LONDON: India has emerged as the second largest investor in the city of
London with Indian companies led by software major
InfosysBSE 1.65 % wooed by the investment fervour generated by the 2012 Olympic Games in the British capital.
Software services firm Infosys leads the charge of inward
foreign direct investment (FDI) made by a total of 28 Indian companies, which generated 429 additional jobs for the British
economy
in the last year alone, according to latest government figures released
here today to mark a year since London hosted one of the world's
biggest sporting events.
"India is a very important market for
us and these are fantastic results. The Olympics provided the perfect
opportunity for Indians to come and experience London and resulted in
more Indian companies setting up here," Gordon Innes, the CEO of London
and Partners (L&P) and the
Mayor of London's business and promotional organisation, told PTI.
"I had taken the mayor
Boris Johnson, to India last year where we held some very important discussions at
the national
and city level. India has seen phenomenal growth and there are a large
number of areas of common interest, such as transport and city planning,
where we can work together," he said in reference to the future plans
of L&P.
L&P is a not-for-profit public private partnership set up to unlock London to overseas investment.
India brought in a large chunk of the 2.5 billion-pound additional foreign investment into the UK since the Games and Indian
FDI
projects in 2012-13 are estimated to generate 24 million pounds in
gross value added for London's economy over the next three years.
Information and communications technology (ICT) was the key sector in terms of Indian FDI into London, followed by
financial services and retail.
"The fact that the Olympics were held here generated a lot of positive
imagery globally. Our clients employ us because we are at the cutting
edge of innovation. We need to be talking to the right people and London
& Partners does a good job at helping us with that,"
Bangalore-headquartered Infosys said in a statement.
In the financial services sector,
Axis BankBSE -3.85 %
stood out for setting up its global operations in London as a direct
result of discussions during the mayoral visit to India last November.
Cyril Anand,
chief executive of
Axis Bank UK
said, "London has the right mix of potential wholesale and retail
business to make it the ideal location for our first international
subsidiary. It provides us with a robust regulatory
environment
which will allow Axis to build on its strong corporate franchise
internationally. We look forward to establishing a significant presence
in the city."
Among some of the other Indian firms to use
London as their global expansion point include Gurgaon-headquartered
Indiabulls Group offering asset management and realty products, Indian
portal for restaurant information Zomato, export house Vijay Enterprises
and Delhi-based tech firm Kayako Infotech Limited.
The
2012-2013 figures build upon India's historical prominence as an
investor into London and the UK at large. The country has consistently
ranked in the city's top four investors and created as many as 830 jobs
in 2011-12 for the economy.
The latest figures were released as
part of an overall estimate of the economic impact of the Olympic Games
on London's economy. British government research indicated that the UK
economy has seen a 9.9 billion-pound boost in trade and investment from
hosting the Games.
"We are harnessing the Olympic momentum and
delivering the lasting business legacy of the Games that will help make
Britain a winner in the global race," Prime Minister David Cameron said
in a statement.
The report attributes new contracts, additional
sales and foreign investment in the last year to the Games, generating
an estimated 4,136 jobs. The US remains the biggest investor into
London, bringing in 1,694 jobs, with China coming in third with 365
jobs.
