London’s Growth Plan Positions India as Leading Source of FDI
London has launched a ‘growth plan’ to increase tax revenue by £27 billion, with India identified as the main source of foreign direct investment. The plan aims to boost productivity, support public services, and improve the economic landscape over the next decade. It seeks to generate 150,000 jobs and enhance household incomes for low earners, with a strong focus on innovation and infrastructure.
London has launched an ambitious ‘growth plan’ aimed at generating an additional £27 billion in tax revenue to support vital public services across the city and the nation. Announced by Mayor Sadiq Khan and London & Partners, the initiative aspires to increase productivity growth to an average of 2 percent per year over the next decade, potentially expanding London’s economy by £107 billion by 2035.
India has become the foremost source market for foreign direct investment (FDI) in London, surpassing the United States in 2022-23 and maintaining this status in 2023-24. Laura Citron, CEO of London & Partners, stated, “Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years.” This investment is driven by Indian tech companies establishing operations in London, alongside a notable increase in Indian students and tourists visiting the city.
Official data reveals that London hosted 38,625 Indian students in 2023-24, marking a significant rise over the past decade with Indian students now accounting for over 20 percent of all international students in London. Mark Hertlien, from City St George’s University, remarked on the growing presence of Indian students, asserting that they create enduring connections between the two nations.
The attractiveness of London as a global innovation hub is further illustrated by Ashish Devalekar, Executive VP at Mphasis, who emphasized his company’s commitment to expanding in London. He stated, “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.”
Designed with the collaboration of local businesses and communities, the London ‘Growth Plan’ aims to revive productivity stagnation observed since the 2008 financial crisis. It outlines initiatives to develop talent, promote career skills, support business innovation, enhance housing and infrastructure, and revitalize high streets. Mayor Khan expressed optimism about the plan, calling it a “golden opportunity to turbocharge growth and unlock London’s full potential.”
The overall objective of the plan includes generating 150,000 quality jobs and increasing household income for the lowest earning 20 percent of residents by 20 percent, translating to an additional £50 weekly for over a million households, after housing costs.
In summary, London’s newly introduced ‘Growth Plan’ seeks to harness India’s burgeoning role as a major source of foreign direct investment while addressing productivity and economic growth. This initiative aims to create high-quality employment opportunities, increase income for the lowest earners, and foster collaborative efforts among businesses and communities. By focusing on innovation and local development, the plan aspires to ensure a thriving economy for London and the broader UK.
Original Source: www.ndtv.com
