London’s Growth Plan Positioned India as Key Source Market for Investment

London has launched a ‘growth plan’ aiming to generate £27 billion in additional tax revenue, with India identified as the leading foreign direct investment source. This plan seeks to achieve 2% average productivity growth, enhance living standards, and foster innovation in various sectors, particularly through Indian talent and investment.

London has recently introduced a significant ‘growth plan’ aimed at raising an estimated £27 billion in additional tax revenue to support essential public services. Mayor Sadiq Khan and the growth agency, London & Partners, have identified India as the leading source market for foreign direct investment (FDI), reflecting the country’s growing economic relationship with London. The objective is to enhance productivity growth to an average of 2% annually over the next decade, potentially enlarging London’s economy by £107 billion by 2035.

India has consistently shown robust economic growth, surpassing the US to become London’s largest FDI source market in the fiscal year 2022-23, a trend that has extended into 2023-24. Laura Citron, CEO of London & Partners, underscored this achievement, noting, “Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years.”

Additionally, Citron highlighted the increase in Indian students in London post-Brexit, with the country now ranking as the second largest source market for students after China. The number of Indian students is reported to have surged, reaching 38,625 in 2023-24, significantly up from less than 5% of all international students ten years ago. Mark Hertlien, Head of Global Engagement at City St George’s University, emphasized the profound impact of this student influx, stating, “Indian students now account for over 20 percent of international students enrolled at a London university.”

The influx of Indian talent is also evident in the tech sector, with companies like Mphasis appreciating London’s appeal as an innovation center. Ashish Devalekar, Executive Vice President at Mphasis, noted that “we are now on the trajectory to double the headcount through our London Innovation Hub,” showcasing the company’s commitment to the UK’s technology landscape.

Crafted in partnership with various stakeholders, including businesses and communities, the London ‘Growth Plan’ seeks to revive productivity stagnant since the 2008 financial crisis. Key focus areas include fostering exceptional talent, supporting business innovation, and enhancing infrastructure to stimulate growth. Mayor Khan stated, “This growth plan provides a golden opportunity to turbocharge growth and unlock London’s full potential.”

The plan also aims for a substantial rise in income for the lowest-earning segment of Londoners, targeting a 20% increase in weekly household income. This initiative could result in over a million households having an additional £50 to allocate each week after housing expenses, thereby amplifying the welfare of London’s residents.

Overall, London’s new growth plan, strengthened by robust ties with India, outlines a future-oriented strategy to foster economic growth, innovation, and enhanced living standards throughout the capital.

In summary, London’s ambitious growth plan is set to significantly boost the economy while recognizing India as a pivotal source of foreign investment and talent. With aspirations to enhance productivity and elevate living standards, this plan emphasizes sectoral innovation and educational opportunities, particularly for Indian students and businesses. The initiative not only aims to unlock London’s potential but also underscores the critical role of international partnerships in achieving these objectives.

Original Source: www.ndtv.com