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From the Ganges to the Thames: An analysis of Indian FDI into London GLA Economics 3 1. Reasons for looking at India and
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From the Ganges to the Thames An analysis of Indian FDI into London June 2005
copyright Greater London Authority June 2005 Published by Greater London Authority City Hall The Queen’s Walk London SE1 2AA www.london.gov.uk enquiries 020 7983 4000 minicom 020 7983 4458 ISBN: 1 85261 748 9 Cover photograph © London Unlimited This publication is printed on recycled paper. For more information about this publication, please contact: GLA Economics telephone 020 7983 4922 email [email protected] web www.london.gov.uk/mayor/economic_unit Greater London Authority GLA Economics provides expert advice and analysis on London’s economy and the economic issues facing the capital. Data and analysis from GLA Economics form a basis for the policy and investment decisions facing the Mayor of London and the GLA group. The unit is funded by the Greater London Authority, Transport for London and the London Development Agency. GLA Economics uses a wide range of information and data sourced from third party suppliers within its analysis and reports. GLA Economics cannot be held responsible for the accuracy or timeliness of this information and data. GLA Economics, the GLA, LDA and TfL will not be liable for any losses suffered or liabilities incurred by a party as a result of that party relying in any way on the information contained in this report.
Think London Think London is the official foreign direct investment agency for London. We connect international businesses to London, helping them set up, succeed and grow. We are a not-for-profit, private-public partnership delivering expertise and advice to international businesses. Our service is completely free, comprehensive and confidential. Our experts work with government and the business community to help companies access the best people, places and opportunities in the city. Think London’s principal funding partners are the London Development Agency (LDA) and London’s business community, through London First. Other key partners are the Corporation of London, which also provides funding, and UK Trade & Investment. www.thinklondon.com
From the Ganges to the Thames: An analysis of Indian FDI into London
Contents Executive summary.......................................................................................................... ii 1. Reasons for looking at India and FDI...........................................................................3 2. Monitoring Indian FDI, 1997-2004 .............................................................................6 3. Underlying trends in Indian FDI.................................................................................15 4. Prospects for Indian FDI............................................................................................20 Abbreviations ................................................................................................................22 References ....................................................................................................................23
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Executive summary London is home to 144,000 people born in India and a further 290,000 people of Indian ethnicity. There are up to 10,000 Indian-owned businesses in London and up to one million passengers a year flying directly between India and London’s airports. India is one of the fastest growing economies in the world and its rate of growth will be sustained over coming years. India has become increasingly open to international trade and international investment, and the UK and India have become important trading and investment partners. UK companies have a long history of foreign direct investment (FDI) into India. Now as India’s economy grows, Indian companies are increasingly investing in the UK. FDI brings many benefits to the UK economy such as increasing employment and output, stimulating competition, and increasing productivity. GLA Economics, working with Think London, used the Ernst and Young European Investment Monitor to identify trends and patterns of Indian FDI into London, the UK, and the rest of Europe. Over 1997 to 2004, there were 119 Indian FDI projects in Europe. London was the destination for 55 of these projects – almost half of the total. London alone welcomed more Indian FDI projects than all other European countries outside the UK combined. Over half of all Indian FDI projects that came to London were in software with these projects using London firstly as a headquarters and secondly as a base for their sales and marketing. London’s other advantages are in providing a sales location for Indian services in finance and business and as a European headquarters for a range of sectors. London does not have an advantage in attracting Indian FDI in manufacturing activities or contact centres, which are usually the most employment intensive projects. Activities in headquarters and marketing tend to generate fewer jobs per project. Therefore, London’s advantage is in attracting many smaller projects. The number of Indian FDI projects increased from only five projects in 1997 to a high of 17 in 2004. The rest of the UK and the rest of Europe also increased the number of projects, meaning London has generally sustained its share of projects. The challenge for London is to continue to improve its attractiveness as a location for Indian investment and to continue to provide a natural home for Indian business investors.
