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India Services Group
Business practices and accounting and tax rules do differ between the UK and India. Both Indian businesses investing or operating in the UK and British businesses with operations in India need to understand the different regulatory environments. The India Services Group facilitates international business through communication and coordination between clients and Deloitte specialists, to provide solutions to a wide range of business issues.
The UK – India Story
In recent years, the Indian economy has moved to a higher growth phase, with growth in Gross Domestic Product (GDP) exceeding 8 per cent in the last four years. The key drivers of growth continue to be the services and manufacturing sectors. Given the underlying strengths of the Indian economy, the expected growth rate is likely to be approximately 5% is the period 2008-09, despite the current global economic downturn.
As an emerging international market, foreign investors have identified India as an attractive destination for Foreign Direct Investment (FDI). This has increased substantially from $5.5 billion in the period 2005 to 2006 to $16 billion in 2006-2007. This trend continued in 2007-2008, with the gross FDI inflows reaching $25 billion. It is projected that India will attract FDI of $35 billion in 2008-2009.
The UK is a significant investor in India with corporates such as Vodafone, Marks & Spencer and Tesco investing in the country. Despite barriers to entry that exist in some sectors such as retail and financial services, companies are still keen to form joint venture (JV) partnerships with Indian business houses into this emerging market. For example, in a JV with Reliance Retail, UK based retail giant Marks & Spencer plans to open 50 stores in India over the next five years.
For further information, download our latest report below.
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