India invites UK investment in infrastructure

New Delhi, India, January 21, 2008 - India is seeking investments from UK in the areas like highway projects, bridges, expressways, ports, power generation, water plants, water management techniques. This was conveyed by Shri Kamal Nath, Union Minister of Commerce and Industry, during the India-UK CEOs Round Table, here today, and added that so far investments from UK was mainly from the sectors such as telecom, chemicals, fuels, service sector etc. The Round Table was attended by Lord Digby Jones, UK Minister of State for Trade and Investment and Dr. Ashwani Kumar, Minister of State for Industry, besides senior officials from both the countries.

Drawing the attention of CEOs, Shri Kamal Nath said: “We consider UK as one of the most important source of FDI for India not only amongst the EU countries but also vis-à-vis other countries in the world. With a share of 37% in EU’s total outflow of FDI in non-EU countries, I think UK is a very natural and important partner for a country like India that requires massive investment for its infrastructural needs”.

India is now the 3rd largest foreign investor in the UK in terms of projects, second only to the US and Japan. In the first half of 2006, according to Ernst & Young's European Investment Monitor 2006 Report, Indian investment into the UK overtook Japan, making India the 2nd largest investor in the UK. UK is the 3rd largest investor in India with a cumulative inflow of US $ 4.06 billion, (6.48%) since 1991. FDI inflows from UK in 2005, 2006 and 2007 (up to October) have been US $ 219.3 million, US $ 1749.8 million and US $ 398.5 million, respectively.

On the trade front, UK is the 4th largest trading partner of India with bilateral trade of US $ 9.8 billion in 2006-07, which is about 3% of India’s total trade. Percentages of bilateral trade compared to total trading basket of UK (US $ 1 trillion in 2006) are negligible. This again indicates an immense potential existing between the two countries.