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1. Reasons for looking at India and FDI The growing economic importance of India India is one of the fastest growing economies in the world. From 1993 to 2003, India’s economy grew at an average annual rate of almost six per cent 1 . The World Bank forecasts that this average growth rate will be sustained over coming years 2 . Indeed, in 2003, India’s rate of growth was more than eight per cent. See Figure 1.1. Figure 1.1: India GDP 1980-2003, year-on-year percentage change 12
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%
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2003
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Notes: GDP = Gross Domestic Product Source: EcoWin
Much of India’s economic growth results from India’s economic success in a few key sectors including telecommunications and information technology, as well as chemicals and pharmaceuticals. Throughout the past few decades, India has become increasingly open to international trade. Successive governments have sought to liberalise trade and encourage Indian exports. In 1983, exports of goods and services represented only six per cent of India’s GDP but by 2003 this had risen to more than 15 per cent.
1 2
World Bank, 2004, World Development Indicators. View: www.worldbank.org. World Bank, 2004, World Development Indicators. View: www.worldbank.org.
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The UK and India are important trading partners. In 2003: • The UK received imports totalling £2.8 billion from India. This consisted of £2 billion of goods such as engineering goods, gems and jewellery; and £0.8 billion of services. • The UK sent exports worth £3 billion to India. This consisted of £2.3 billion of goods such as metals and chemicals, and £0.7 billion of services. • UK trade with India has grown rapidly over 1993 to 2003 with imports increasing more than 107 per cent and exports increasing by 95 per cent 3 in current prices. India has also become increasingly open to international investment. The UK and India are important investment partners. Much of this investment is through Foreign Direct Investment (FDI), which is when a business takes ownership of assets located abroad. Other routes include portfolio investment. Statistics from the Office for National Statistics (ONS) on FDI show that4 : • In 2003, UK companies invested more than £210 million of FDI into India, up from £60 million in 1995. • In 2003, UK companies held £1,300 million of FDI assets in India compared to £500 million in 1995. While UK companies have long invested directly in India, this is being reciprocated as Indian companies invest increasingly in the UK. Indeed in 2004 India was the second most important source of FDI into London (the USA being the first). The benefits of FDI It is clear that India’s economic growth is going hand in hand with increased openness to international markets. As many Indian companies grow they become more internationally orientated and so wish to expand overseas through FDI. There are three principle motives for firms engaging in FDI: 1. Market seeking – This is when firms aim to gain market access, for example, to reach a wider range of customers. 2. Resource seeking - This is when firms try to access resources not readily available in their home country. 3. Efficiency seeking – As firms become more international they can become more specialised and develop economies of scale. These motives apply as much to Indian businesses as those from any other country. Indian businesses for example can benefit from investing in the UK as it allows them to access UK and European markets and reach resources such as a highly skilled workforce.
3 4
4
Office for National Statistics, 2004, The Pink Book 2004: United Kingdom Balance of Payments Office for National Statistics, 2003, Business Monitor MA4: Foreign Direct Investment 2003
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From the Ganges to the Thames: An analysis of Indian FDI into London
There is also a broad consensus that FDI brings many benefits to the UK economy 5 : • Direct increases in employment and output. • Foreign-owned establishments tend to have a higher productivity than domestically owned counterparts. • FDI stimulates wider economic effects through increasing competition, which encourages spillover effects boosting productivity and efficiency. • Empirical evidence also suggests that productivity spillovers are likely to be found at the competitors and customers of the foreign-owned companies as well as their suppliers. The benefits of FDI to London’s economy are shown by recent research for Think London6 , London’s official FDI agency. This research reveals that more than half-amillion jobs in London are attributed to FDI companies. Moreover, FDI companies often grow rapidly and contribute significantly to London’s economic growth. The potential for Indian FDI in London The rapid economic growth of India and increasing numbers of Indian companies engaging in FDI, highlights a clear opportunity for London to attract and retain investment from India. London is home to 144,000 people born in India and a further 290,000 people of Indian ethnicity 7 ; around 40 per cent of all Indian people in the UK. Moreover, perhaps largely through a shared history, the UK is home to more Indian people than any other European country. With up to 10,000 Indian-owned businesses in London and up to one million passengers 8 a year flying directly between India’s airports and London’s airports of Heathrow and Gatwick, London is truly a channel to, and from, India.
