The project aims to enhance mutual economic prosperity, human capital development and social welfare. Using a systematic multi-disciplinary approach, the project focuses particularly on ecosystems for technology-based entrepreneurship including in financial services and FinTech. For more details, the project website is available at www.effectec.org
Context
India is estimated to have more than 1 billion people in the working age group by 2050. The UK is fifth largest economy in the world, with a large established industrial and financial services base. There are strong trade and social partnerships between India and the UK, with a vibrant culture of knowledge sharing and institutional development. Bilateral trade between the two countries was valued at $18 billion in 2017. About 800 Indian companies are estimated to be operating in the UK, creating around 110,000 jobs and generating combined revenues of about £47.5 billion.
The changing world order has been creating new environments for cross border collaborations in the future. The digital financial sector, or FinTech, has been an active driver for digital entrepreneurship in both India and the UK. In the UK this has been based on the existing ecosystem for financial services with about 89,000 finance and insurance firms. London ranks second globally in the number of its FinTech. While there has been some work on examining the nature of industry, in terms of the business functions involved, the institutions that support it and the technologies, there is little research on how this sector interacts with the rest of the economy and can serve as a bridge between nations.
This project will examine the topics of trade, entrepreneurship and knowledge economy through six research themes. Each of these will be analysed using a mixed-methods approach, involving both primary and secondary data. The study of these three themes of the dynamic start-up landscape of India and UK will provide a 360-degree view of the nature and impact of this part of the economies of India and the UK and provide a basis to make policy recommendations for enhanced sharing of human and financial resources for economic growth. The six research themes are:
- Access, Inclusion and Sustainability
- Trade Policy
- Finance
- Innovation and Technology
- Human Capital
- Culture
The research team is a collaboration between the London School of Economics and the Indian Institute of Technology, India, with partners from Institute of Development Studies, Sussex, and Gokhale Institute of Politics and Economics, India.
LSE Research Team
Dr Ruth Kattumuri is the Co-Chair of the India Observatory at the International Inequalities Institute. Her work focuses on sustainable growth, inclusion and development, with particular focus on education, skills and employability; adaptation and mitigation for climate change, covering the interface with food, water and energy security and low-carbon energy transitions; urban planning and development.
Shantanu Singh is a Research Fellow at the International Inequalities Institute. His work focuses on the economics of innovation and technology, labour and entrepreneurship.