London has announced a growth plan projected to yield an additional £27 billion in tax revenue and restore productivity growth to 2 percent annually. India has emerged as the top source market for foreign direct investment (FDI), surpassing the United States. The plan aims to improve living standards, support innovation, and strengthen the economy by 2035, with a focus on Indian students, businesses, and technology.
London has disclosed an ambitious new growth plan aimed at generating an additional £27 billion in tax revenue to bolster essential public services throughout London and the UK. Mayor Sadiq Khan, in collaboration with the growth agency London & Partners, seeks to restore productivity growth to 2 percent annually over the next decade, potentially increasing London’s economy by £107 billion by 2035.
In recent years, India has experienced significant growth, becoming London’s largest source of foreign direct investment (FDI) in 2022-23 and maintaining this status into 2023-24. Laura Citron, CEO of London & Partners, noted, “Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years.”
Citron further explained that Indian technology companies are establishing operations in London, contributing to a rapidly expanding student market. Post-Brexit, India has emerged as the second-largest source of international students in London, behind China, significantly impacting tourism as well.
Official 2023-24 data reveals that 38,625 Indian students are now enrolled in London, marking a significant increase in their share of the international student population from under 5 percent to over 20 percent over the last decade. Mark Hertlien, Head of Global Engagement at City St George’s University, remarked on this growth, stating, “It is positive that London’s quantity of Indian students has increased in the past decade.”
Ashish Devalekar, Executive Vice President and Head of Europe at Mphasis, emphasized London’s status as an innovation hub, stating, “At Mphasis, we have steadily expanded our presence in the region over the past years.” He outlined Mphasis’ commitment to doubling its workforce through its recently established London Innovation Hub, focusing on advanced areas like AI and quantum computing.
The London Growth Plan was developed in collaboration with businesses, trade unions, and community organizations, aiming to revive productivity that has stagnated since the 2008 financial crisis. Key components of the plan include refining talent development, boosting business innovation, enhancing housing and infrastructure, and invigorating local high streets. Mayor Sadiq Khan remarked, “This growth plan provides a golden opportunity to turbocharge growth and unlock London’s full potential.”
The plan targets a 20 percent increase in the weekly household income of the lowest earning 20 percent of Londoners, which could translate to an average of £50 more per week for over a million households after housing costs are considered.
In conclusion, London’s new growth plan positions India as a pivotal source for foreign direct investment and acknowledges the increasing importance of Indian students and businesses in the capital. With strategic initiatives focused on productivity, talent development, and infrastructure enhancement, the plan aspires to invigorate London’s economy, create significant employment opportunities, and improve living standards. This collaborative effort seeks to bolster London as a leading global hub for innovation and opportunity.
Original Source: www.ndtv.com
