India is the second largest investor in the U.K. in 2008 according to an annual survey conducted by Ernst & Young. Indian companies accounted for 49 projects and trailed the U.S. which accounted to 263 projects. Indian companies were able to beat France and Germany to get the second spot. The study sees Bangalore and Mumbai as the next top centers of Global investment.
“The primacy of long-established centers in the developed world, including Europe’s capitals, is being challenged by emerging Asian cities such as Shanghai and Bangalore and by regional cities acquiring international expertise,” said Marc Lhermitte, Partner at Ernst & Young and author of the report. The study also revealed that business leaders believed Shanghai and Mumbai are seen as more credible alternatives than New York and Silicon Valley or London.
The survey also revealed that London is Europe’s preferred destination for foreign investment. Even though London accounted for 262 of the 686 new projects in the U.K., foreign investment in London fell by 13 percent over the last year. Europe is seen as safe place to invest in. “The BRIC regions (Brazil, Russia, India, China) are not providing the absolutely safe ground that international investors are looking for. Europe is seen as predictable and safe,” added Lhermitte.
The U.K. retained its ranking as the most attractive European location for foreign direct investment. The U.K. attracted 686 investment projects in 2008, four percent less than in 2007. The 686 investments in the U.K. created 20,000 jobs, ranking the county as the number one location for FDI job creation in Europe.
Sources: Silicon India