London Mayor to reconsider LDA's decision to close its offices in India

After top British business leaders criticised the London Development Authority (LDA) for closing its offices in Delhi and Mumbai as a
Visa cost-cutting measure, the London mayor's office is reconsidering the decision.

The London mayor's economic development agency has revealed that it is reviewing its presence in India after it emerged that two representatives working in the country had left and have not been replaced.

An LDA spokesman 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".

He added: "Building relationships in this important market remains a priority and the work in India is ongoing. The current review will give us an even better understanding of how to invest our limited resources to achieve the maximum benefits in this area."

But London Assembly Labour group member and former LDA vice chair, John Biggs, said the Mayor carried out a review last year which suggested keeping a presence in India and so this is disappointing, and looks like a retreat.

"To not have a voice in one of the strongest growing markets and a growing source of potential inward investors is short-sighted, particularly given the importance to London of its international trading position and the importance of being the European destination of choice for Indian firms," Biggs added.

The offices in Delhi and Mumbai were set up by London mayor Boris Johnson's predecessor, Ken Livingstone, to help forge close trade and business links between London and India.

Official figures reveal that India is the second largest foreign investor in London, after the Unites States, with Indian-owned companies generating more than 14.4 billion pounds a year.