European Investment Monitor (EIM) has rated India as the second largest investor in the UK, behind the US which maintained its predominance as the single largest investor in Europe.

Overall Indian investments into Europe increased by 66 percent, E&Y said.

Current Flow of FDI
USA 31%
India 16%
France 7%
China 6%
others 9%

Last year, 22 Indian companies set up shop in London and are likely to generate up to 400 new jobs in London.

Among the new Indian investors in 2005 were the Bangalore-based Microland, which is expected to create approximately 50 jobs at a new City centre location, and Northgate Technologies, which hopes to create up to 70 jobs at its offices near Canary Wharf.

“London is set to overtake Paris and Chicago as the fourth largest economy among world cities by 2020, according to a recent” report by PricewaterhouseCoopers.