British prime minister David Cameron pushed for wider trade opportunities in India during a visit last month of the largest trade delegation taken by a British prime minister to any country to date. The delegation included over 100 representatives from multinational companies, small and medium-sized companies, law firms, universities and the government. Two lawyers – Amarjit Singh, a solicitor and head of the Indian business group at Dutton Gregory, and Tony Angel, a partner and joint global co-chairman of DLA Piper, were chosen to accompany Cameron on the historic visit to Mumbai, New Delhi and Amritsar.
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The UK is the third largest investor in India and India is the fifth largest investor in the UK. In 2010 and 2011, trade between India and the UK grew by approximately 23%.
At a press briefing in Amritsar, Cameron said he was pleased with the state of relations between Britain and India, highlighting progress on economic, trade and commercial ties and heightened interest in healthcare, education, energy and infrastructure.
He stressed that Britain wanted to be India’s “partner of choice”. Speaking at the office of Unilever in Mumbai, he said the relationship between the two countries could and would transcend business partnerships. ”I brought some of Britain’s biggest and best companies here to India, but I’ve also brought the Premier League, I’ve bought some of our top universities, the British Museum; we want to tie up in so many different ways with your culture, your companies, your businesses and, of course, your people,” he said.
He added that Britain was keen to help India’s government and Indian companies fulfil their goals of increasing and improving university education, enhancing healthcare services, building townships and developing the corridor between Mumbai and Bangalore.
Cameron urged the Indian government to create avenues for more foreign investment and to liberalize more sectors of the economy, in particular the insurance and banking sectors, to allow for greater British participation.
Singh, who participated in meetings to explore increased liberalization in the banking, legal services and financial services sectors, told India Business Law Journal: “It was recognized that Mumbai had to create a cluster effect of bringing together the key professional and financial services organizations similar to the set-up in London. Other key sectors highlighted during the visit were infrastructure, heath, education and skills, and research and development, where the UK has particular strengths to collaborate and add value,” Singh said.
“One of the key messages [Cameron] focused on was the importance of small and medium enterprises in India’s ever diversifying marketplace,” Singh added. “In my experience, SMEs are a robust vehicle poised for capturing a slice of the unprecedented growth that India has experienced over recent decades.”
During the visit, UK Foreign Office minister Hugo Swire signed a memorandum of understanding (MOU) on security collaboration with the Defence and Research Development Organisation, under India’s Ministry of Defence. In addition, Cameron and Indian prime minister Manmohan Singh acknowledged the signing in October 2012 of an Amending Protocol of the countries’ Double Taxation Avoidance Convention, which aims to provide tax stability to Indian and UK residents and facilitate bilateral economic cooperation. The two leaders also reaffirmed their commitment to EU-India dialogue for an ambitious free trade agreement.
Cameron’s visit follows a trip by French prime minister Francois Hollande early last month. Hollande was accompanied by five ministers and senior executives from more than 60 French companies. The French and Indian prime ministers signed several agreements during Hollande’s trip including an MOU to strengthen technical cooperation in India’s railways sector and pacts to collaborate on education, space research and exchanges between artists, architects, students, teachers, researchers and athletes.
France’s Dassault Aviation hoped to confirm the sale of 126 Rafale jets to India but the US$12 billion dollar deal is yet to be finalized.
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