London has unveiled an ambitious ‘Growth Plan’ to generate an additional GBP 27 billion in tax revenue, aiming to bolster public services across the UK. Launched by Mayor Sadiq Khan in collaboration with London & Partners, the plan targets a 2% annual productivity growth over the next decade, potentially expanding London’s economy by GBP 107 billion by 2035. Central to this vision is India, now pegged as London’s number one source market for foreign direct investment (FDI).

India’s FDI dominance began in 2022-23, overtaking the US, and has held strong through 2023-24. “Foreign direct investment from India has been the fastest growing and our top market for two years,” said Laura Citron, CEO of London & Partners. Indian tech firms, like Mphasis, are driving this trend, with the latter doubling its London headcount via a new Innovation Hub focused on AI and quantum computing. Beyond investment, India is London’s second-largest student market after China, hosting 38,625 students in 2023-24—over 20% of the city’s international students—up from under 5% a decade ago. Tourism from India is also surging, cementing its critical role.

The Growth Plan, developed with businesses, trade unions, and communities, tackles London’s productivity stagnation since 2008. It emphasizes talent development, innovation, housing, and high street revival, aiming to create 150,000 jobs and boost incomes for the poorest 20% of Londoners by GBP 50 weekly. Khan called it a “golden opportunity to turbocharge growth,” spotlighting sectors like AI, life sciences, and climate tech.

India’s rise as an economic partner underscores London’s global appeal. As Mphasis’ Ashish Devalekar noted, the city’s status as an innovation hub makes it a magnet for world-leading talent and businesses, with India at the forefront of this transformative partnership.