London Development Authority Under Fire for Closing Offices in India
Tuesday, February 16th, 2010
With India being the second-largest investor in Britain, with Indian businesses generating about 14.4 billion pounds in annual business, the London Development Authority has come under fire for what looks like a closing of the offices in major Indian cities: Delhi and Mumbai.
The purpose of the closing would be to save about 1 billion pounds, but many consider that a steep price to pay with the potential loss of business from Indian companies.
Much of this was discovered when two London representatives operating in India weren't replaced after they had left the country.
A spokesman for the LDA said: "The LDA continues to build on London's relationship with India through its support for Think London, the capital's foreign direct investment agency.
"We are currently evaluating the use our additional resources in India to ensure that we are delivering the best possible value for money and that our representatives contribute to the promotion of London in the most effective way."
There was a strong backlash to the perceived move, as the London office had been set up by former London mayor Ken Livingstone, and current London mayor Boris Johnson is receiving a lot of pressure from a number of people and groups to keep the offices open.
London business and labor concerns were particularly adamant that the Indian business offices continue to operate, saying if the London mayor won't do it, their competitors in New York, Paris, or Sydney will be more than willing to do it.
It was added that while there may be some short term gains for costs to the city, the long-term losses would far outweigh those permanent losses.
Article by Gary B
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: british business , india business , london business , london development authority
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