Football Association chairman Greg Dyke had said a City title win would be 'depressing', after Manuel Pellegrini's men won the league on Sunday.
Goalkeeper Joe Hart and Milner were the only two Englishmen who played regularly for a City squad littered with overseas stars.
But Milner, who was named in England's 23-man FIFA World Cup squad on Monday, said he had only improved playing alongside the likes of David Silva, Sergio Aguero and Yaya Toure.
"It would be better for England if the percentage of English players was higher in the Premier League," he said.
"Some teams have got more, some have got less but overall the percentage is the lowest it's ever been, but you can't say it's just Manchester City.
"I've been here four years playing alongside David Silva, Sergio Aguero and these kind of stars, and I’m a better player than I was four years ago.
"You're constantly fighting for your place. You're under pressure every time you step out on to the pitch.
"When I go into World Cup games it will be no different to the pressure I face every week to keep my place in the team – and that's what will help English football."
Milner has a year remaining on his contract at City, but his future remains unclear after just 12 league starts this season.
The 28-year-old undoubtedly wants to remain at the club as City target an elusive UEFA Champions League title.
"Do I want to stay? I've just won the Premier League and I've loved every minute of being at Manchester City," Milner said.
"I've been here four years and I have a year left, so we'll have to see what happens over the summer. We’ve won two trophies this season and I came here to win trophies.
"I want to contribute to the club as much as I can and help us move forward.
"The next thing we need to win is the European Cup. I've been lucky enough since I've been here to win every domestic trophy, so that's the next one."
