BRITISH PRIME minister David Cameron began a visit to India yesterday that is aimed at winning over a key business partner to stimulate the UK’s economy and generate employment.
Mr Cameron’s aggressive charm and business offensive on its former colony kicked off encouragingly during his first stop at Bangalore where a $779 million (€599 million) contract was signed for 57 additional BAE Systems Hawk advanced jet trainers for the Indian military.
Engine maker Rolls-Royce also announced that it had separately clinched a £200 million (€240 million) deal to supply engines for the 57 jet trainers for the Indian air force and 17 for the Indian navy. These would be built locally by Hindustan Aeronautics Limited in Bangalore, capital of India’s burgeoning software industry.
British business secretary Vince Cable also announced that the UK government would begin issuing licences to its civil nuclear firms to export equipment to India, potentially worth billions of pounds.
This follows the landmark 2008 civilian nuclear deal between India and the US which ended New Delhi’s nuclear isolation that followed its maiden atomic test in 1974.
Leading a 90-strong delegation-including six ministers and prominent British businessmen – said by Downing Street to be the largest in living memory – Mr Cameron hopes to forge a “new special relationship” with India.
“I know that Britain cannot rely on sentiment and shared history for a place in India’s future,” he said. “I believe Britain should be India’s partner of choice in the years ahead. Starting this week, that is what we are determined to deliver.” He wanted to renew the bilateral relationship making it “stronger, wider and deeper”.
Mr Cameron and his team will be in New Delhi today where they will meet Indian prime minister Manmohan Singh and seal trade deals and cultural agreements. Mr Cameron was expected to ask India to reduce trade barriers in several areas, including banking and defence manufacturing, while Mr Singh is likely to raise concerns about British efforts to staunch Indian immigration.
Mr Singh is also expected to stress India’s continued presence in Afghanistan where it is involved in reconstruction and infrastructural development despite nuclear rival Pakistan’s objections. He will also reiterate Delhi’s long-standing demand to become a permanent UN Security Council member for which it needs London’s backing. The sensitive issue of Britain’s decision to cut $464 million in annual aid to India is likely to be addressed at bilateral forums, officials said.
Britain was the fifth largest exporter to India in 2005 but has since fallen to 18th position. Exports to India dropped from $6.4 billion in 2008 to $4.5 billion a year later. Mr Cameron hopes to tap into India’s booming economy, which was one of the first to overcome the global financial crisis, boasting a growing, consumption- hungry middle class and a growth rate forecast to reach 8.5 per cent this fiscal year.