Trade Ties Between India and UK: Need for Political Engagement

Trade Ties Between India and UK: Need for Political Engagement

Question: Trade ties between India and UK must be supplemented by deeper political engagement for better bilateral relations. Elaborate.

- India is the third largest investor in Britain after the US and France

- Successful trade ties must be supplemented by political engagement as well

- Britain is the only major country in the West which has not received a foreign visit from the PM so far

- Last prime ministerial visit was by ex PM Manmohan Singh

- At the juncture of the British economy, close to 1000 Indian companies operate in the UK currently

- They employ around 1,20,000 people and generate numerous jobs

- There has been an unprecedented surge in investment levels in India during the past year which is an increase of 65% over the previous year

- Importance of Political Engagement

- Britain is the world’s top investment destination in Europe

- Considerable Indian investment in financial value is accounted for by leading companies such as TATA and Mittals

- TATA Motors accounts for 90% of the Euro 190 bullion turnover of 41 fastest growing Indian firms in the UK

- Britain needs foreign investment to revive businesses and generate jobs as well as assist with skills development

- India is the perfect fit because it is one of the most rapidly growing economies

- India has a deep sense of natural affinity with the British

Facts and Stats

- Indian projects in the pipeline include Euro 100 million investment by Cipla in UK pharma sector

- Another milestone investment is Euro 20 million injection into the British economy by Mahindra in developing electric car technology

- Indian trade with the UK still has to catch up to reach the 2010 target of doubling bilateral trade to Euro 23 billion by 2015