Chancellor Rishi Sunak has predicted that London will expect a ‘Big Bang 2.0’ for London post-pandemic. Sunak compared the expected growth to that of Thatcher’s Big Bang deregulation of financial services in the 1980s.
However, 30 years on, the UK is in a very different position, separated from the wider EU financial hub. On the first day of trading after the UK left the EU, €6 billion worth of daily share trading moved from London to the continent. The UK will require outside investment to grow again and reach Sunak’s predicted heights.
UK can turn elsewhere for outside investment, including emerging markets, such as India. India was the second largest source of foreign direct investment (FDI) into the UK in the 2019-2020 financial year, and can be a great investor into the country going forward.
Gaurav Singh, Founding Partner at JPIN VCATS, the biggest UK-India investment platform, comments on the importance of maintaining Indian FDI:
“India is a key investor into the UK’s economy, investing in 120 projects and creating thousands of new jobs. FDI is crucial for the UK economy at this point. London should make sure the doors remain open to Indian investment – the government should be focusing on building relationships, brokering trade deals, and increasing investment between our two nations, helping to secure the UK’s place on the world stage.”