Boris Johnson closes India ‘embassy’ despite election pledge

Boris Johnson's "foreign embassies" in Delhi and Mumbai have been mothballed amid claims the move will cost London millions of pounds of new business, it emerged today.

The Mayor has revealed that the London Development Agency offices in India have not been staffed since last year. He said the operations — which generate inward investment, jobs, students and tourism for the capital — were under review.

India is the second largest foreign investor in London, after the US, with Indian-owned businesses generating more than £14.4 billion a year.

Business chiefs warned that closing the offices to save money would send out the wrong signals to potential investors. Colin Stanbridge, chief executive of the London Chamber of Commerce and Industry, said: "It is essential that we maintain offices in Delhi and Mumbai so that we can continue to market London in one of the fastest growing economies in the world. If we are not out there selling London as the best place in the world to do business, our international rivals will be more than happy to fill the vacuum."

Graham Capper, of business group London First, added: "If representatives and offices in India are adding value then they should be retained — there's no point saving cash by cutting them if it costs us investment and jobs in London."

However, he said there should be better co-ordination between agencies promoting London abroad — UK Trade and Invest, the City Corporation, the LDA and Think London, its inward investment agency.

In a written Mayoral answer, Mr Johnson said: "We are currently examining options for the most effective method of promoting London's position overseas, including India, and this may involve the option of having overseas representative offices.

"The position in India currently is that the LDA's representatives in Mumbai and Delhi resigned last year and have not yet been replaced pending the outcome of this review."

The LDA has maintained all the necessary licenses and registration to allow the recruitment of new offices should it decide to reopen the Indian ones.

Labour Assembly member Murad Qureshi said: "It is disgraceful that the closure of the GLA's offices in India has been carried out by the back door, without Londoners being informed about the decision to mothball them.

"Developing economies like India's have grown in global importance due to their having escaped the worst of the recession. The Mayor's decision to allow the Mumbai and Delhi offices to close is utterly irresponsible."

Mr Johnson decided last year that the LDA's operations in Mumbai, Delhi, Shanghai, Beijing and Brussels would stay open as they were a good way of promoting London abroad during the economic downturn.

A spokesman for the Mayor said: ""London continues to be actively promoted in India through the capital's inward investment agency, Think London. The two other advisers, who have now moved on, were independently employed by the London Development Agency.

"They will not be replaced until the full review, currently underway, into London's overseas presence is complete. The Mayor recognises that Indian investment is vital to London but is keen to avoid duplication and confusion that may be caused by having representatives from different parts of the GLA group promoting inward investment opportunities in London to Indian investors."