London more attractive than US: Mayor

The city of London has sought increased investments from Indian companies especially from medium and small-size businesses.

"London is far more attractive than US cities as an investment destination and more and more medium and small-size businesses from India should invest in the city," London Mayor Ken Livingstone said in London on Tuesday night.

The mayor, who is leading an 80-strong delegation of 'business ambassadors' to India on a six-day visit from Sunday, told newsmen, "we want more and more medium andsmall-size businesses from India to invest in London."

"Not just the huge corporations like the Tatas. In increasingly complex and diverse economies, you have to think of the small ones too," the mayor, who organised a three-month long 'India Now' festival recently in London, said.

"If you want to go global, London is your best one stop shop," said Michael Charlton, Chief executive of Think London, the city's official foreign direct investment agency, who is accompanying the Mayor during the visit.

James Bidwell, chief executive officer of 'Visit London', the city's tourist agency, said "London is ideally positioned to service the European market. London is a much better market place to service their financial needs than New York."

Charlton said London is keen to attract investments from medium and small scale businesses and is ready to offer a whole range of services -- from core financial advice to hand-holding -- in order to ease their way to London.

"For medium size businesses, a global move is a big move because they

do not necessarily have the management experience. It can be a big risk and a bit scary," he said.

But the risks needed to be weighed against the advantages of being in London, such as the return on investments in spite of higher headline costs and even expansion opportunities.

Charlton, who will go on a holiday to Shimla after the Mayor's visit to India, said he wanted to see businesses from cities like Pune, Ahmedabad and Chandigarh to set up branches in London.

India is the second largest investor in London after the US, accounting for 18 per cent of all FDIs in 2005-06. As many as 27 Indian companies are listed on the London Stock Exchange with a total market value of 4.4 billion pounds.

There are about 10,000 Indian-owned businesses in London employing 49,000 people.

According to official figures India's overseas investment in Europe has multiplied ten times in the past eight years, London accounting for just over 32 per cent of all European investment from India.

Almost half of all London-based Indian businesses that came to London operate in the software industry, with the second biggest grouping represented by financial and business services.

According to World Travel and Tourism Council, India is now poised to be the second fastest growing tourism economy in the world by 2014.

India represents a large potential student market for London, especially for postgraduate students with 75 per cent of Indian students studying postgraduate degrees. There are also a growing number of collaborative programmes between Indian and London Universities.