UK bosses eye China and India

(Bloomberg News)

Emerging markets such as India and China are expected to generate a greater share of growth for UK companies over the next two years, while Western Europe's contribution is expected to slip to less than 50 per cent from 64 per cent during the downturn.

Twenty-nine per cent of UK companies see China and 16 per cent see India as a key source of profitable growth over the next two years, according to a survey by Ernst & Young.

Just 15 per cent of growth is expected to stem from the US and Canada, compared with 24 per cent during the downturn. The mood among UK businesses is in contrast to the global trend, with an average of 60 per cent of global businesses citing developed markets as their most likely source of profitable growth over the next two years.

In terms of timing, 55 per cent of UK respondents said it would take them 18 months or more to break into a new market.