India, UK should work for reforms in global fin system: Prez

I / London October 29, 2009, 9:42 IST

India and Britain have a responsibility to work together for "long overdue structural reforms" of the global financial system in the wake of recent global downturn, President Pratibha Patil has said.

"We are happy that our two countries, along with the other major economies of the world, have been able to demonstrate the virtue of working together to deal with the global downturn.  

"I believe our two countries have a responsibility to consolidate this process through the long overdue structural reforms of the international financial system," Patil said at a reception hosted for her by London Mayor Boris Johnson last night.

75-year-old Patil made a strong pitch for making investments in India which, she said, provides enormous opportunities for investment and is ready to assume its responsibilities in this "reformed international system" emerging after the global downturn.

"My visit is taking place at a time when the global economy, which had been confronted by an acute economic and financial crisis, appears to be on the path of recovery," she said.

The President said India offers huge investment potential in diverse sectors like infrastructure, retail, real estate, automobiles, food processing, information technology, knowledge process outsourcing, business process outsourcing, healthcare and telecom among many others.

"In the infrastructure sector alone our investment requirements are expected to exceed $550 billion over the next five years," Patil said.

The President, who is the first Indian head of state to visit United Kingdom in last 20 years, said the British experience of public-private partnership and public sector capacity building would be especially useful to India.

"We look forward to significant investments from the City of London in this sector," the President said.

"The UK is the fourth largest investor in India, while the UK is the second most favoured destination for investment by Indian companies. The Indian companies last year secured more than 20,000 jobs. This is the second highest number of jobs secured by a foreign employer in the UK," she said.

The President said availability of cheap consumer finance has served to increase disposable incomes.  "These factors have generated a growing demand for a variety of quality products and services ranging from home appliances and electronic goods to restaurants, travel, communication and entertainment," Patil said.