5
GLA Economics, 2004, Case for London: London and Foreign Direct Inward Investment, Technical report 2. Prepared by London Economics. 6 Think London, 2004, One in seven: The Impact of inward investment on the London economy. Prepared by DTZ Pieda Consulting. 7 GLA Data Management & Analysis Group, 2005, London country of birth profiles: An analysis of census data, DMAG Briefing 2005/2 8 Civil Aviation Authority, UK Airport Statistics. View: www.caa.co.uk/default.aspx?categoryid=80&pagetype=88&pageid=3&sglid=3
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2. Monitoring Indian FDI, 1997-2004 The Ernst and Young European Investment Monitor Think London provided GLA Economics with access to the Ernst and Young European Investment Monitor (EYEIM) dataset that provides information on inward investment projects. The EYEIM tracks information on publicly announced inward investment projects within Europe. In this instance, Europe is defined as comprising both the European Union (EU) and non-EU states such as Russia and Switzerland. EYEIM data has been collected since 1997 and includes information for each project on: • Country of origin • Year of the investment project • Destination city and country • Industry group • Sector • Activity There is also data on employment numbers although this is not available for every project. The strength of the EYEIM is that it can be used to identify trends and patterns in FDI into London by sectors and activities. The limitation of using EYEIM is that it covers only FDI, and joint ventures where jobs are created, but does not cover mergers and acquisitions. Although this dataset in not fully comprehensive, it is still the best available data source on FDI projects into Europe. Geography of projects The EYEIM indicates that between 1997 and 2004, Indian companies accounted for 119 FDI projects to Europe. Figure 2.1 shows that 55 of these projects (46 per cent) located in London, 16 projects (13 per cent) located somewhere in the rest of the UK, and 48 projects (41 per cent) located somewhere in the rest of Europe. The UK is the destination for the majority of Indian FDI projects into Europe with London alone welcoming more projects than all European countries outside the UK.
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Figure 2.1: Geography of Indian FDI projects in Europe, 1997 to 2004
London
Rest of UK
Rest of Europe
0
10
20
30
40
50
60
Source: Ernst & Young
As Table 2.1 shows, compared to the UK, few countries attract significant numbers of projects from India. Germany is the second most popular destination for Indian FDI with most of these projects dispersed across the country. This is followed by Russia, with all the projects locating in Moscow, and France, with most locating in Paris. Table 2.1: Number of FDI projects by European country, 1997 – 2004 Destination country Projects United Kingdom 71 Germany 13 Russia 7 France 4 Sweden 4 Netherlands 3 Others 17 Source: Ernst & Young
As Table 2.2 shows, in the UK, London is by far the most popular destination for Indian FDI projects.
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Table 2.2: Number of FDI projects by UK region, 1997 – 2004 UK region Projects London 55 South East 3 East 2 North 2 Northern Ireland 2 North West 2 Wales 2 West Midlands 2 South West 1 Source: Ernst & Young
Industrial composition of Indian FDI projects The EYEIM records the industrial structure of the 119 Indian FDI projects to Europe. Table 2.3 shows 79 of these projects (66 per cent) are in services. Almost all of these are in financial and business services with a few in retail and hospitality or transport and communications. The other 40 projects (34 per cent) are in manufacturing. Table 2.3: Number of FDI projects by industry, 1997 – 2004 Services Manufacturing Finance & Retail & Transport Manufacturing Total business hospitality & comms services London 40 2 13 55 Rest of UK 7 2 7 16 Rest of Europe 27 1 20 48 Total 74 2 3 40 119 Notes: Comms = Communications Source: Ernst & Young
Table 2.3 reveals the main headlines of the pattern of Indian FDI into Europe: • London’s advantage is clearly in financial and business services attracting more than half of all such projects into Europe. There were 40 such Indian FDI projects into London, over a third of all India’s projects into Europe. • London has a lower share of manufacturing projects, whereas Europe outside the UK has greater success in attracting such projects. These broad headlines on the pattern of Indian FDI in services and manufacturing are helpful put it is necessary to explore in more detail these projects’ characteristics to fully understand London’s strengths.
