London’s ‘growth plan’ aims for £27 billion in additional tax revenue and identifies India as the top foreign investment source. The plan seeks to revitalize productivity and foster job growth, with emphasis on talent and innovation. It highlights the increase in Indian students and investment, promoting London’s role as a global hub.
Recently, London has introduced an ambitious ‘growth plan’ projected to yield an additional £27 billion in tax revenue to support essential public services throughout the city and the nation. Mayor Sadiq Khan and the growth agency London & Partners revealed that India is identified as the leading source market for foreign direct investment (FDI) under this initiative. The plan aims to restore productivity growth to an average of 2% annually over the next decade, intending to expand London’s economy by £107 billion by the year 2035.
In 2022-23, India surpassed the United States to become London’s primary FDI source market, a trend that has continued into 2023-24. Laura Citron, CEO of London & Partners, emphasized this growth, stating, “Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years.” Furthermore, she highlighted the significant role of Indian tech companies in establishing operations in London, calling attention to the rapid increase of Indian students choosing London for higher education, which has made India the second largest student market after China.
Data for 2023-24 indicates that London hosted 38,625 Indian students, marking a significant rise over the past decade. The proportion of international students from India attending London universities has surged from under 5% to over 20%. Mark Hertlien, Head of Global Engagement at City St George’s University, remarked, “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 Indian IT company Mphasis, emphasized London’s appeal as a hub for innovation and talent. He noted, “At Mphasis, we have steadily expanded our presence in the region over the past years,” adding that their London Innovation Hub is a significant commitment to the UK’s tech scene, focusing on advanced technologies.
Developed in collaboration with businesses and community stakeholders, the London ‘Growth Plan’ outlines a strategy to enhance productivity that has stagnated since the 2008 financial crisis. The plan highlights critical drivers, including fostering world-class talent, encouraging business innovation, and renewing focus on housing and infrastructure improvements. Mayor Khan stated, “This growth plan provides a golden opportunity to turbocharge growth and unlock London’s full potential.”
The objectives include increasing the weekly income of the lowest earners by 20%, providing more than a million households with an additional £50 per week after housing costs. The plan promises to create 150,000 quality jobs and facilitate affordable housing and transport upgrades, reinforcing London’s status as an epicenter for leading global industries, including AI and life sciences.
In summary, London’s new ‘growth plan’ aims to significantly bolster its economy while positioning India as a crucial player in foreign investment and educational opportunities. With a focus on talent development, innovation, and pragmatic infrastructure improvements, this plan is designed to create jobs and enhance the living standards of its residents. The projections and strategic initiatives underscore London’s commitment to fostering a dynamic and inclusive economic environment.
Original Source: www.ndtv.com
