Prime Minister Narendra Modi in his recent visit to the UK agreed with his counterpart David Cameron for continuing to work together for creating sustainable, strong, as well as balanced growth, by further improving investments and bilateral trade.
India over the period of time has been able to invest more in Britain in comparison to the combined investment made in European Union. And, for India, Britain has been the largest G20 investor.
For ease of doing business, Modi was able to define some key developments with the UK. The two countries were able to talk on various issues and topic for promoting higher investments.
Some key industries to benefit from Modi’s visit to the UK are as under:
India and UK were able to underline the importance of IT and digital industries. The Prime Ministers agreed on the progress made on 2015 India-UK Cyber Dialogue. Both the countries propagated inclusive, open, transparent and multi-stakeholder system on Internet governance. Agreeing to working together for promoting cyber security, advance voluntary norms and curbing cyber crimes, both the countries now want to promote responsible state behaviour. Both the countries have also agreed to promote public-private partnerships for supporting every aspects of cyber security.
As per Gartner Inc., with Indian Government increasing its spending on the sector – information technology – specifically on services and products by around 5.2 per cent and would touch USD 6.88 billion by this year, it would create higher avenues for digitally-connecting the country. It would also give immense opportunity for people to connect with the Government through the use of mobile devices.
Narendra Modi and David Cameroon have opined that London would play a pivotal role in channeling investments in India focusing on infrastructure and railways.
They agreed on a new MoU for Technical Cooperation in railways, this would boost business opportunities in India in the sector. They also agreed that institutions in the both the countries would be encouraged to develop infrastructure financing, deepening research and development as well as on sharing knowledge. Modi also announced that Indian Government was intending to launch the Government backed rupee bond in London for funding the developing railway infrastructure.
Both the prime ministers were also able to recognise the importance of infrastructure for sustainable development. In the view of this, they launched Low Income State Infrastructure Equity Partnership which is being co-invested by the UK Department of International Development and SBI – State Bank of India. This would provide equity partnerships for infrastructural development of smaller size. Sectors that would get benefitted would be water and sanitation, urban infrastructure and others.
With the announcements made by Bharti Airtel, HDFC, State Bank of India as well as Yes Bank for raising funds through the City of London, it also opens up a lot of opportunity for other Indian private sector players to raise capital from the UK.
Cameron and Modi were happy with the collaboration that was witnessed in the financial domain for helping key business and creating new Chevening Financial Services course that was sponsored by Standard Chartered. This course has been instituted for mid-career professionals who want to study in Britain. In terms of policy making, both the prime ministers also agreed to launch exchange programme – for the first time – with the economic services for supporting in the making of economic policy.
The UK and India announced deals close to GBP 9 billion, along with signing the civil nuclear pact. They have also decided to collaborate in the sectors such as cyber security and defense. The UK would now become a strong partner with India for plans regarding modernization, which includes ‘Make in India’ initiative, particularly in the defense sector.
Britain and India agreed on a comprehensive package for collaborating on climate change and energy sector. Commercials worth of GBP 3.2 billion has been agreed upon. Joint research programs as well as sharing scientific, technical, and financial expertise have been envisaged in the future[i].
In this package, Britain was able to announce joint venture for UK Climate Investments with Green Investment Bank. They would invest up to GBP 200 million in energy efficiency and renewable energy in Africa and India.
The leaders expressed their thoughts on promoting innovation leading to growth in the Indian automotive sector. They also agreed on exchanging and collaborating technical knowledge in the field of research and development, testing systems for automobiles in India. Both the countries agreed to share expertise for developing knowledge as well as experience. They plan to achieve this by signing a MoU between the departments as well as agencies under Indian Government and the UK.
While, deals worth GBP 9 billion were signed between India and the UK, the number is expected to get on a much higher side with India opening its door and easing policies for the UK investors and companies to set shop in the country.
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