India is a growth market of the future - BTI CEO

By V. Jayanth

With a 34 per cent increase in bilateral trade in the first 10 months, Britain and India are confident of achieving the target of 5 billion pounds in the year 2000.

During the East Asian crisis in 1997-98, there was a sharp decline in bilateral trade. But that trend has now been reversed and the two countries seem to be heading for new era of trade and investment partnership. Despite a slowdown in trade in 1998-99, the U.K. was now India's second largest trading partner and the largest cumulative investor in India - the third largest share since 1991.

``We are right in paying a lot of attention to India, which is a growth market for the future. We have a strong sense of commitment that Britain has to be more active here,'' Sir. David Wright, Chief Executive Officer, British Trade International (BTI), told The Hindu here today.

``From this area, described internationally as the Silicon Triangle of India - Bangalore, Chennai and Hyderabad - I take back a sense of opportunities in the IT sector. Already a lot of companies are engaged in excellent partnerships. We need to do more of the same, faster and harder,'' Sir David Wright said.

The BTI was set up only in 1999 to create a single umbrella organisation to promote British trade and investment flows around the world. In 18 months, it has taken on all the responsibilities and that itself is being seen as a kind of achievement.

Its CEO, now on a visit to India to interact with officials, industrialists and his own staff in the country, made it clear that India was also emerging as a major investor in Britain. About 200 Indian companies had already set up shop in the U.K. and there was growing interest in Britain.

Sir David Wright did not want to ``over-do'' the focus on IT, but emphasised the reasoning that the Silicon triangle of the south had already attracted international attention and Britain was trying to emerge as a `centre of excellence' in this area. The potential for partnership between India and Britain was significant. But he hastened to explain that the traditional sectors of the economy such as pharmaceuticals, machinery, heavy industry and power continued to be of great interest.

The U.K. was also a key destination for Indian investments in Europe, attracting 33 per cent of all investments in Europe. The Indian software sector had shown a significant growth in its share of Indian investments into the U.K, accounting for 24 per cent in 1998, 21 per cent in 1999 and climbing to 51 per cent in the first five months of 2000. Several innovative schemes had been launched to tap this potential.

In his interaction with both officials and businessmen here, he was convinced, ``We are speaking the same language. It is the same vocabulary of global markets, modern technology, letting the markets do the job, opening up more sectors of the economy and link between hitech and education. We are trying to reach the same objectives.''

The CEO said British business and industry was ``comfortable'' working with India and convinced of the opportunities available. They wanted to take advantage of them, even while exploring the possibilities of working together to enter new markets and third countries. That was already happening in a few areas.

Apart from the historical links, he said, ``The U.K. naturally values its relationship with India because we both talk the same language - of democracy, freedom, respect for human rights, international cooperation and common responsibilities. We are engaged on the same international agenda.'' So Britain put India in a particular category to work together. A partnership initiative was launched in the mid-1990s, recognising the potential of India and this was now being reinforced and strengthened.

He said education was another area of interest. India was traditionally a `large market' for selecting students to study in the U.K. It also enjoyed the largest number of scholarships at the post graduate level. ``Our Prime Minister recognised the role of education and of Britain as a centre of excellence. He wanted to sell it and we are now engaged in launching an educational brand for Britain. We have also realised the potential and access of distance education'', he added.

While in Delhi, Sir David Wright focused on interacting with the Government and the Confederation of Indian IndustryI. In Chennai, he met the cream of the business community from the South. He will be in Mumbai tomorrow to meet industry and trade there. The focus there will be on the financial sector and services.

Send this article to Friends by E-Mail

Section  : Business
Previous : Aptech Internet's new initiative
Next     : Plantation sector in dire straits