London: The UK’s capital city has unveiled an ambitious new ‘Growth Plan’ to provide an estimated GBP 27 billion extra tax revenue to fund vital public services in London and across the country, with India pegged as its number one source market in terms of foreign direct investment (FDI).
The plan, unveiled recently by Mayor of London Sadiq Khan along with growth agency London & Partners, aims to restore productivity growth to an average of 2 per cent a year in the next decade, which is hoped would make London’s economy GBP 107 billion larger by 2035. India has been on a growth curve for the last three years, overtaking the US as London’s single-largest FDI source market in 2022-23 and continuing 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.
“So, it’s Indian tech companies setting up operations in London. Equally, if we look at it as a student market, post-Brexit, India has really rapidly grown as a student market. It’s now the number two source market for London after China. It’s also a fast-growing tourism market for London; India is just a really critical, top market for London,” she said.
According to official data for 2023-24, London played host to 38,625 Indian students, reflecting a steep growth curve over the past 10 years with the country’s share of all international students in London increasing from under 5 percent to over 20 percent.
“It is positive that London’s quantity of Indian students has increased in the past decade, with Indian students now accounting for over 20 per cent of international students enrolled at a London university,” said Mark Hertlien, Head of Global Engagement at City St George’s University and Chair of the International Network at London Higher, the city’s advocate for higher education.
“At City St George’s the number of Indian students joining us has doubled over recent years… They become lifelong ambassadors of our capital city and create lasting and powerful bridges between our nations,” he said.
Ashish Devalekar, Executive Vice President and Head of Europe at Indian IT major Mphasis, hailed London’s attractiveness as an innovation powerhouse and a global hub for world-leading businesses and talent.
“At Mphasis, we have steadily expanded our presence in the region over the past years, and we are now on the trajectory to double the headcount through our London Innovation Hub which we opened late last year,” said Devalekar.
“This centre is a testimony to our commitment to the UK and its vibrant tech scene and will be a focal point for developing next-generation solutions in AI, quantum computing, and beyond,” he said.
Developed with London & Partners in collaboration with businesses, trade unions and London’s communities, the London ‘Growth Plan’ sets out a blueprint to kickstart the capital’s productivity, which has flatlined since the 2008 global financial crisis. Key drivers to deliver the plan’s growth ambitions include a renewed focus on nurturing world-class talent, helping Londoners get the skills they need for productive careers, backing business innovation with new investment and technology, taking a bolder approach to housing and infrastructure, and reinvigorating the city’s local high streets.
“This growth plan provides a golden opportunity to turbocharge growth and unlock London’s full potential – for the benefit of all Londoners and the whole country,” said Sadiq Khan.
“It’s a blueprint for how we can help to create 150,000 good jobs, build more affordable homes, deliver major new transport upgrades and skill up Londoners for the well-paid jobs of tomorrow. From AI, life sciences and climate tech to our financial and creative industries, London is home to many of the best businesses in the world, which we want to back to grow and thrive over the next decade,” he said.
The plan aims to achieve a 20 percent rise in the household weekly income of the lowest earning 20 percent of Londoners – which would mean more than a million London households would have an extra GBP 50 to spend each week, on average, after paying for housing costs.
