Over the past three years, India has emerged as the largest investor in London, where Indian companies continue to play a pivotal role in the British capital city’s economic growth.
31 new Indian companies were established in London in 2023, followed by 23 in 2024, and an additional 12 in the ongoing financial year, said UK government agency London and Partners. Estimates say, the India-UK Free Trade Agreement (FTA) that will be signed today during Prime Minister Modi’s UK visit would boost bilateral trade by £25 billion every year, while also adding a significant number of jobs.
For the second year in a row, London and partners are touring Indian metropolitan and tier-2 cities to attract investments for the British capital city. London and Partners is the Economic development agency for London, under the Mayor of London’s Office. As a UK Government agency, London & Partners helps foreign firms invest in London, by providing accounting, legal, immigration, property search and related support for prospective investors. They also guide foreign firms on how to set up their organisation in London, offer support on matters related to patents, data protection, and offer sector-based advice.
While the quantum of investment by Indian firms has not been revealed, it is known that India leads with the maximum number of firms investing in UK’s capital city. Over the last five years, India is the second largest source of investment in the UK, in terms of the number of firms setting up over there, said Hemin Bharucha, Chief Representative, Mayor of London and Regional Director – India and Middle East for London & Partners, in a conversation with WION.
According to data from the Indian government, India-UK trade has surpassed £42.6 billion in 2024, an increase of 10% from 2023. There are more than 1,000 Indian firms operating in the UK with a total turnover surpassing $91 billion and employing more than a lakh people. Likewise, there are around 700 British firms operating in India, generating a total turnover of $59 billion and employing over five lakh people.
According to data from London and Partners, a major share of Indian investments into London are in the domains of tech, financial and business services, life sciences, creative industry, and sustainability. They also see significant potential in.
Software-as -a-Service (SAAS), AI, Cybersecurity, EVs, Smart charging solutions, among others. Hemin Bharucha adds, India-UK ties are significantly about people-to-people connect, as the maximum number of students coming to study in London are from India, and the maximum number of tourist arrivals to London are from India.
On the India-UK FTA, Bharucha said, “This is a fantastic and well-thought-out FTA, and is the best deal. Both PMs got involved after there were multiple start-stops in the talks. For many goods and products tariff is 0%, which includes Rubber footwear, seafood products etc. For the IT sector, there are many benefits. Usually, Indians coming to work in UK need to avail expensive insurance, which is paid by the company, but now that has been relaxed and insurance is required only for those staying after a period of two years. This helps Indian companies reduce personnel cost”.
Referring to Indian companies that are rapidly investing and expanding their footprint in London, Bharucha points out that initially it would take two years to get a company set up in the UK, whereas now it happens in six weeks. He credits the ambition of Indian entrepreneurs and young talent that are the driving forces behind this growth.
On London’s ability to attract as many Indian firms and talent, Bharucha says that the British capital city is perhaps the first and only city with Chief Technology Officer (CTO). He adds that the Deputy Mayor of London and the CTO are working on growth plans for the city and what it would look like 15 years from now. We are already exploring what all tech to deploy, what all companies to work with, and much more.