India emerges as the leading source of foreign direct investment in London’s ambitious growth strategy
London has launched a comprehensive growth plan aiming to generate £27 billion in tax revenue while positioning India as its top foreign investment partner. The plan targets an economic expansion of £107 billion by 2035, reported timesofindia.indiatimes.com.
India’s increasing investments in London, particularly in the tech sector, have made it the city’s leading contributor to foreign direct investment (FDI) for two consecutive years.
The plan, unveiled by Mayor Sadiq Khan and London & Partners, focuses on restoring productivity growth to 2 percent annually over the next decade. India’s contribution to London’s FDI has surpassed that of the United States since 2022-23, a trend that continued through 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. She highlighted the growing presence of Indian tech companies in the city and the surge in Indian students and tourists.
Indian Student Boom in London
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Official figures for 2023-24 show that 38,625 Indian students are studying in London, accounting for over 20 percent of the city’s international student population—an increase from under 5 percent a decade ago
Mark Hertlien, head of global engagement at City St George’s University, emphasized the positive impact of this growth. “Indian students have doubled at our university in recent years. They become lifelong ambassadors of our capital city and create lasting bridges between our nations,” he said.
Driving Economic Revival
The Growth Plan, developed with input from businesses, trade unions, and local communities, aims to revive London’s economy, which has remained sluggish since the 2008 financial crisis. Key priorities include:
- Investing in skills and talent to create high-paying jobs.
- Supporting business innovation through technology investment.
- Accelerating housing and infrastructure development.
- Revitalizing local high streets to boost community economies
Sadiq Khan described the plan as a “golden opportunity” to unlock London’s full potential.
“It’s a blueprint to create 150,000 good jobs, build affordable homes, and deliver major transport upgrades. From AI and life sciences to climate tech, we want to back the best businesses to grow and thrive,” Khan stated.
One of the plan’s core objectives is to increase household incomes for the lowest-earning 20 percent of Londoners by 20 percent—potentially providing over a million households with an extra £50 per week after housing costs.
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