Indian and Chinese Markets Entice British Exporters.

British companies are seeking to boost growth further afield than the sluggish home market, China and India being their main targets. As premier David Cameron leads the largest ever trade mission to China this week, accountants Ernst & Young have published an eye-opening report, Competing for Growth.

The report takes the opinions of 1,400 company bosses worldwide, 80 of them in the UK, and predicts a clear business thrust towards the east over the next two years. Western Europe accounted for 64 per cent of the UK’s business growth through the downturn, with 24 per cent coming from Canada and the US. British business leaders forecast, however, that the figure for Western Europe will shrink to 48 per cent, the North American figure to 15 per cent.

Meanwhile trade with Brazil, Russia, India and China (BRIC) is expected to surge dramatically. Over the past two years the percentage of British firms expecting growth with China, has increased from 11 to 29 per cent. On the other hand, there has been a rise in the number of German companies believing that traditional markets will attract more growth.

Steve Varley of Ernst & Young quoted new statistics showing combined UK exports to China and India totalled £11.8 billion, less than half the £23.8 billion figure for exports to Ireland. This, said Varley, highlighted the enormous potential for UK companies in those countries. He praised British firms for heeding the call from the government and the CBI to look east.
Chancellor George Osborne, British Secretary Vince Cable and other ministers are accompanying Cameron on his China visit. The Prime Minister stressed that Britain was “open for business” and was intent on building far stronger ties with China.

Cable said UK firms stood to take great advantage of China’s rapidly increasing domestic consumption. The potential existed in a wide range of sectors, from manufacturing to life sciences.

Source : discountvouchers.co.uk