UK, India to focus on automobiles, healthcare  ( January '17,2006, FE)

Calling automobiles and healthcare among the sectors in which Indian and the UK economy have “complementary strengths,” UK trade minister Ian Pearson admitted that “there are (unresolved) issues here (in India)” that need to be taken up at the government level. As for Indian services companies, including software firms, the UK should be the logical choice to internationalise and be used as a base in Europe, he said.

On WTO, Mr Pearson said, India can gain from an “ambitious deal” in services. “I’m afraid we are approaching ‘the territory of last chance’ to do the deal on Doha development agenda,” Mr Pearson said, adding that he saw chances of bilateral dialogue in this regard taking place at Davos (World Economic Forum meet). At present, UK investment in India accounts for about 60% of the EU investment in India or about $1 billion per annum. The India-UK trade is of the order of $10 bn and growing at a healthy rate of over 25%.

Soon, Indian investment in UK will exceed UK investment in the country, Karan Bilimoria, chief executive of Cobra Beer and chairman of IBPN, told FE. The 25-strong IBPN business delegation comprises Thomas Harris, vice chairman, Standard Chartered Bank and Barry Humphreys, director, Virgin Atlantic. u Recently, the UK Listing Authority had waived the condition of mandatory compliance with International Financial Reporting Standards for LSE listing. Compliance with Indian accounting norms would do. The exemption would ensure continuity for Indian GDR and FCCB issuers.

Mr Pearson and his team will be in Chennai on Tuesday. The minister will address the Confederation of Indian Industry (CII) partnership summit in Kolkata on Wednesday.