India And Uk Business Development
India has maintained healthy trade relations with almost all the countries.
India, was under British Rule till it achieved independence in 1947. India and UK’s business relations have changed since colonial period. Once known as undeveloped country, India has transformed itself into the fastest growing economy of the world. It is a proven fact that India is world’s fourth largest economy in purchasing power and UK is the 4th in GDP dollar terms. UK, which remained at second position in India’s leading trade partner till 2002, has become India’s fifth leading partner last year. China, UAE and Belgium are at the rank of second, third and forth. The main products that India exports to UK are leather and leather items, gems and jewellary, footwear, textile, engineering goods, metal manufacturers, readymade garments, chemicals, power generating equipments, software services, pharmaceuticals, chemicals, marine products, and other agricultural products like tea, nuts and preserved fruits, rice, and raw vegetables.
India imports industrial machinery and chemicals, transport equipments, gold, rough diamonds, power generating and telecom equipments and non-ferrous metals from UK. According to UK’s official note, India was UK’s 15th largest export market. Among the countries where bulk of UK’s import comes from India is the 25th largest exporter to the UK.
India –UK trade relations have increased steadily over past five years, baring a slight dip in 2009-2010. The total trade between India and UK stood at US $8.9 billion in the year of 2005-06, in the year of 2006-07 it grew up little bit higher, the figure was $ 9.8 billion, in the year 2007-08 it reached at sky rocketing heights the amount was US $ 11.6 billion and the year 2008-2009 was the golden year, it broke all the years record- $12.5 billion. The year 2009 – 2010 proved a little depressive for both the countries. The latest figure says in the year 2009-2010 the trade value was US $ 10.6 billion. India’s ambition is to achieve up to double its bilateral trade worth UK to $24 billion in the next five years.
Recently a survey was done by FICCI- Thornton. The survey was on the subject-“India –UK Partnering for Growth.’ The survey has suggested a sharp focused strategy to boost India UK trade and investment cooperation in energy, Higher and vocational Education. Biotechnology, Healthcare, Information Technology and Food Processing, among other sector such as manufacturing, automobiles and infrastructure to achieve the target of taking the bilateral trade turnover to US $24 billion by the year 2015.
India is becoming major investor in UK. More than 180 Indian companies have invested in IT sector in UK. Indian companies employ approximately 90,000 people in UK. UK being the world’s sixth largest manufacturer, a hub for science and innovation and gateway to EU will continue to remain an attractive place to do business for Indian companies. Let’s hope for the best!!