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| UK bats for opening of India's financial sector |
| BS Reporter / New Delhi Jul 30, 2010, 01:04 IST |
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Britain today urged India to “take on” vested interests, bite the bullet and open the retail and financial services sector, in the interests of mutual benefit.
“Just as we in Britain are a very open economy, welcoming investments, you too in India should. In banking, insurance and retail, there are further opportunities for openness that will benefit both countries,” said British Prime Minister David Cameron, while participating in a panel discussion on Indo-UK trade.
“We are keen to discuss these issues with our Indian friends and colleagues. We have strong financial, insurance and banking services,” he said.
Repeating this at a press conference later, Cameron said Britain would press for the EU-India Free Trade Agreement. On the Indo-British civil nuclear agreement, Cameron said more consultations were required.
It was clear where Britain’s interests lie. Cameron said his country was re-building some of its manufacturing industries, for which investment from India would be welcome. The British Prime Minister also sought India’s help to expand economies in Europe, where some of the countries are facing the sovereign debt crisis.
“We have to work with friends, including India, to bring what we think will be the biggest stimulus to our economies — expanded trade, completion of the Doha Round and looking at investment in each other’s countries.”
Britain is witnessing sluggish recovery after being hit by the global financial meltdown in 2008-09. Faced with spiralling fiscal deficit, the government has resorted to massive austerity measures. Its economy grew by just 1.1 per cent in the second quarter of 2010, after clocking 0.3 per cent expansion in the previous three months.
The engagement with India was aggressive and unabashed. “There’s been a certain amount of complacency in the past ... a belief that sentiment was enough,” Vince Cable, business secretary in the new coalition government told ministers and business leaders in New Delhi.
Cable said it was time for Britain to “understand and respect that India has made enormous changes”. In this remark lay a subtle reproof of the previous Labour government that had other foreign policy priorities, over ties with India, and made China its preferred partner.
Prime Minister Manmohan Singh was pleased at the accolades but did not allow himself to be swept off his feet. He reminded Britain that “India offers a large market, a young and creative population and a stable investment climate. It also offers the prospect of a steadily expanding market. Despite the global economic downturn, we are poised to return to a growth trajectory of 8 to 9 per cent per annum”.
Seeking cooperation in Indian education, Cameron said, “I think we have some of the best universities of the world and I have brought 14 Vice-Chancellors with me. We have one of the strongest science bases in the world and we brought institutions like Welcome Trust with us.”
Explaining further, he said Britain possesses expertise in civil nuclear power. “We are opening conversation with you on that front. We have a very strong defence industry and I am delighted to see the BAE-HAL agreement. I think we bring lots of expertise we can share with you,” he said.
On investment opportunities in his country, Cameron said, “We have the English language, we have a time zone between America and Asia. We have access to European markets. We have a highly trained workforce and as I have said, we are one of the most open and welcoming economies.”
To a query over whether capping immigration will hamper investment from India, Cable said the agreement between coalition partners of the ruling regime in Britain have agreed to form a pact on immigration outside the European Union, but it will not hamper investments from India.
“I don’t think so (when asked if the immigration pact will impact Indian investment). You can be assured that the system we are going to introduce will respect the needs of foreign investors,” he said.
It was not just diplomatic business for British premier David Cameron in India. But the ardent cricket lover in him will also take back fond memories of his first India tour back in London.
Cameron was visibly delighted in his press conference in the evening when he recalled his encounter with Indian cricket legend Kapil Dev. “My dream came true when I hit Kapil Dev for a six today at the hockey stadium,” Cameron said. “But he was bowling with a tennis ball which made my life much easier.”
Incidentally, among other achievements, Kapil Dev had led India to its World Cup cricket victory in England in 1983.
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