India-UK Bilateral Trade Grew 20% In 2010.

It has been a year since the UK’s Prime Minister, David Cameron, made a highly successful visit to India, which helped to strengthen our bilateral relationship and build on our already-strong trade and investment ties. Now we have published figures to show how many companies from overseas are investing in the UK, and these have demonstrated just how important a partner India is for the UK.

In terms of inward investment, India ranks third: up from fourth last year. This is a clear indicator of our growing relationship and shows that, despite global economic uncertainty, the UK remains one of the most attractive locations for foreign business. In fact, in 2010, bilateral trade between the UK and India grew by 20%, bringing the total to £13bn. UK goods exported to India grew by 38% and goods imported from India rose by 27%.

The trade and investment relationship between the UK and India is very diverse, covering sectors from infrastructure and education to life sciences, financial services, engineering, energy and the environment. And there are also strong collaborations in new, innovative and creative technologies.

This growth is encouraging, but we have the potential to do even more. As Indian companies globalise, and demand focuses on international goods and services, there is an increasing awareness of the world-class expertise and experience UK companies can offer Indian partners. And UK businesses are increasingly looking for new opportunities to take these partnerships forward.

Companies deciding to establish themselves in the UK have made a long term-decision. They have taken a view that if they invest their time and money, they will see a good return on this investment. They are right. Companies such as Tata have rightly viewed the UK as a springboard to the rest of the world. They are now among the UK’s largest manufacturing employers.

Of the 1,200 Indian businesses in the EU, 700 are in the UK, joined by increasing numbers of new investors. They see the UK as the best place to do business in Europe, with access to international markets, a highly trained workforce and one of the most open and welcoming global economies.

Our two governments are working closely together to realise the potential of our strong trade and investment relationship. Since the UK Prime Minister’s visit last summer, we have set up a bilateral infrastructure group, taken forward cooperation on road building, had the first meeting of a bilateral CEOs Forum, and are seeing concrete action from a revitalised Joint Economic and Trade Committee. We also look forward to the successful conclusion of the EU-India Free Trade Agreement this year, which will further boost trade and investment.

Ultimately, the UK wants to increase opportunities for investment that will deliver profits, create jobs and make sure the UK remains the best place to invest and grow in Europe. Over the next few years, we will begin an ambitious programme to modernise roads, utilities, ports, railways and digital communications, to ensure that we have the ideal infrastructure to support businesses well into the future. Infrastructure is itself a major investment opportunity, and over the next few years we want to encourage companies working in this field to think about investing in the UK.

Our strategy is a whole-of-government approach to supporting investors’ interests in the UK. Through all departments, we will support investors and make this their location of choice to set up and to grow. We believe passionately in being open to business, because we know that when foreign companies invest and succeed, we can succeed too.

The author is minister of state for trade and investment, UK

Source : financialexpress.com