India: visit by Secretary of State for business, innovation and skills
Published 21 October 2014
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0.1 This publication was archived on 5 August 2016.
This article is no longer current. Please refer to Overseas Business Risk – India
0.2 Summary
During a four state tour of India, Business Secretary Vince Cable’s message that we remain the top G20 investor in India resonates well. He makes a compelling case to key Indian politicians and business leaders that the UK, and UK business, can help build a modern India. He underlines that the UK is open for students by announcing new scholarships and alumni awards. Other highlights include £33m in business deals, a meeting with Tata CEO Cyrus Mistry (the UK’s largest manufacturing employer), the first Ministerial visit in at least a decade to Goa, and a visit to Ashok Leyland in Chennai.
0.3 Detail
The Business Secretary visited Delhi, Goa, Pune and Chennai on 10-15 October with an education and automotive business delegation.
Delhi: key political calls
The Business Secretary called on Finance Minister Arun Jaitley who set out his reform agenda including a commitment to implement a national Goods and Services Tax, worth 1-2% in GDP, and a reduction in energy subsidies. He cited liberalisation of FDI in defence and infrastructure, and moves to improve investor confidence. Coincidentally, [later that day] the Mumbai High Court ruled in favour of Vodafone in a share transfer pricing case worth £323m.
The Business Secretary also saw Roads Minister, Nitin Gadkari. He was especially interested in co-operation on: vehicle licensing, testing and enforcement; inland waterways; hovercraft; modern barges and public private partnerships. He also saw opportunities for the UK in tunnelling and ports. The Business Secretary said the UK would be keen to explore co-operation in these areas.
UK-India business relationship
The Business Secretary spoke to one of India’s major business organisations (FICCI) and to the largest ever gathering of the British Business Group. Over 400 companies participated in sector debates, an exhibition showcasing UK capability, and also heard from leading industry figures including President of the CBI, Sir Mike Rake. The Business Secretary underscored the UK’s position as India’s largest investor ($3.2 billion last year, more than any other G20 country). Among £33m in business deals, he announced Amtek Auto’s investment in Kidderminster to supply components to Ford and Jaguar Land Rover (plus 500 new jobs).
Britain: Open for Indian Students
The Business Secretary countered the myths around access to a UK education which may have contributed to a decline in Indian students. In response to his announcement of the largest number of GREAT scholarships (400 in 2015) and new alumni awards, Indian media reported: “a bonanza for Indian students aspiring for admission to UK universities”. The Business Secretary’s central message encouraging Indians to study in the UK was carried widely, both in national and regional press. His interview with the leading ET-NOW business channel ran for two days, including clips in primetime news.
Goa: First UK Cabinet Minister visit in over a decade
Accompanied by education and healthcare delegates, the Business Secretary visited India’s richest state (per capita). He re-iterated his call to prospective Indian students at the prestigious BITS Pilani’s Goa campus with video links to Hyderabad and Rajasthan. He met Goa Deputy Chief Minister Francis D’Souza, and several major Goan businesses.
Pune - India’s automotive hub
In Pune, the Business Secretary was accompanied by an 18-member delegation of automotive sector businesses and academic experts in low-emission vehicles. At an evening reception they met Indian business, inward investors and members of the Pune British Business Group. A tour of the vast Tata Motors plant with Cyrus Mistry, Tata Group Chairman, and a forum on low-emission vehicles at the Automotive Research Institute of India followed.
The Business Secretary’s meeting with Cyrus Mistry covered a wide range of Tata interests in the UK, in particular issues around Tata Steel.
Chennai
In Chennai, the Business Secretary met with the Chief Minister and the Industries Minister of Tamil Nadu with whom he raised the Chennai 6 case. The Chief Minister invited the UK to participate in the Global Investors Summit – now proposed for next year – and to bring a UK business delegation to Chennai to help realise their ambitions in becoming a Financial Services City.
The Business Secretary, accompanied by the automotive delegation, hosted a breakfast with UK companies located in Chennai and visited Hinduja Group’s Ashok Leyland manufacturing facility in Ennore (they have a sister plant in Leeds). The UK delegation met the major automotive component firms located in Chennai.
The Business Secretary also inaugurated the National Institute of Technology’s new centre in Trichy, part of a UKIERI project to help SMEs identify markets and develop their business. He also met students at Anna University and returning UK alumni supported by a British Council project - a further opportunity to push our education messages.
0.4 Disclaimer
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