London has launched a new ‘growth plan’ to generate £27 billion in tax revenue, identifying India as its top source for foreign direct investment. The plan aims for a productivity growth of 2% per year over the next decade, enhancing London’s economy by £107 billion by 2035, while also focusing on nurturing talent and increasing household incomes.
London has recently launched an ambitious new ‘growth plan’ targeting an additional £27 billion in tax revenue to support essential public services both in the city and nationally. Mayor Sadiq Khan, in collaboration with London & Partners, aims to achieve an average productivity growth of 2% annually over the next decade, projecting that this will increase London’s economy by £107 billion by 2035.
India has emerged as the foremost source market for foreign direct investment (FDI) in London, surpassing the United States in the 2022-23 period and maintaining this lead in 2023-24. Laura Citron, CEO of London & Partners, acknowledged, “Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years.” This trend includes a significant influx of Indian tech companies establishing operations within the city.
In terms of education, London welcomed 38,625 Indian students for the 2023-24 academic year, marking a substantial increase that has seen India rise to the second position for international students in the city, following China. Mark Hertlien, Head of Global Engagement at City St George’s University, commented, “It is positive that London’s quantity of Indian students has increased… They become lifelong ambassadors of our capital city.”
Indian IT company Mphasis has also recognized London as an innovation hub. Ashish Devalekar, the company’s Executive Vice President, stated, “At Mphasis, we have steadily expanded our presence in the region… This centre is a testimony to our commitment to the UK and its vibrant tech scene.” This reflects the growing technological collaboration between India and the UK.
The ‘Growth Plan’ developed by Khan aims to revive productivity that has stagnated since the 2008 global financial crisis. It focuses on nurturing talent, supporting innovation with new investment, and enhancing housing and infrastructural projects. Khan emphasized, “This growth plan provides a golden opportunity to turbocharge growth and unlock London’s full potential.” The initiative also aims to improve the income for the lowest earning households in London significantly.
This strategic growth plan represents significant opportunities for London and its international partnerships, particularly with India, fostering economic development and cultural exchange in the years ahead.
In summary, London’s new ‘growth plan’ aims to generate an additional £27 billion in tax revenue to support vital services while recognizing India as the top source of foreign direct investment. With a focus on productivity growth, nurturing talent, and expanding innovative sectors, the plan aims to enhance the economic landscape of London and improve the quality of life for its residents. The ongoing relationship with India in education and technology further underscores the significance of this collaboration in realizing London’s ambitious goals.
Original Source: www.ndtv.com
