sea Life Aquarium.
Partnering Apollo Hospitals, Holland & Barrett International (H&B) that sells vitamins and health supplements, has promised to invest 20 million pounds in India. H&B owns over 1000 stores in the United Kingdom, Republic of Ireland, UAE, China, Singapore, Spain, Malta, Cyprus and Gibraltar. Now it plans to expand into India. The first store is slotted for launch in January 2016 with 115 outlets to be opened by the year end.
On the energy front, OPG Power Ventures PLC has proposed to invest 2.9 billion pounds for producing 1000 MW of solar power and 3200 MW of other renewable energy as well as thermal energy with base in Tamil Nadu. OPG already has power plants in Tamil Nadu and Karnataka.
Apart from these, Kings College London in partnership with Indo-UK Healthcare Pvt Ltd, may set up a hospital in Chandigarh.
Indian majors’ investment in the UK
From the Indian front, telecom giant Bharti Airtel has intended to issue its first sterling bond of upto 500 million pounds to be listed on the London Stock Exchange. The potential bond issue is subject to market conditions and will help Bharti extend maturities and diversify investor base on its debt portfolio.
In collaboration with London Stock Exchange, State Bank of India (SBI) has proposed to create the ‘FTSE-SBI India Bonds Indices’ to be used initially by a new investment fund managed by the latter. Facilitating investment into India’s bond markets, this fund is expected to be unveiled in the first half of 2016.