UK Prime Minister David Cameron urges India to Open up to British business

IndusView, Friday 22 February 2013 (London): UK Prime Minister David Cameron concluded his trip to India this week to meet his Indian counterpart, Manmohan Singh, as well as the Indian president, Pranab Mukherjee, asking them to open its trade doors wider to British business.

Mr. Cameron’s trip, his second visit to India as prime minister, comes days after a similar trade mission by President François Hollande of France, underlining how Europe’s debt-stricken states were competing to tap into India, which has one of the world’s fastest-growing economies.

“Cameron recognizes that India’s got what the British and Europeans want…perhaps even need,” said Bundeep Singh Rangar, Chairman of London-based advisory firm IndusView. “An economy that’s doubled in the past six years, which will double again in the next six years to approach $5 trillion. It’s also underpinned by a demographic advantage. A majority of Indians are still under 40 years of age with increasing discretionary spending.”

At a time when the British government is struggling to get its economy growing, officials see India as a key strategic partner. Mr. Cameron said it himself: he wants the relationship between Britain and India to be “one of the great partnerships of the 21st century“. India and the UK have vibrant economic ties and the two-way trade rose to about £10.58 billion ($16.16 billion) in 2011-12 from £8.22 billion ($12.56 billion) in 2010-11. Mr. Cameron said the countries were "on track" to double overall trade to £23 billion ($35.14 billion) by 2015.

Mr. Cameron said the two countries enjoy a “special relationship,” a term usually reserved for Britain’s ties with the United States, but it is a relationship undergoing profound change. The Indian economy is forecast to overtake Britain’s in size in the decades ahead and to become the world's 5th largest economy by 2020. In a nod to how the relationship is evolving, Britain will stop giving India aid after 2015.

Investors have been clamoring for years for India to open up to more foreign investment, and Mr. Cameron complained Monday that India still had outdated rules and regulations – The government should take more steps to improve the ranking of India from 173rd position by simplifying processes for making it easier for entrepreneurs to start a business.

Another of the trip's aims is to address controversy over the recent toughening of UK visa rules. Mr. Cameron said there was no limit on the number of Indian students that could come to British universities, as long as they had an English language qualification and a place to study. The UK is a popular destination for Indian students, second only to the USA. According to the UK Border Agency, the number of student visas issued from India dropped to 32,000 in 2011 from 41,000 in 2010.

The prime minister also spoke of making Britain's visa system simpler for Indian businesses, by introducing a same-day visa service.

The Indian Prime Minister, Manmohan Singh, expressed his concerns about the AgustaWestland deal since there have been allegations of bribery, which are being investigated by the Italian authorities. AgustaWestland signed a contract to supply 12 AW101 helicopters to the Indian air force in 2010 and employs more than 3,000 people in Somerset, UK. In response, says Britain will cooperate fully in the investigations.

During their talks Mr. Cameron and Mr. Singh also agreed more co-operation between Britain and India in combating cyber attacks, including police training exchanges and research into online security.

The Prime minister visited site of 1919 Amritsar massacre in India, where hundreds of Indian civilians were shot dead by British forces. Past prime ministers have expressed their regret, but Mr. Cameron is the first to pay his respects at the site in person.

Mr. Cameron’s delegation, which includes representatives of more than 100 companies, is the biggest taken abroad by a British Prime Minister. It includes four ministers, nine members of Parliament and companies including BAE Systems, BP, De La Rue, Diageo, the British unit of EADS, HSBC, JCB, Lloyd’s, the London Stock Exchange, London Underground, Rolls Royce and Standard Chartered.