How South Asian businesses are boosting London's economy

Generating £37.4 billion turnover in London alone, could South Asian businesses save the UK from Brexit uncertainties?

By Shannon Weir

South Asians are the largest ethnic minority group in the UK with 12% of Londoners identifying as British Asian and at least 6.9% of London’s population being born in India, Pakistan or Bangladesh. Therefore it’s no surprise that Asian owned businesses make such a large contribution to London’s economy, mainly through their investments into the capital and the amount of jobs their businesses bring to the city. With Brexit looming and a potential loss of European trade, CEO of Croydon BAME Forum, Andrew Brown believes that strong International business ties are becoming even more essential for the stability of the UK economy.

Brick Lane in London's east end is home a wide range of Asian businesses. Photo courtesy of Jason Paris

However, Indian born owner of Dark Wear clothes shop, Azhar Mohammed thinks the UK may face a shortage in South Asian owned businesses following Brexit. Mohammed says: “Thanks to Brexit, business is now slower and no one wants to invest. It has also encouraged a lot of racism.” He goes on to explain that South Asian business ties could benefit the UK following Brexit. But this would not be the first time South Asia has helped to rebuild the UK economy.

India- EU relations date back to the 1960’s, when the European economy was suffering and unemployment rates where high due to a recession. To help restore the economy, Europe began to tap into trade opportunities offered by India. This encouraged the birth of the Indo European Business Forum (IEBF) in 2007 which works to boost the economy in both Europe and India by supporting business developments and increasing employment rates. The IEBF also works to support each government in a free trade agreement.

Worker at Indian Restaurant Namaste Kitchen, Sahil Basricha worries for the future of South Asian businesses in the UK following Brexit and fears that the unstable economy will encourage Asian migrants like himself to take their business elsewhere.