Bangalore: Investment from Indian businesses in to the UK have gone up nearly 30 per cent during the 2004-5 fiscal year, reaching a record level, a UK Trade & Investment review report of 2004-5 says.

The rise demonstrates the UK's position as the leading investment location in Europe for businesses from India, one of the world's fastest growing economies. The UK is experiencing strong interest from Indian investors because there is a growing awareness of the country as an ideal place for dynamic Indian businesses to grasp new opportunities, technologies and markets in an open and cost-effective environment, the report said. Globalisation and recognition of the UK as an ideal high-technology location for dynamic companies is driving Indian investments.

"As the Indian economy continues to grow we have been able to attract investments from across a broad range of sectors, while ICT remains strong we have also had significant wins in food and beverages, pharmaceuticals and engineering segments," the review notes.

According to the investment review report, Indian companies invested in 36 new projects into the UK in the year 2004-05, up from 28 the previous year. This is nearly a 30 per cent increase and the highest ever-Indian investment inflow into the UK. Investments from India have been rising over the past five years, up from 21 in 2000-01.