London, Dec 10 (PTI) UK companies have expanded their footprint in India with a collective turnover of Rs 5,693 billion and a workforce of 552,902 employees over the past year as they tap into new growth unlocked by the Free Trade Agreement (FTA), according to an annual analysis released on Wednesday.

The fifth edition of the ‘Britain Meets India’ (BMI) 2025 report, by Grant Thornton Bharat and the Confederation of Indian Industry (CII), identified 794 UK-owned or controlled companies operating in India, compared to 667 last year.

Of these, 146 high-performing companies meet the criteria for an exclusive ‘Growth Tracker’, featuring companies with annual revenues exceeding Rs 500 million, year-on-year revenue growth of at least 10 per cent, and a minimum two-year filing track record with India’s Ministry of Corporate Affairs.

“The India-UK corridor is entering a pivotal phase of scale, innovation and partnership,” said Pallavi Bakhru, partner and head of the India-UK Corridor at Grant Thornton Bharat.

“With 794 UK companies now operating in India and strong representation in high-growth sectors, the BMI 2025 findings reflect deepening economic engagement. The signing of the India-UK Free Trade Agreement will unlock new opportunities across advanced manufacturing, clean energy, digital trade and emerging technologies, driving growth, jobs and sustainability for both economies,” she said.

The India-UK Comprehensive Economic and Trade Agreement (CETA), signed during Prime Minister Narendra Modi’s UK visit in July, is expected to significantly enhance the 44.1-billion-pound bilateral trading partnership once it is ratified by the British Parliament in the New Year.

“The formalisation of the FTA marks a significant step forward, bringing together the UK's expertise and India's scale to create globally competitive hubs across emerging sectors, including AI, FinTech, critical minerals processing, aerospace, defence, and biotechnology," said CII director-general Chandrajit Banerjee.

“Harmonised regulatory frameworks in healthcare and digital technologies can reduce duplication, lower costs and enable greater MSME participation from both countries. With sustained innovation, investment and partnership, India and the UK can jointly develop solutions of global relevance," he said.

This year’s ‘Growth Tracker’ companies recorded an average growth rate of 49 per cent, signalling steady expansion across sectors.

Business services remained the largest contributor at 19 per cent, followed by industrial products (18 per cent), financial services (14 per cent), technology (12 per cent), and energy & natural resources (11 per cent).

Maharashtra and Delhi NCR continue to be the most significant hubs for UK companies, collectively hosting 67 per cent of all high-growth UK firms.

Micro, small and medium enterprises (MSMEs) continue to shape the India-UK corridor, with 58 per cent of UK firms in India classified as MSMEs under the revised 2025 definition.

India’s MSME ecosystem, 65 million enterprises employing 280 million people — remains a major draw for UK companies seeking scale, cost-efficiency, and innovation, the BMI report notes.

Reflecting the evolution of the corridor, the report highlights India’s growing role in Global Capability Centres (GCCs).

India’s GCC sector generated 64.6 billion dollars in 2024, and over 90 UK-headquartered companies operate GCCs in the country, employing more than 100,000 professionals and driving advanced capabilities across AI, data engineering, cybersecurity, and digital product development.

Among large enterprises, Vedanta Limited leads Britain's corporate footprint in India – ranking as the largest UK-headquartered company in India by both revenue (Rs 1,463 billion) and employment (97,015 employees).

The combination of high-growth firms and large-scale employers reflects the depth and vibrancy of the UK corporate presence in India, the BMI 2025 report finds.

It also highlights the increasing alignment between India and the UK on climate action.

British International Investment (BII) continues to manage a 2.2-billion-dollar portfolio in India, with expanded commitments across renewable energy, mobility, and sustainable agriculture under its 2022-26 strategy. PTI AK SCY SCY