Difficulty: Easy
Correct Answer: Vodafone
Explanation:
Introduction / Context:
Cross border investments between India and the United Kingdom include notable acquisitions and large equity stakes in various sectors. On the Indian side, the Tata–Corus deal is often cited as one of the largest Indian investments in the United Kingdom. Conversely, there has been a significant investment by a British company in the Indian telecommunications sector that is widely recognised as the United Kingdom's largest investment in India. This question asks you to identify that investment from the options given.
Given Data / Assumptions:
Concept / Approach:
Vodafone, a major British telecommunications company, made a landmark investment in India when it acquired a controlling stake in Hutchison Essar, an Indian mobile services provider. This deal represented one of the largest foreign direct investments in India and is often described as the biggest investment by a British company in the Indian market. Idea is an Indian telecom brand, Tetley is a tea company already acquired by Tata, and Allianz is an insurance group with a different scale of operations. Therefore, Vodafone is the best match for the description in the question.
Step-by-Step Solution:
Step 1: Consider the major British companies present in India and recall which of them has made very large investments.
Step 2: Remember that Vodafone acquired a significant stake in Hutchison Essar, which was reported as one of the largest single foreign direct investments in India.
Step 3: Compare this with Idea, which is primarily an Indian operator, and Tetley, which was acquired by Tata rather than being a recent large UK investment into India.
Step 4: Note that Allianz operates in insurance and asset management but its scale of investment in India has not been highlighted as the largest UK investment in the country in exam oriented materials.
Step 5: Conclude that Vodafone is the correct answer.
Verification / Alternative check:
You can verify this by recalling business news that emphasised the size and impact of Vodafone's entry into India, both in terms of the deal value and its effect on the telecom sector. The acquisition of Hutchison Essar by Vodafone was repeatedly mentioned as a landmark foreign investment. Comparative questions that mention Tata–Corus on one side often pair it with Vodafone's India investment on the other, reinforcing the connection in general knowledge resources.
Why Other Options Are Wrong:
Idea is an Indian company that eventually partnered with Vodafone in a merger, but it is not itself the United Kingdom's investment in India. Tetley is a British tea brand that was bought by Tata, meaning this was an Indian investment in the United Kingdom rather than the other way around. Allianz does invest in India but its stake sizes and deal values have not been positioned in general knowledge material as the largest UK investment in India. Therefore, none of these options matches the specific business fact described in the question.
Common Pitfalls:
A frequent source of confusion is mixing up which direction the investment moved in. For example, Tetley is sometimes incorrectly thought to represent UK investment in India because of its British origins, even though the deal in question was Tata buying Tetley. Another pitfall is not distinguishing between joint ventures and headline making acquisition deals. Recognising Vodafone's acquisition of Hutchison Essar as a major British investment helps avoid these mistakes.
Final Answer:
The United Kingdom's largest investment in India, often mentioned in comparison with the Tata–Corus deal, is by Vodafone.
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