British PM pitches for jobs, trade in India

BANGALORE, India: British Prime Minister David Cameron kicked off a much-touted visit to India, pitching for investment and increased trade to create jobs and boost Britain’s post-recession recovery.

ENHANCING TRADE PARTNERSHIP: Osborne striking the gong to begin the day’s trading at the Bombay Stock Exchange in Mumbai. — AFP photo

“I want this to be a relationship which drives economic growth upwards and drives our unemployment figures downwards,” Cameron declared in a speech in the Indian IT hub of Bangalore.

“This is a trade mission, yes, but I prefer to see it as my jobs mission.”

Accompanied by a bevy of top ministers and a small army of business leaders, Cameron arrived at the head of the largest British delegation to travel to the former jewel in its colonial crown in recent memory.

It has been tagged as a mould-breaking mission to redefine what Cameron’s government sees as a long-neglected relationship with one of the world’s fastest-growing economies.

The trip kicked off in the southern city of Bangalore, where Cameron visited the country’s second-largest software exporter Infosys and the state-run defence giant Hindustan Aeronautics Ltd (HAL).

Among a raft of trade agreements to be signed during the visit, the expected highlight would be a deal worth up to US$650 million for BAE Systems to supply 57 more Hawk trainer jets.

India ordered 66 Hawk jets from BAE in 2004.

All the aircraft in the follow-up deal would be jointly assembled locally with HAL.

Cameron highlighted the recent investment in Britain made by Indian-run companies such as the car maker Tata and steel group Arcelor Mittal, but also pushed India to open up its tightly regulated domestic market.

“We want you to reduce the barriers to foreign investment in banking, insurance, defence manufacturing and legal services; and reap the benefits,” he said, adding that a new global free-trade deal was vital.

Since taking power in May, Cameron has said he wanted British foreign policy to focus more on business in a bid to boost the economy, as it had emerged from recession facing deep budget cuts to combat record state debt.

Apart from a trip to war-torn Afghanistan last month, the visit was Cameron’s first major foray to Asia.

The choice reflects India’s growing regional clout and its emergence as an investment destination to rival neighbouring China.

Among the BRIC group of emerging economies (Brazil, Russia, India and China), India is seen as one of the largest, most culturally-compatible and under-exploited markets for partnerships with British firms.

As one of the first countries to shrug off the effects of global financial crisis, India boasts a growing, consumer-hungry middle class and an economy that is forecast to grow 8.5 per cent this fiscal year.

“This is the beginning of an enhanced relationship,” Britain’s finance minister George Osborne said after ringing the bell to start trading at the Bombay Stock Exchange. — AFP