Press Clippings
Courtesy : The Hindu

Wednesday, January 18, 2006

Tamil Nadu can "impact India's trade with Britain"

Chennai's robust industry makes it important for U.K. to maintain ties with State, says U.K. Minister

CHENNAI: Hailing the industrial progress of Tamil Nadu, British Minister for Trade Ian Pearson and leaders of a 20-member business delegation that accompanies him said the State had the potential to enhance significantly the trade between India and the United Kingdom.

Chennai's robust and diverse industry made it important for the United Kingdom to develop and maintain relations with Tamil Nadu, the Minister told presspersons here on Tuesday. Besides information technology and software, automotive, healthcare, textiles and agriculture were some of the areas in which there could be strong cooperation between the State and the U.K.

Mr. Pearson, who earlier addressed an Indo-UK seminar, held discussions with senior officials of the Government and visited Scope International, the global back office operation of Standard Chartered Bank, described Tamil Nadu as a "strongly growing" economy.

Karan Bilimoria, chairman, Indo-British Partnership Network (IBPN), said Tamil Nadu was the best example for the right mix of the manufacturing and services sector. India had come to be mentioned in the same breath as China in the U.K. for its "huge manufacturing base."

To queries on the emphasis laid by companies on outsourcing, Mr. Pearson said: "We will produce a document on outsourcing and off-shoring." Declining to give any detail, he said outsourcing had become a "business reality," and the trend was expected to continue since it helped the U.K. companies stay competitive and cut costs.

The British Government was aware of the employment problems associated with outsourcing. Efforts were being made to help those losing jobs in the process to "re-enter the labour market."

On his recent call for a free trade agreement between India and the European Union, the Minister said though the successful conclusion of the Doha Development Round agenda was the priority, the EU also sought to explore the potential of free trade agreements, including one with MERCOSUR, a common market created by several South American countries.

As for the Hong Kong Ministerial Conference of World Trade Organisation, he said though the U.K. did not believe in forced liberalisation, there was a need for developing countries such as Brazil and India to "bring something to the position." He said barring "some movement" in agriculture and industrial tariff, the outcome was disappointing.

Addressing the seminar on financing growth in emerging economies, organised by the Chennai chapters of Young Presidents Organisation and Young Entrepreneurs Organisation, Mr. Pearson said 74 per cent of investment by the U.K. companies were in Tamil Nadu.

Mike Connor, British Deputy High Commissioner in Chennai, spoke.

Shailendra Vyakarnam, director, IBPN, and the Centre for Entrepreneurial Learning of the University of Cambridge, said there was considerable scope for bringing Indian and British technologists closer through an entrepreneurship programme. Discussions would be held with the IITs (Indian Institute of Technology).