India is pumping more foreign direct investment in the UK than any other country, according to a new study.

A report from accountants Grant Thornton shows that acquisitions of UK firms by Indian companies totalled £1.52 billion in the first six months of the year.

The sale of Rover and Jaguar to Indian conglomerate put the amount invested in the UK ahead of the £930 million spent on buying US companies.

Anuj Chande, head of Grant Thornton's South Asia group, said: "Indian businesses are looking primarily to buy brands and established distribution networks."

Last month, Tata completed the buy-out of Land Rover and Jaguar from Ford in a deal worth £1.15 billion.

The deal incorporated both car brands, intellectual property rights and factories, which means Tata is now the employer of some 2,000 vehicle engineers and related staff in Merseyside.