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Understanding Indian FDI in services The 79 Indian FDI services projects in Europe between 1997 and 2004 are dominated largely by one sector: software. ‘Software’ in this report includes the standard definition of software plus some IT services. Software represents 55 projects or 70 per cent of Indian projects in services. In contrast other business services (which includes law, consultancy etc) had ten projects, while financial intermediation such as banking had eight projects. See Figure 2.2. Figure 2.2: Number of Indian FDI services projects in Europe by sector, 1997 to 2004 Software Business Services Financial Intermediation Telecommunications & Post Insurance & Pension Other Transport Services Retail Wholesale 0
10
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40
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Source: Ernst & Young
It is also important to consider the activity of FDI projects as well as the sector. Figure 2.3 shows that Indian FDI projects in services have two main activities – as centres for sales and marketing (37 projects) and as headquarters for administration and control (28 projects). These mainly office-based activities account for almost all projects in services with only a few projects in activities such as research or education.
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Figure 2.3: Number of Indian FDI services projects by activity, 1997 to 2004 Sales & Marketing
Headquarters
Research & Development
Contact Centre
Education & Training
Logistics 0
5
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15
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25
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Source: Ernst & Young
Understanding Indian FDI in manufacturing There are fewer projects in manufacturing with 40 Indian FDI manufacturing projects in Europe between1997 and 2004. These projects are across a range of manufacturing sectors with the highest numbers in pharmaceuticals and plastic and rubber. Figure 2.4: Number of Indian FDI manufacturing projects in Europe by sector, 1997 to 2004 Pharmaceuticals Plastic & Rubber Electronics Food Machinery & Equipment Chemicals Computers Automotive Components Basic Metals Electrical Non-metallic mineral products Textiles 0
2
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6
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Source: Ernst & Young
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However, an important observation is that few projects in the manufacturing industry actually engage in manufacturing activities – only 15 of the 40 projects do so (see Figure 2.5). Manufacturing projects are more likely to consist of office-based activities than production. There are 16 projects for sales and marketing and a further six as headquarters. Figure 2.5: Number of Indian FDI manufacturing projects in Europe by sector, 1997 to 2004 Sales & Marketing
Manufacturing
Headquarters
Logistics
Research & Development
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Source: Ernst & Young
Activity pattern of Indian FDI projects Therefore, it is as important to consider the activities of Indian FDI projects as it is to consider the industry and sector in which they operate. The EYEIM records the pattern of activities of the 119 Indian FDI projects in Europe. Table 2.4 shows 53 of these projects (45 per cent) are in sales and marketing, 34 are headquarters (29 per cent). Only 15 are in manufacturing activities (13 per cent) and ten are involved with research and development. The remainder are in other activities such as contact centres, logistics and education.
