India ranks seventh in the top overseas sources of investment with 74 projects during 2013-14 a year with the highest number of projects since records began in the 1980s.
UKTI said the UK remains the most attractive destination in Europe for foreign business investment, winning almost 1,800 new projects in the past year.
Trade minister Lord Ian Livingston said it had been an "exceptional year for foreign investment", which had created 66,390 new jobs, the highest number since 2001.
"It shows that our strategy to attract investors to the UK by creating one of the most business-friendly environments in the world is the right one, and it is proof that foreign investors have confidence in the UK as the best place to do business," Lord Livingston said.
The US led the rush to invest in Britain with 501 projects in the UK, followed by Japan (116), France (110), Germany (102), Canada (89) and China (88).
Below India in the tally are Italy (70), Australia (69) and Ireland (55).
John Cridland, the director-general of the CBI, said: "Investment in Britain is flying high.
"The UK is a very strong brand overseas, and this is an engine for providing the growth and jobs we need to drive forward a healthy and sustainable recovery."
UKTI says investment rose 8 per cent to a record level of 975 billion pound and resulted in the creation of 66,390 new jobs, the highest total since 2001.
Europe provided 566 billion pounds of the total, the Americas 325 billion pound and Asia 72 billion pound.
The rest came from Australasia and Africa.
The 975 billion pound was the second-highest total of allthe countries surveyed, behind the US (2,890 billion pound), and ahead of Hong Kong (845 billion pound), France (630 billion pound) and China (560 billion pound).
The majority of the projects were in England but investments in Scotland (122), Northern Ireland (50) and Wales (79) each created or safeguarded significantly more jobs on average.