Overview
- The UK hosted 853 foreign direct investment (FDI) projects in 2024, a 13% decline from 2023, maintaining its position as Europe's second-largest FDI destination behind France.
- Indian investment accounted for half of all Indian FDI into Europe, supported by a UK-India trade deal that reduced tariffs and introduced tax exemptions for Indian professionals.
- US investment in the UK dropped by 7% in 2024, while overall European FDI fell 5% to a nine-year low of 5,383 projects.
- The UK government has secured commitments from pension funds to invest tens of billions of pounds in domestic infrastructure to attract future FDI.
- Key sectors for UK FDI in 2024 included technology, transport manufacturing, and aerospace, with projects like Infosys' AI lab in London highlighting continued interest in innovation.