$2 billion investment, 76 new projects, and 1,449 new jobs: this was the contribution to the total inbound investment into the U.K., from the Indian companies endeavouring to turn global. Indian foreign investment projects into the U.K. increased by 110% in 2005-06, ranking India as the third largest foreign investor in the U.K. globally, and the second largest from the Asia Pacific region. While releasing the '2005-06 U.K. Investment Review Report', Mr. Mark Dolan, U.K. Trade & Investment Deputy Director India, Inward Investment, said: "The flow of Indian investment to the U.K. has turned from a trickle in the late 1990s to a flood, with the scope and breadth of projects rapidly expanding. While ICT remains the dominant sector for investment, there was strong growth in investments in pharmaceuticals and engineering. The growth in Indian investment was also driven by the forces of globalisation and market liberalisation as Indian companies ventured abroad for new opportunities, markets and sources of growth, skills and technology."

In 2005-06, 1,217 foreign companies from around the world invested in the U.K.—a 14.3% increase over the previous year. While the U.S. was the top investor with 446 projects, Japan with 84 projects and India with 76 projects were running neck and neck to rank as number two and number three.
This inward investment into the U.K. has not only offered the Indian investors a global base, but also helped the local economy by creating new jobs in the U.K. For example, HCL Technologies, the fifth largest Indian IT group, has so far created local employment of more than 2,000 people in the U.K., making a tangible difference to the local economy. Nicholas Piramal India Limited (NPIL), one of the top five Indian pharmaceuticals companies, today employs more than 650 people in the U.K. through its two acquisitions in 2005, and the recent acquisition of a manufacturing plant from the world's largest drug maker Pfizer Inc.

While India Inc. is now emerging as a global investor, India itself is becoming more and more attractive for the global investors. Global consultancy firm Ernst and Young (E&Y) has ranked India as the fourth most attractive investment country and the most preferred location for call centre and back office activities in its recent survey. While China was the preferred country for the manufacturing operations with 18% votes, India emerged as the top choice for call centre and back office operations with 14% votes.

There was, however, a warning signal too in the report for the Indian (Business Process Outsourcing) BPO companies. Although India remained on the top as the preferred choice for call centre and BPO activities, the findings of the survey indicated 8% fall in India’s attractiveness in this regard. Despite this decline, India remained way ahead of Germany, U.S./Canada who followed India with 11% share.
India’s overall rating in 2006 remained at par with the previous year. U.S. and China were the two most preferred investment destinations, according to the E&Y survey. The survey has, however, indicated a cooling off of China's attractiveness, to the benefit of more mature locations such as Western Europe. The survey ranked India fifth for research and development centres, to be placed after U.S./Canada, Germany, the U.K. and France.

Reliance Communications Ltd. (RCL), the largest CDMA mobile operator of India (Earlier known as Reliance Communication Ventures Ltd.), has obtained shareholder’s approval for a sponsored American Depository Receipts (ADR)/ Global Depository Receipts (GDR) program for an amount up to $1 billion (Rs. 4,500 crore). The company also has an option to retain additional equity shares for the purpose of over allotment, not exceeding 20 per cent of the offer size. While the overseas listing certainly gives an international exposure to the company, the total foreign shareholding in the company can’t exceed 74%, as per the Indian laws governing the telecom sector.  The company has also obtained shareholder’s approval for an amalgamation program, under which nine subsidiaries and group companies would be merged with Reliance Communications Ltd. The nine companies to be merged with RCL are Reliance Infocomm, Reliance Communications Infrastructure, Reliance Communications Solutions, Reliance Software Solutions, Reliance Communications Technologies, Ambani Enterprises, Reliance Business Management, Formax Commercial and Panther Consultants.

The company, however, has not included its wholly owned GSM mobile subsidiary Reliance Telecom Ltd. (RTL) in the merger program, apparently keeping the option of selling some stake in this subsidiary open. Some foreign telecom companies looking for a foothold in the fast-growing Indian telecom sector, as well as private equity firms are reportedly interested in picking up some stake in RTL, which offers GSM mobile services in eight Indian states.

The Government of India has decided to invite the private sector to participate in the development of civil aviation infrastructure across the country. It has announced taking up the modernisation of 35 non-metro airports at a cost of $1.50 billion to $1.75 billion (Rs. 7,000 crore to Rs. 8,000 crore) using the public-private partnership (PPP) model. The Government of India has already awarded the modernisation work at the airports of Delhi and Mumbai to private parties.

While the government-owned body Airports Authority of India (AAI) will be responsible for development of the aeronautical aspect of the airports, the modernisation work for upgrading the city-side facilities such as hotels, shopping centers, restaurants, car parking, cargo-handling system etc., will be done with private participation. The private participation for the city-side development will be capped at 74% with a foreign direct investment (FDI) limit of 49%. The remaining equity will remain with AAI. The government is looking at starting the modernisation work this year itself, with a target to complete the work by 2009. The Ministry of Civil Aviation wants to take up the issue on priority basis, as the domestic passenger traffic in the first quarter of 2006 has shown a significant increase of 49%. The bold initiative by the central government, however, is expected to face tough resistance from the communist parties lending their support to the Congress-led ruling coalition United Progressive Alliance (UPA).