India Becomes Top Investment Partner in London’s £27B Growth Plan

10 Mar, 2025

London has unveiled a new £27 billion growth plan to support public services and boost economic expansion. Spearheaded by Mayor Sadiq Khan and London & Partners, the plan aims to restore productivity growth to 2% annually, potentially increasing the city's economy by £107 billion by 2035. A major highlight is India’s role as the leading source of foreign direct investment (FDI) in London, surpassing the US in 2022-23 and maintaining its top position in 2023-24.

India’s investment in London has been growing rapidly, particularly in the tech sector. Indian companies are setting up operations in the capital, contributing significantly to job creation and innovation. Alongside business investments, Indian students have become a dominant presence in London’s higher education sector. In 2023-24, over 38,625 Indian students enrolled in London universities, making up more than 20% of the city’s international student population. This surge has strengthened the cultural and economic ties between the two nations.

The Growth Plan is designed to tackle economic stagnation since the 2008 financial crisis. It focuses on investing in skills and talent, supporting business innovation, accelerating housing and infrastructure projects, and revitalizing high streets. The initiative aims to create 150,000 well-paying jobs, expand affordable housing, and introduce major transport upgrades. A key target is to raise household incomes for the lowest-earning 20% of Londoners by 20%, offering over a million households an extra £50 per week after housing costs.

Sadiq Khan described the plan as a "golden opportunity" to unlock London’s full potential. With India's rising influence in investment, education, and tourism, the UK capital continues to strengthen its position as a global business and academic hub.

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