India is a dominant force in the financial technology sector globally with 29 per cent annual returns on investments, a report released by the City of London Corporation said today. The Corporation — the municipal governing body of the British capital — released the report as part of its launch of a new “Asia Next Decade” campaign.
The ‘Asia as a financial services partner for London’ report also found that the “demonetisation wave” in India led to a 1,000 per cent increase in demand for digital transaction technologies last year after the government banned the high-value bank notes of Rs 500 and Rs 1,000.
“Annual returns on FinTech (financial technology) investment in India are highest worldwide at 29 per cent, compared to Asia’s average of 25 per cent and the global 20 per cent standard,” the report, collated by Asia House, said.
The research shows that Asia is the fastest growing trade partner for the UK and is forecast to account for around half of the world’s GDP by 2030.
In 10 years’ time, China and India will be the first and third ranked world economies respectively, while Indonesia is projected to be the world’s fifth biggest economy in 2030, just below Japan, based on Purchasing Power Parity (PPP).
This “explosive growth” represents a general trend across the 10 countries that represent the Association of South East Asian Nations (ASEAN), which as a trading bloc is set to become the world’s fourth-largest market by 2030.
City of London Corporation Policy Chairman Catherine McGuinness said: “As the UK prepares to leave the European Union (EU), one thing the government has made clear is its ambitions to help companies expand their operations across the world.
“Asia, which by 2025 is forecast to account for nearly half the world’s GDP, is a crucial part of this ‘Global Britain’ vision”.
The City of London Corporation provides local government and policing services for the financial and commercial heart of Britain, known as the “Square Mile” of London.
Its remit includes supporting and promoting the “City” as a world-leading financial and business hub.
The new Asia Next Decade campaign comes as the corporation celebrates the 10-year anniversary of representative offices in Beijing, Shanghai and Mumbai, all of which will hold special events to mark the milestone.
“In 2018, the City of London is committed to driving growth through partnership. This is the beginning of City of London: Asia Next Decade,” said City of London Corporation Special Adviser for Asia Sherry Madera.
A new website, cityoflondon.gov.uk/asianextdecade, invites industry partners to submit their views on Asia and ensure London’s comprehensive engagement with the region.
UK Foreign and Commonwealth Office (FCO) Minister for Asia and Pacific Mark Field described London as “a beacon for Asia”, which will continue to hold on to its premier position post-Brexit.
“Our country stands on the threshold of a new era as we leave the EU to forge an independent future, and as Minister for Asia, I am committed to promoting London’s offer to the fastest growing and most dynamic region in the world,” he said.
The City of London Corporation claims its dedicated Asia Programme has a goal to secure the British capital’s future as the most global financial centre and to create platforms for Asia-focused business growth in the city.