India

London attracts over half of all Indian investment into Europe and provides Indian businesses with a gateway to the continent, India is the second biggest foreign investor in London.

London has strong links with India and a shared history, but it is crucial that we update London's image. Our strategy in India is one of market activation in the coming year through the Mayoral delegation in November 2007, with the opening of our Mubai Mumbai and Delhi offices.

Why Mumbai?

Mumbai is the most populous city of India, with an estimated population of 16.4 million (2001). Based on research by R.K Swarmy, for India Today, it also has the largest market of any Indian city.

It is the commercial and entertainment capital of India, and houses important financial institutions, such as the Reserve Bank of India (RBI), the Bombay Stock Exchange (BSE), the National Stock Exchange of India (NSE) and the corporate headquarters of many Indian companies.

The city is home to India's Hindi film and television industry, known as Bollywood. Mumbai's airport is the busiest airport in India and carries the most passengers directly from London airports to anywhere in India.

Further, Mumbai has one of the best natural harbours in the world, handling much of the country's passenger traffic and cargo.

Why Delhi?

Delhi is the political capital of India and home to 13.8 million (2001) people and the seat of the Government of India. Kolkata is the main business, commercial and financial hub of eastern India and the northeastern states, and home to 13.2 million (2001) people.

Mumbai, as the commercial and entertainment capital of India, would have much to recommend it as the first location for an a London Development Agecny Agency (LDA) office in India. However, Delhi, as the political centre of India, makes a strong case for having a relationship with, particularly for the Mayor's office.

As with China, the India strategy is to use these major cities as platforms, from which we can build our way into the rest of the Indian market.

An estimated 200m middle-class Indians are developing the disposable income that could potentially be invested in London.

Mumbai and Delhi act as gateways to the North and South of India respectively; the cities of Bangalore, Chennai and Hyderabad will be crucial places for London to build brand profile.

Background to India

India's economy is expanding very quickly due, in part, to an ever increasing consumer class. Between 1981 and 2004, the Indian economy grew by an annual average of 5.8% (real GDP at factor cost), following three decades of much slower growth.

Expansion in manufacturing in 2004/05 and further growth in the services sector ensured that economic growth of 7%. While in the first quarter of 2006/07, the economy grew by 8.9%, boosted by manufacturing and services output.

Think London notes that India accounted for 18% of foreign investment this year (2007). It has helped 36 Indian firms set up in the capital since mid 2005, creating 840 jobs.

India is the second biggest foreign investor in London, and will contribute over £33million to the capital's economy in 2006/07, according to a new estimate.