India to become top Asian investor in Britain

India is all set to become the top Asian investor in Britain surpassing Japan and China, a senior business representative of the country said in Kolkata on Friday.

Mark Dolan, deputy director in inward investment with UK Trade and Investment, said this would help India reach the top four slot among countries investing in Britain.

Britain got around 160 billion pounds of foreign direct investment (FDI) last year, he said.

Knowledge-based IT and BPO, pharmaceutical, healthcare, financial services and automotive components would be the areas for business potential for Indian companies, Dolan said.

In the first three quarters this fiscal, IT/BPO sector received 37 per cent, financial services (16 per cent), pharmaceuticals (13 per cent) and automotive components (5 per cent) of the total foreign investments in Britain, he said.

"Around 60 per cent of Indian investments in Europe come to UK. We have commissioned a study by Commonwealth Business Council to study the quantum of investments between UK and India. The report is expected by April this year," Dolan said.

As part of its policy to promote commercial and industrial strengths to step up bilateral business with India, the British government has drawn up a strategy to make UK Trade and Investment cell proactive.

The "UK Trade and Investment India Business Awards 2006" will be instituted from November in Mumbai to recognise Indian success in global business.

The selection panel for the awards comprises four Indians and is chaired by British High Commissioner in India Sir Michael Arthur.

Dolan said PriceWaterhouse Coopers has also been engaged to study the business scope in water infrastructure in India and an interim report is expected shortly.

About the most talked about Arcelor bid by Mittal Steel, he said: "The British government recognises the trend of acquisitions for increasing productivity and businesses should have no fears for acquisitions."