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From the Ganges to the Thames: An analysis of Indian FDI into London
Table 2.4: Number of FDI projects by activity, 1997 – 2004 Sales & HQs Manu R&D marketing London 22 29 2 1 Rest of UK 26 4 8 8 Rest of Europe 5 1 5 1 Total 53 34 15 10
Other Total 1 2
55 48
4 7
16 119
Notes: HQ = Headquarters, Manu = Manufacturing, R&D = Research and Development Source: Ernst & Young
Table 2.4 provides us with an understanding of the activity pattern of Indian FDI in Europe, revealing the following: • London’s particular advantage is as a centre for headquarters. • London also has an advantage as a location for sales and marketing. It shares this advantage with the rest of the UK. • London it not a centre for either manufacturing activities or research and development although these appear to be advantages for the rest of the UK. Identifying the key strengths for Indian FDI in London This analysis has shown that London is most successful in attracting Indian FDI in service sectors and in activities such as headquarters, and sales and marketing. Table 2.5 combines activities and sectors in London making it possible to identify in what areas London holds its key strengths in terms of attracting FDI projects from Indian companies. Table 2.5: London’s top Indian FDI projects by activity and sector, 1997 – 2004 Activity Sector Number of Share of projects projects into Europe Headquarters Software 21 18% Sales and marketing Software 7 6% Financial Sales and marketing intermediation 5 4% Headquarters Pharmaceuticals 2 1.5% Machinery Headquarters manufacturing 2 1.5% Sales and marketing Business services 2 1.5% Sales and marketing Pharmaceuticals 2 1.5% Source: Ernst & Young
London’s key advantage is in the high technology software sector, firstly as a headquarters for such companies and secondly as a basis for their sales and marketing. Over half of all Indian FDI projects that came to London between 1997 and 2004 were in software. Over half of all Indian software projects to Europe came to London.
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From the Ganges to the Thames: An analysis of Indian FDI into London
London’s other advantages in Indian FDI projects are in providing a sales location for the service sectors, particularly in finance, and as headquarters for a range of sectors including manufacturing (e.g. pharmaceuticals and machinery manufacturing). London is also the primary location for the European headquarters of the Fortune Global 500 companies – accounting for 33 percent of such headquarters. Paris is second with just nine per cent of such headquarters. It is London’s position as a global centre of corporate financial and business services that encourages companies to locate their headquarters in the UK capital9 . Estimating employment contribution of projects The EYEIM provides some information on the number of jobs initially created by Indian FDI projects, however this information is incomplete. Of the 119 projects there is only employment information for 84. The employment numbers are only recorded at the arrival of the FDI project and may expand or contract over time. Even so, this information helps to show that not all FDI projects are of the same scale and that there are different patterns of job generation depending on the nature of the project. The activity of the project appears to influence the number of jobs created. Table 2.6 shows the numbers of jobs within each activity and calculates an average for the number of projects for which there is data. Data is most limited for sales and marketing activities. Table 2.6: Employment in Indian FDI projects by activity, 1997-2004 Total Projects with Average jobs per Activity Jobs projects jobs data project Contact centre 330 2 2 165 Manufacturing 1220 15 9 136 Research & development 670 10 6 112 Sales & marketing 1510 53 34 44 Headquarters 980 34 28 35 Logistics 90 3 3 30 Education & training 20 2 2 10 Total 4820 119 84 57 Source: Ernst & Young, calculations by GLA Economics
The main findings are that the most employment intensive Indian FDI projects are in contact centres, manufacturing and research. In contrast, the activities in which London has its greatest advantages – headquarters and marketing – tend to generate fewer jobs per project. Therefore, London’s advantage in terms of Indian FDI is in attracting many projects with fewer employees. Many of the larger projects may locate elsewhere.
9
GLA Economics, 2005, Growing Together: London and the UK Economy
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From the Ganges to the Thames: An analysis of Indian FDI into London
With the available data from the EYEIM, employment data is available for more than 70 per cent of projects. GLA Economics used this to estimate total initial direct employment in each region associated with these projects. To do this it is assumed that projects for which employment data is not available generate on average the same number of jobs as projects in the same location and activity for which data is available. Table 2.7: Estimated employment in Indian FDI projects by region, 1997-2004 Region Employment (rounded to nearest 100) London 2000 Rest of the UK 1000 Rest of Europe 4200 Total for Europe 7200 Source: Ernst & Young, calculations by GLA Economics
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3. Underlying trends in Indian FDI Trends by geography The above analysis gives the big picture of Indian FDI projects. It is also possible to use the EYEIM dataset to draw out some messages on the underlying trends of Indian FDI on an annual basis from 1997 to 2004. Figure 3.1 illustrates the rapid growth in the numbers of Indian FDI projects in to the whole of Europe. In 1997, there were only six projects. In 2002, there was a large increase to 26 projects. This fell back a little in 2003 but was clearly surpassed in 2004 with 39 projects. Figure 3.1: Annual number of Indian FDI projects in all of Europe 40 35
Number of projects
30 25 20 15 10 5 0 1997
1998
1999
2000
2001
2002
2003
2004
Source: Ernst & Young
Figure 3.2 disaggregates this trend with the number of projects into London, the rest of the UK and the rest of Europe.
