As the British government courts global capital with promises of stability and growth, Indian billionaires are making their mark on the UK’s corporate landscape. This week alone, two major acquisitions by Indian conglomerates have sent ripples through London’s financial districts. The deals, worth a combined £3.2 billion, underscore a broader trend of Indian wealth flowing into British assets. But for those of us watching the real economy, the question is not about the billionaires’ fortunes. It is about what this means for the workers, the communities, and the industries at the heart of these acquisitions.
First, the Tata Group, already a significant player in the UK through Jaguar Land Rover and Tetley Tea, has completed the purchase of a leading pharmaceutical firm based in the Midlands. The deal promises to secure 2,000 jobs and invest in new research facilities. Then, the Adani Group, with interests spanning ports and energy, has acquired a struggling steelworks in South Wales, vowing to modernise operations and safeguard 3,500 roles. The government has welcomed these investments as votes of confidence in post-Brexit Britain. The Secretary of State for Business and Trade called them “a testament to our open economy”.
But the real story is more complex. Local unions in South Wales have expressed cautious optimism. “We’ve heard promises before,” said a regional representative for the steelworkers’ union. “We need to see the colour of their money and their commitment to our pay and conditions.” The average steelworker in the UK earns around £30,000 a year. That is below the national median wage. If these billionaires pad their portfolios while wages stagnate, the kitchen tables of Port Talbot will not feel the benefit.
Meanwhile, the agricultural sector is squeezed. Indian firms have also been snapping up agri-tech startups, raising fears over food security. A recent report from the National Farmers’ Union highlighted that foreign ownership of farmland could push up prices and outcompete local growers. With the cost of a loaf of bread rising 12% year on year, every penny counts. When the supply chain is controlled by offshore interests, the power to set prices moves further away from the British consumer.
The government’s inward investment strategy is not wrong. The UK needs capital to upgrade infrastructure and create jobs. But the nature of that investment matters. The recent deals are heavily skewed towards tax havens and complex corporate structures. Critics argue that this allows profits to be routed abroad, avoiding UK corporation tax. The Treasury’s own estimates suggest that multinational profit shifting costs the country up to £1.6 billion per year. That is money that could be spent on schools, hospitals, or social care.
There is also the human cost. Indian billionaires may bring jobs, but they also bring a track record of labour disputes. At a Tata-owned plant in India, workers recently went on strike over safety concerns. In the UK, Jaguar Land Rover has faced criticism for its use of zero-hours contracts. The unions are watching closely. The GMB has already called for binding commitments on pay and conditions as part of any deal.
For the average worker, these headlines feel distant. The cost of living crisis persists. Inflation may be easing, but prices are still high. The energy price cap remains a burden. And when billionaires buy up our steelworks and our farms, the sense of local control evaporates. The regional inequality that scars this country – with the North and Midlands lagging behind London on wages, health, and opportunity – could deepen.
Yet there is a glimmer of opportunity. The government could use these deals as leverage. It could demand that inward investment comes with strings attached: fair wages, union recognition, and long-term commitments to the local community. The Labour Party has proposed a “Takeover Code” that requires firms to consider workers and pensioners. The Tories have resisted, favouring a light-touch approach. But with an election on the horizon, the politics of foreign ownership could shift.
In the end, the story of Indian billionaires buying British is not just about the balance sheets of the super-rich. It is about whether the UK can attract capital without losing its soul. It is about whether the steelworker in South Wales will see a decent pay rise, and whether the price of bread will become affordable again. That is the real economy. And it is where our attention must stay.
