Last week in a nutshell
More and more Indian businessmen are buying UK companies like they’re shopping for groceries! With over 900 Indian-owned companies in the UK. Giants like Reliance Industries and Tata Group are leading this. Keep scrolling for the full story.
The future of Indian job security
By 2030, 1 out of 5 working-age people on Earth will be Indian! This means we need to create at least 11.5 crore jobs by 2030 to both absorb underutilised working and incoming labour force. If you do the math we need to generate 1.65 crore jobs per year, of which 1.04 crore will need to be formal jobs.
Looks like the government won the lottery
In an interesting turn of events, the RBI decided to transfer a record surplus of ₹2.11 trillion to the government for 2023-24. Why’s the surplus transfer so huge? It could be because the RBI has accumulated substantial profits due to favourable market conditions, robust economic performance, or effective monetary policies.
Revenge for the Kohinoor
Indian companies are making big moves in the UK.
Despite being a developing economy with a $3.3 trillion GDP, Indian firms are investing heavily in the UK, known for its financial clout, tech advancements, and stable market.
So, who’s leading the reverse colonialism?
Giants like Reliance Industries and Tata Group are leading this. Reliance has snapped up Faradion Limited, a battery tech leader, and the famous British toy retailer Hamleys. They also bought Stoke Park, a well-known British hotel, in 2021.
Tata Group's key acquisitions include Tetley tea in 2000 and the iconic Jaguar and Land Rover from Ford. They recently announced a €4 billion investment in a UK Gigafactory to produce batteries for Jaguar Land Rover, creating 4,000 jobs.
By 2021, India had become the UK's second-largest source of foreign direct investment, creating thousands of jobs and supporting nearly a thousand Indian-owned businesses. Some call this "reverse colonialism," highlighting the significant influence Indian companies now have in the UK.
But how does investing in the UK benefit India?
- Job creation: Acquiring a foreign company allows for expansion which may require additional manpower.
- Technology transfer: For example, by acquiring Jaguar Land Rover, The Tata Group taps into advanced automotive technology. This technology can then be brought to India.
- Stronger trade relations: As Indian companies invest in the UK, they bring in revenue, which contributes to a favourable trade balance.
- Revenue stream: The revenue generated can be used to buy more companies overseas, or bring it back to India, presenting another form of capital.
