London’s new ‘growth plan’ aims for £27 billion in extra tax revenue with India as the top source market for foreign direct investment. The plan intends to bolster productivity to 2% annually and expand London’s economy significantly by 2035, while also enhancing educational and business opportunities for Indian nationals.
London has introduced its ambitious ‘growth plan,’ targeting an additional £27 billion in tax revenue to enhance public services across the city and the UK. India has been identified as the foremost source market for foreign direct investment (FDI), having overtaken the US in this regard in 2022-23. The plan, spearheaded by Mayor Sadiq Khan and London & Partners, aims to boost London’s productivity growth to an average of 2% annually over the next decade, potentially increasing the city’s economy by £107 billion by 2035.
India has shown remarkable growth over the past three years in terms of investment in London, especially in the tech sector and education. According to Laura Citron, CEO of London & Partners, “Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years.” This growth is also reflected in India’s increasing number of students studying in London, becoming the second-largest group after China.
Recent official figures reveal that 38,625 Indian students were enrolled in London universities for 2023-24, significantly rising from under 5% to over 20% in the past decade. Mark Hertlien from City St George’s University emphasized the positive trend saying, “It is positive that London’s quantity of Indian students has increased in the past decade.” These students play pivotal roles as cultural ambassadors, bridging ties between India and the UK.
In the realm of business, Ashish Devalekar from Mphasis highlighted London’s appeal as a hub for innovation and talent. He remarked that Mphasis has plans to double its workforce in the London Innovation Hub, focusing on developing solutions in AI and quantum computing. This new center underscores the company’s commitment to contributing to the UK’s tech landscape.
Crafted in collaboration with various stakeholders, the London ‘Growth Plan’ aims to enhance productivity which has stagnated since the 2008 financial crisis. Key strategies include developing talent, supporting innovation, and improving local infrastructure. Sadiq Khan stated, “This growth plan provides a golden opportunity to turbocharge growth,” indicating the potential to create 150,000 jobs and improve living standards. The plan also seeks to increase the weekly household income for the lowest earners by 20%, resulting in an average additional £50 weekly for over a million households.
In summary, London’s new ‘growth plan’ strategically positions India as a key player in its economic future, focusing on fostering investment, boosting education, and enhancing business opportunities. The initiatives outlined in this plan aim to unlock London’s potential by increasing productivity and the quality of life for its residents, thereby making London a more attractive destination for investment and talent.
Original Source: www.ndtv.com
