London Launches 'Growth Plan' with India as Key FDI Partner
New Delhi (The Uttam Hindu): The UK capital has unveiled an ambitious new "Growth Plan," aimed at generating an estimated GBP 27 billion in additional tax revenue to fund vital public services both in London and across the country. India has been identified as the top source market for foreign direct investment (FDI), playing a pivotal role in the plan's growth strategy.
Launched by the Mayor of London, Sadiq Khan, alongside London & Partners, the plan aims to restore productivity growth to an average of 2 percent annually over the next decade. If successful, the plan is projected to make London's economy GBP 107 billion larger by 2035. India has been a significant contributor to this growth, overtaking the US in 2022-23 as London's largest source of FDI, a trend that has continued into 2023-24.
"Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years," said Laura Citron, CEO of London & Partners. Indian tech companies setting up operations in London, coupled with the rapid growth of Indian students, tourism, and business expansion, are critical drivers of this success.
India has become a major student source market for London post-Brexit, now ranking as the second largest source of international students after China. In 2023-24, 38,625 Indian students were enrolled in London’s universities, accounting for over 20 percent of all international students. Mark Hertlien, Head of Global Engagement at City St George's University, highlighted the growing presence of Indian students, noting that their numbers have doubled in recent years.
In addition to education, India’s business presence in London is expanding. Ashish Devalekar, Executive VP at Indian IT firm Mphasis, emphasized London’s role as a global innovation hub. The company’s London Innovation Hub, opened in late 2023, is set to double its workforce, focusing on next-generation solutions in AI, quantum computing, and more.
The London Growth Plan, developed in collaboration with businesses, trade unions, and local communities, sets out a blueprint for revitalizing the city’s productivity, which has stagnated since the 2008 global financial crisis. Key drivers of this growth include fostering world-class talent, supporting business innovation, improving housing and infrastructure, and enhancing local high streets.
Mayor Sadiq Khan expressed that the Growth Plan offers a significant opportunity to accelerate London’s growth and unlock its full potential. "This is a blueprint for creating 150,000 good jobs, building more affordable homes, delivering major transport upgrades, and equipping Londoners for well-paid jobs in sectors like AI, life sciences, and climate tech," he said.
One of the plan’s key goals is to increase the weekly household income of the lowest earning 20 percent of Londoners by 20 percent, benefiting over a million households. This would result in an average of an additional GBP 50 per week for these households, after housing costs.
The plan underscores the importance of India as a strategic partner in London's future growth, with Indian investment and talent playing a vital role in shaping the capital's economy in the years to come.