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From the Ganges to the Thames: An analysis of Indian FDI into London
Figure 3.2: Annual number of Indian FDI projects in London, rest of the UK and rest of Europe 20 18
London
Rest of UK
Rest of Europe
16
Number of projects
14 12 10 8 6 4 2 0
1997
1998
1999
2000
2001
2002
2003
2004
Notes: Empty spaces in the graph are due to no projects being identified in those regions/places in that year. Source: Ernst & Young
The trends reveal the following: • The number of FDI projects coming into London has increased although it has fluctuated annually. Over 1997 to 2001 there were less than six projects each year and there were none in 2001. This sharply recovered to 13 projects in 2002 and reached a new high of 17 in 2004. • The number of FDI projects coming into the rest of the UK has followed a gentle upward trend. There were few until 2002 but six projects in 2003. • The rest of Europe has increased its number of FDI projects sharply. Again there were few projects over 1997 to 2000 but the rest of Europe attracted eight projects in 2001 and reached 18 projects in 2004. Throughout this period, London has averaged 40 to 50 per cent of all Indian FDI projects. There have been atypical years such as London receiving almost all projects in 2000 but none in 2001 but overall London has continued to attract up to half of the projects. Trends by activity Figure 3.3 shows that the growth in projects into London was largely driven by increasing numbers of headquarter projects. There were no headquarters projects in 1998 but 13 in 2004. The number of sales and marketing projects has been sustained but there have been no new projects in manufacturing activities since 1999.
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From the Ganges to the Thames: An analysis of Indian FDI into London
Figure 3.3: Number of Indian FDI projects into London by activity 18 Sales & Marketing
16
Research & Development 14
Manufacturing Headquarters
12
Education & Training
10 8 6 4 2 0 1997
1998
1999
2000
2001
2002
2003
2004
Notes: London had no identified Indian FDI projects in 2001. Source: Ernst & Young
Figure 3.4 illustrates the geographical pattern of headquarters projects of Indian FDI over each year. As the number of headquarter projects has grown, London no longer has an absolute monopoly in attracting all headquarters but continues to be the main destination with up to 80 per cent of projects. Figure 3.4: Annual number of Indian FDI projects in headquarter activities 14
12 London
Rest of UK
Rest of Europe
Number of projects
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0 1997
1998
1999
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2001
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2004
Notes: Empty spaces in the graph are due to no headquarter activity projects being identified in those regions/places in that year. Source: Ernst & Young
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From the Ganges to the Thames: An analysis of Indian FDI into London
Trends by industry The pattern of inward investment from Indian companies into London became increasingly concentrated in software, which increased from one project in 1998 to 11 in 2002. In 2003 and 2004 there were fewer software projects but the level of projects into London was boosted by new investments in finance and manufacturing. Hence the sectoral pattern of Indian FDI may be broadening out as London attracts increased numbers of Indian company headquarters. See Figure 3.5. Figure 3.5: Indian FDI projects into London by sector 18 Software
16
Other Services Financial Intermediation
14
Manufacturing
12
Business Services
10 8 6 4 2 0 1997
1998
1999
2000
2001
2002
2003
2004
Source: Ernst & Young
Figure 3.6 shows the pattern of projects in the software sector from Indian FDI for each year. The number of software projects has grown rapidly. Although there is no clear trend, London has usually attracted more software projects than the rest of UK and rest of Europe together. Only in 2001 and 2004 has London not attracted most of the software projects.
