London unveils £27 billion growth plan with India as top investment partner

London launched a new growth plan aimed towards supporting public services across the country by generating an additional £27 billion in tax revenue. The plan, unveiled by Mayor Sadiq Khan and London & Partners, seeks to restore productivity growth to 2 per cent annually over the next decade, potentially expanding the city’s economy by £107 billion by 2035.
A key highlight of the plan is India’s role as London’s leading source of foreign direct investment (FDI). India has been on an upward trajectory for the past three years, overtaking the US as London’s top FDI contributor in 2022-23, a trend that continued into 2023-24.
“Foreign direct investment from India has been the fastest growing and has been our number one market for the last two years,” said Laura Citron, CEO of London & Partners.
“So, it’s Indian tech companies setting up operations in London. Equally, if we look at it as a student market, post-Brexit, India has really rapidly grown as a student market. It’s now the number two source market for London after China. It’s also a fast-growing tourism market for London; India is just a really critical, top market for London,” she added.
Indian student surge in London
Official data for 2023-24 showed that 38,625 Indian students studied in London, marking a sharp rise over the last decade. India’s share of London’s international student population has increased from under 5 per cent to over 20 per cent.
“It is positive that London’s quantity of Indian students has increased in the past decade, with Indian students now accounting for over 20 per cent of international students enrolled at a London university,” said Mark Hertlien, head of global engagement at City St George’s University.
He said that the number of students joining City St George’s has doubled over recent years. “They become lifelong ambassadors of our capital city and create lasting and powerful bridges between our nations,” he added.
London continues to attract Indian businesses, particularly in the tech sector.
Developed with input from businesses, trade unions, and local communities, the Growth Plan aims to revive London’s economy, which has stagnated since the 2008 financial crisis. Key priorities include:

Sadiq Khan called the plan a “golden opportunity” to unlock London’s full potential.
“It’s a blueprint for how we can help to create 150,000 good jobs, build more affordable homes, deliver major new transport upgrades and skill up Londoners for the well-paid jobs of tomorrow. From AI, life sciences and climate tech to our financial and creative industries, London is home to many of the best businesses in the world, which we want to back to grow and thrive over the next decade.”
One of the key targets of the plan is to raise household incomes for the lowest-earning 20 per cent of Londoners by 20 per cent, potentially giving over a million households an extra £50 per week after housing costs.