Indian companies are second only to US firms in the number of projects being executed in London, which is the biggest destination for foreign direct investment among European cities.
According to Think London, a UK based semi government agency engaged in promoting the city as an investment destination, the number of projects executed by Indian companies have increased ten fold in the past 10 years.
"We are working with 19 Indian projects, which have a gross value addition of 22 million pounds and have created 170 jobs. But the actual number of Indian projects is much more," said Michael Charlton, chief executive, Think London.
According to Charlton, the majority of the projects are in the technology space, followed by financial business and creative fields which includes animation. "As much as 36 per cent of Indian investments in Europe is directed to London".
In a survey released on Tuesday by Think London, 61 per cent of Indian and US companies having operations in the city said that the return on investments and revenue growth was the highest for operations based in London than anywhere any
other European city.
"Four times as many US and Indian companies in London than those in other European cities feel that their return on investment is significantly higher as a result of their presence in the city," the report said.
Moreover, four out of five Indian and US companies, based in London said that their revenue growth was much faster than their offices in other European cities. The survey also found that more than 50 per cent of the Indian and US companies based in Europe also said in their survey that their London based offices posted a better revenue growth.
"This is significant because the usual perception is that the cost of investment in London is high. The survey results imply that the initial high costs of investments in London is offset by high return on investment and revenue growth," said Charlton. He also pointed out that between 2007 and 2012, there would be an investment opportunity of $ 80 billion in London.
"Nearly 10 per cent of that will be due to activities related to the London Olympics. Indian companies can reap large benefits if they invest in London".
