India Becomes London’s Top Investor Since 2023
India is now London's biggest source of new investment since 2023, as Indian companies are powering London's economic growth in areas such as tech, finance, life sciences, and creative industries. As per the UK government agency London & Partners, 31 Indian companies established themselves in London during 2023, then 23 in 2024, and 12 more in the current financial year.
While PM Modi makes his visit to the UK, the two countries are preparing to sign a Free Trade Agreement (FTA) that will increase bilateral trade annually by £25 billion and generate thousands of jobs. The FTA aims to reduce insurance charges for Indian workers in the UK and cut tariffs across industries. At the same time, London & Partners is intensifying its outreach to Indian cities to bring more companies and talent to the British capital.
The India-UK FTA, expected to be signed during PM Modi’s visit, is seen as a landmark move. Officials say the deal reduces tariffs on key Indian exports, including rubber footwear and seafood.
The FTA also brings relief to Indian IT firms. Previously, companies had to pay costly insurance for workers sent to the UK. Now, insurance is only mandatory after a two-year stay. This change will help Indian firms lower their personnel costs significantly.
London & Partners, the Mayor of London's Office economic development agency, is at the forefront of winning over Indian companies. The agency is on its second successive annual tour of Indian metros and tier-2 cities. It provides foreign companies with legal, tax, immigration, and property-related assistance. It also advises them on patents, data protection, and industry-specific opportunities.
It has become easier to establish companies in London, thanks to London & Partners, according to Hemin Bharucha, director of India and the Middle East for the agency. It took two years. Now it takes six weeks. He attributes the influx of investment to India's young entrepreneurs.
India has surpassed other nations in the number of companies investing in London. In the previous five years, it was the second-biggest investor in the UK as a whole. India-UK trade reached £42.6 billion in 2024 alone—a 10% increase compared to 2023.
Over 1,000 Indian companies currently exist in the UK. Together, their turnover is more than $91 billion, with over one lakh employees. In return, over 700 British companies have operations in India. Combined, they have a turnover of $59 billion and over five lakh employees.
Indian investments in London mostly flow into sectors with high growth. These comprise finance and business services, life sciences, sustainability, creative industries, and technology. London & Partners also believes in the potential of Software-as-a-Service (SaaS), AI, cybersecurity, EVs, and smart charging technology.
India-UK relationships extend beyond commerce. India exports the most students and tourists to London annually. He further contributes that London's forward-thinking governance—having a Chief Technology Officer and Deputy Mayor in charge of future development—makes it particularly alluring for international talent and businesses.
Indian aspiration, skill, and confidence in the institutions of London are transforming economic interaction. The new FTA will make the alliance even more robust.
