India becomes London's second largest foreign investor

NEW DELHI: Think London, the foreign direct investment agency for London, announced today that the number of Indian companies it has assisted to set up business in London has doubled in the last year. Indian companies now represent 30 percent of all foreign investment in London, making it the capital's second biggest overseas investor after the US, which accounts for 50 percent.

Within the past year alone, 22 Indian companies have set up in London and this is likely to generate around 400 new jobs in total. Three quarters of the investing businesses are in the telecoms, pharmaceutical and IT sectors, led by software and computer companies from Bangalore and Mumbai.

“Whilst much attention has been given to UK companies outsourcing jobs to India, the fact is that successful Indian businesses — notably in the technology sector — are expanding rapidly in the global market and bringing new jobs to London,” said Michael Charlton, Think London's chief executive. “We aim to forge closer ties between ourselves and prospective Indian investors.”

Michael Charlton and Anupam Jhunjhunwala, Think London's Business Development Manager, travel to India this week to spread awareness among Indian businesses of London's strengths as an international base.

Among the biggest new Indian investors in London last year were Bangalore-based Microland, which is expected to create around 50 jobs at a new city centre location and Northgate Technologies, which is setting up UK offices near Canary Wharf with the view of creating around 70 jobs in total. Other companies include D'zine Interactive and Export-Import Bank of India (Exim Bank).

Think London has produced a report in collaboration with Cranfield School of Management that looks in detail at the impact of working in London on the careers of foreign-born executives, including Indian executives whose organisations have bases in the capital. The report titled, Career Capital: London & The Global Professional, focuses on the impact of London on the careers of overseas individuals. An overwhelming 100 per cent of Indian executives interviewed said that working in London had increased their understanding of global business, while an equal number said they had developed better communication skills.

Indian-owned businesses already in London include 140 Indian multi—nationals and generate a combined turnover of approximately £8.5 billion, representing five per cent of London's total economy. Between 1997 and 2004, there were 119 Indian foreign direct investment projects in Europe, of which almost half — 55 projects — went to London.

Anupam Jhunjhunwala, Senior Business Development Manager at Think London, commented:

“We offer Indian companies free and confidential business support and market intelligence so that they can successfully set up and establish business in London. Indian companies are choosing London as a base for their European expansion due to London's unrivalled offer as a business destination. The long-established and vibrant Indian community in the capital also ensures that companies immediately feel at home doing business here.”