UK firms to actively help Modi's 'Make in India': UK trade minister

Says positive decisions by Modi govt to help eradicate barriers

Visiting British minister Lord Livingston said on Monday the two-way trade and investments between India and the UK would increase, as the Indian government has promised not to impose any retrospective taxes.

Besides, Livingston said the Goods and Services Tax regime will take away barriers, especially when India is a huge market with 1.2 billion people and acts as a single market.

Further, the government’s move to increase ownership limits will be quite crucial. Livingston, accompanied by the  Maharashtra industries minister Subhash Desai, was speaking to Business Standard after Maharashtra Industrial Development Corporation and UK India Business Council signed a memorandum of understanding.

“There are certain cases (such as Vodafone) that are already running and which are in the legal process. Further, there is a realisation that retrospective legislation is not to encourage strong level of confidence. I can fully understand that there is a predictability the people understand the laws and rules they are operating under and from that they get confidence. I think that is quite crucial.  I got a message from Prime Minister Narendra Modi and Finance Minister Arun Jaitley that they understand businesses have predictability about the future investments and this is also in the UK as well,” said Livingston.  

He observed that things won’t change overnight but there has been positivity about Modi’s administration, as there have been some movements, number of plans in terms of GST and raising of threshold limits for investments.

“I should say the UK is the largest G-20 investor in India and a long-time investor. More than 700 UK companies are already in India so also Indian companies present in the UK. I can say the UK companies will be actively associated with Modi’s Make in India project,” the minister said. He said UK companies will invest in whole range of industries, including gas and petroleum, information technology, telecom, banking and finance, manufacturing and couple of other sectors. 

“Both the countries are keen to pursue new opportunities to develop deeper business ties,” he noted. Livingston said the UK was supportive of India signing free trade agreement with the European Union and hoped the talks would recommence soon.