India, with 108 FDI projects (up 44% from last year) has not only replaced Japan as the largest Asian supplier of FDI projects in the UK, but has also leapt forward from seventh place last year to being the second largest source of investments overall in the UK this year, second only to the US. Indian projects created 4,139 new jobs in the UK, 30% more than the next highest job creator.

Investment from India increased across a range of sectors including IT, life sciences, and advanced engineering sectors and was a mix of acquisitions and expansions. Last year saw HCL purchase Axon at ?450million and ONGC acquiring Imperial Energy at more than ?1bn. Biocon established its European headquarters in the UK and Dr. Reddy?s acquired a clinical trials unit. In communications, GTL Europe opened four new offices in the UK, in engineering Dynamatic Technology continued to expand, and in the IT sector new companies chose to invest in the UK as a springboard to international growth. In a release, the British Deputy High Commission said these findings are based on the UK inward investment results 2008-09 announced by the British Business Secretary Lord Mandelson and Trade, Investment & Business Minister Lord Davies.

Vicki Treadell, British Deputy High Commissioner, Western India, said: ?As the UK government?s representative based in Mumbai, India?s commercial capital, I am delighted that the figures confirm that Indian businesses have agreed with our proposition that the UK, with its open, liberal economy, creativity, innovation and strong R&D, provides an excellent global platform from which to operate?.

Creon Butler, Acting High Commissioner, British High Commission, New Delhi said, ?The results illustrate that Indian investorshave confidence in the UK economy?.

Meanwhile, the release said defying the world economic downturn, the UK has maintained its position as the number one destination for foreign investors in Europe, and second in the world, as demonstrated by the UK inward investment results 2008-09 announced by the British Business Secretary Lord Mandelson and Trade, Investment & Business Minister Lord Davies on Wednesday.

The UK is being seen as an attractive commercial destination by more nations than ever before. Over the last financial year (2008-09), foreign direct investment (FDI) in the UK has risen by 11% with 1,744 investment projects from 53 countries deciding to locate or expand in the UK. Every day the UK attracts nearly 5 FDI projects. Every week 673 jobs are created.