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From the Ganges to the Thames: An analysis of Indian FDI into London
Figure 3.6: Annual number of Indian FDI projects in the software sector 12
London
Number of projects
10
Rest of UK
Rest of Europe
8
6
4
2
0 1997
1998
1999
2000
2001
2002
2003
2004
Notes: Empty spaces in the graph are due to no software projects being identified in those regions/places in that year. Source: Ernst & Young
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From the Ganges to the Thames: An analysis of Indian FDI into London
4. Prospects for Indian FDI The data available from EYEIM, although not comprehensive, provides a good indication of the trends in Indian FDI into Europe. It allows an analysis of the broad patterns of London’s success in attracting FDI from Indian companies. London receives an impressively high share of projects for a single European city. According to EYEIM, the UK as a whole is the main destination in Europe for Indian FDI. From 1997 to 2004, the UK received 71 projects from Indian companies, while the second nearest country was Germany with 13. There has been a rapid increase in the number of projects in software services and in activities for headquarters and in sales and marketing, while the share of projects in manufacturing activities is becoming smaller. This shift in investment from manufacturing to headquarters, sales and marketing, and business services should benefit London, which has a competitive advantage in these areas. London presently appears to be maintaining its advantages in these areas. In particular, London continues to attract most investment in headquarter activities and a high share of investment in the software sector. It should not be assumed that London will retain this advantage. In 2004, more Indian software projects headed for the rest of Europe than came to London. London’s success in becoming the destination of choice for Indian investors relates to its ability to marry generic business attraction factors with a unique community support network. As with investors from any part of the world, Indian investors are drawn to London by a range of factors. Research undertaken on behalf of Think London by DTZ Pieda Consulting highlighted the following as being the main rationale for overseas businesses locating in London: • London’s status as global business city and the access to markets afforded • Proximity to client base • Ease of international travel • Prominence of the English language • Access to skilled labour. Where London is particularly attractive for Indian investors is that these factors are augmented by an Indian support network and community infrastructure that is unrivalled elsewhere in Europe. However, London’s position as Europe’s gateway for Indian firms cannot be taken for granted and the challenge for London is to continue to improve its attractiveness as a business location for Indian investment and to ensure that London’s clear advantages are promoted actively to Indian companies. Issues that businesses in general have identified as a priority need to addressed, for example improving intra-London transport
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From the Ganges to the Thames: An analysis of Indian FDI into London
infrastructure, including building Crossrail. Previous research10 has indicated that transport delays currently cost commuters to, and businesses in, central London around £1.2 billion per annum. Addressing these issues and making sure that London’s full diversity is promoted should put London in a position to capitalise on future waves of Indian FDI.
10
GLA Economics, 2005, Time is money: The economic effects of transport delays in central London. Research commissioned from Oxford Economic Forecasting.
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From the Ganges to the Thames: An analysis of Indian FDI into London
Abbreviations Comms EU EYEIM FDI GDP HQ Manu ONS R&D
22
Communications European Union Ernst and Young European Investment Monitor Foreign direct investment Gross domestic product Headquarters Manufacturing Office for National Statistics Research and Development
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From the Ganges to the Thames: An analysis of Indian FDI into London
References Printed publications GLA Data Management & Analysis Group, 2005, London country of birth profiles: An analysis of census data, DMAG Briefing 2005/2 GLA Economics, 2005, Growing Together: London and the UK Economy GLA Economics, 2005, Time is money: The economic effects of transport delays in central London. Research commissioned from Oxford Economic Forecasting. Office for National Statistics, 2004, The Pink Book 2004: United Kingdom Balance of Payments Office for National Statistics, 2003, Business Monitor MA4: Foreign Direct Investment 2003 Think London, 2004, One in seven: The Impact of inward investment on the London economy. Prepared by DTZ Pieda Consulting. World Bank, 2004, World Development Indicators. View: www.worldbank.org.
Online resources Civil Aviation Authority, UK Airport Statistics. View: www.caa.co.uk/default.aspx?categoryid=80&pagetype=88&pageid=3&sglid=3
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