This is the highest in Europe and the third in the world after the United States and China
The UK on Wednesday said it has maintained its position as the number one destination for FDI in Europe after attracting a record number of projects from over 70 countries including India, bringing in the largest financial value and associated jobs over the past year.
Investment from India increased by 65 per cent, making it the UK's third largest source of FDI accounting for over 9,000 new and safeguarded jobs.
The annual investment figures from UK Trade and Investment (UKTI) for 2014-15 show Britain attracted 1,988 FDI projects - 12 per cent more compared to 2013-14, estimated to have brought with them almost 85,000 new jobs and 23,000 safeguarded jobs across the UK.
The UK's strong performance during 2014 has seen the country's inward FDI stock - the value of accumulated FDI in the UK - break the 1 trillion pound-level for the first time.
This is the highest in Europe and the third in the world after the United States and China.
UKTI statistics show that "FDI into the UK came from more than 70 countries, including the world's leading emerging markets".
The US remains the largest source of inward investment, with a total of 564 projects in 2014/15, followed by France (124 projects).
There was also evidence of a strengthening relationship with China with 112 projects, including 13 from Hong Kong, in 2014-15 resulting in almost 6,000 new and safeguarded jobs.
Prime Minister David Cameron said: "The scale of foreign investment is a huge success story which shows that Britain is the place to do business and is more evidence that our long term economic plan is working.
"Securing investment from overseas is a key part of our One Nation policies to create thousands of jobs, provide security and opportunities for working people throughout the UK."
Trade and Investment Minister Lord Maude said: "2014 was an exceptional year for UK inward investment and we are proud to be bucking the global trend.
"The UK is a great place for entrepreneurs and corporations to put their energy, their ideas, their money and their talents to work. The Government will continue to work hard to attract investment from across the globe to further strengthen the UK economy."
