Indian firms No. 2 executor of UK projects

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 has increased ten-fold in the past 10 years.

"We are working with 19 Indian projects, which have a gross value addition of £22 million 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 today by Think London, 61 per cent of Indian and US companies having operations in the city said the return on investments and revenue growth was the highest for operations based in London than in 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 their revenue growth was much faster than that of their offices in other European cities.

On the other side, more than 50 per cent of the Indian and US companies based in Europe said their London based offices posted a better revenue growth according to the survey.

"This is significant because the usual perception is 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 returns 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."