United Kingdom, India Relations: FDI and Trade

India is a promising power at present era and it remains a hugely attractive investment intention for other investors. According to United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2015, India acquired ninth slot in the top 10 countries attracting highest Foreign Direct Investment (FDI) in 2014. India has emerged as the ninth-most attractive FDI destination in the world. India attracts nearly 3% share of global foreign direct investment (FDI) of US$1.23trn. FDI inflows into India have grown by around 18% since 2000-01. With investments crossing US$ 34bn in 2014-15, India has emerged as the ninth-most attractive FDI destination in the world. This is the motive, it is destination for British companies and several of them are now household names in India. They are doing business in the country for several decades. UK companies find India an attractive investment destination because of the huge domestic market. From the survey of 77 British companies, 86% said India’s large and growing market is an attraction for investment. UK is the 3rd largest inward investor in India, after Mauritius, and Singapore with a cumulative equity investment of US $22.56 billion (April 2000- September 2015). UK ranks first among the G20 countries and accounts for around 9% of all foreign direct investment into India for the period April 2000 September 2015. Foreign Direct Investment in the last five years has dropped from US$7.8 billion in 2011-12 to US$1. This paper will try to deeply analyze the FDI flow between India and UK within the time period of 2012-2014. For the purpose we will use primary and secondly sources for analysis.