India's economy is expected to rise between 8 and 9 per cent annually.

The value of bilateral trade in goods and services between the UK and India in 2005 was £7.91 billion - a 20 per cent increase since 2004.

Despite this, the UK's share of the Indian market has fallen: when the process of liberalising the Indian economy began in 1991 the UK claimed a 14 per cent market share of Indian imports, by 2005 the figure had fallen to just over 2.5 per cent.

The UK is the third largest EU exporter of goods to India. Imports from India were just over £4 billion.

The UK was India's 4th largest investor in January to July 2006, following behind Mauritius, Singapore and the USA. The UK is expected to be India's number one investor this year, after Vodafone's $11 billion investment in Hutchison Essar.

There are 24 Indian companies listed on the London Stock Exchange - more than on the New York and NASDAQ exchanges combined. They include Tata, Ashok Leyland and the State Bank of India. There are 19 Indian companies listed on AIM.

Since the Indian Government eased foreign exchange controls many companies have favoured acquisition as a method of market entry.

Nearly 500 Indian companies have a base in the UK - two thirds of these are in the ICT and software sector, with pharmaceuticals companies following close behind.

Approximately 60 per cent of Indian investment in Europe comes to the UK; London has taken a 30 per cent share of this in the past five years.

India is the 7th largest source of project investment in the UK: in 2006/2007 India made 69 project investments in the UK, creating 5130 new jobs.

There was a 111 per cent increase in inward investment projects from India in the UK in 2005/2006 bringing the value of inward investment to £1.02 billion.

In India...

According to the 2005-06 Economic Survey commissioned by the Ministry of Finance India has the potential to absorb more than £79.3 billion of Foreign Direct Investment (FDI). With limited resources of its own, the Government is looking to private investors.

Mining activities are being carried out for 89 minerals, total value of mineral production in India was £8.8bn 2005-06. Mine expansion projects at a total cost of £257 million are planned. Foreign players are planning investment of around £1.8 billion in mineral plant and coal-based power generation plants.

Construction activity in India has been expanding rapidly, fuelled by the Government's decision in early 2006 to relax rules governing the sector and allow 100 per cent FDI, and lowering the minimum area for foreign building projects from 100 acres to 25 acres.

India's real estate sector is valued at £8.25 billion and ranked 12th in the world.

80 per cent of all construction activity in India is on residential projects. In the next 3 years the country will need between 20 and 30 million more household units; at the current rate of growth it will need 10 million units every year until 2030.

Commercial projects account for 12 per cent of construction activity; the IT and ITES and financial services sectors occupy 85 per cent of office space in the country

The retail sector is growing at a rate above 25 per cent. There are currently 100 shopping malls in operation; by the end of this year there will be nearly 360 and 700 by the end of 2010.

The growth rate in the tourism sector is between 20 and 25 per cent, with a 14 per cent rise in foreign tourists.

At present India has 1,777 hotels registered with the Ministry of Tourism but a 100,000 room deficit. The Ministry has approved 300 hotel projects, including 142 luxury projects with investments totalling almost £900 million.

In the health sector, 80,000 additional beds are required each year until 2012 to meet current demands.

Source: UK Trade & Investment

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