Speech by: Lord Mandelson
Event: The UK-India Business Council, London
Your Excellency President Patil, your Royal Highness and distinguished guests, it’s an honour to be here with you today.
I must also thank the UK-India Business Council, for organising this event and their continued work with UKTI to build ties between our two countries.
When I arrived in Brussels as Trade Commisioner, I was struck by a sense that Europe didn’t quite get the pace of Indian change and the implications for the global economy.
And I still think one of my biggest achievements as Trade Commissioner was launching an EU-India FTA as one of the EU’s key trade policy priorities in 2007. I was an early advocate in the European Commission of upgrading our strategic partnership with India. I hope it doesn’t sound too self-satisfied to say that I think I got the point about India early on and I’ve been making that point in Europe ever since.
If anything that pace of change is going to accelerate. New technologies, changing demographics and the world’s shift to low carbon are set to transform global markets in the future. As India’s manufacturing sector expands, its global footprint will get bigger and bigger. How we chart a route to sustainable growth in this changing world is the big challenge for both India and Britain.
And for all our obvious differences, I think there are some important similarities in how our two countries achieve that growth, how we rebuild global demand – a shared outlook which makes our relationship a valuable strength to develop, in the years ahead.
Rebuilding Global Demand
Our Governments have invested a huge amount in public stimulus packages over the last year or so, because the key for recovery is rebuilding private demand. That’s why the WTO Doha Round still matters more than ever – it is in effect another very major stimulus package for our economies.
The G20 Trade Ministerial in New Delhi last month took us a significant step forward – and I welcome the Indian Commerce Minister, Anand Sharma’s focus, he’s right to do that. We need to deliver on the commitments made there, and reinforced in Pittsburgh by the G20, to complete a deal by 2010.
Closer to home, an ambitious EU-India Free Trade Agreement would have similar benefits. So I hope the EU-India Summit next month helps us make progress there too.
Driving Enterprise and Innovation
India’s recent election result gave its Government a mandate for ambitious economic reform. This is indispensible to India’s future growth and prosperity.
In the UK, we believe that greater market access in India, in sectors such as financial and legal services, defence and retail could bring benefits to both our countries.
And we’re working with the Indian Government through the Joint Economic Trade Committee, and with UK and Indian business to help drive progress in these areas.
Generating High-value Growth
Of course, many British companies are already well-known and respected in Indian markets – and I want to stress the depth and breadth of our expertise.
Over the last 30 years, Britain has transformed its own manufacturing base. Building on our strengths in design, innovation and technologies, to secure a global lead in value-added, R&D intensive manufacturing sectors such as aerospace, industrial bio-tech and composite materials.
And we can help India as it seeks to refocus its own manufacturing base further up the global supply chain.
In particular, we’re committed to establishing the UK, as a leading partner in the development and delivery of low carbon solutions.
Building for Tomorrow
It is about building for tomorrow. For example, on his visit to the UK last month, Minister Nath talked of India’s plans to build hundreds of thousands of kilometres of new railway lines, highways and rural roads, as well as modernise around 39 of its airports.
That’s a huge undertaking. And leading UK businesses have extensive experience in managing these types of big infrastructure projects.
Opportunities for Growth
It’s also important, that any UK company looking to succeed in India recognises the opportunities across India, including in its Tier 2 cities. And both the UKIBC and UKTI are helping potential UK investors learn more about these opportunities.
In turn, Britain’s own cities and regions can provide India’s global entrepreneurs with one of the best environments in the world in which to grow their business.
Conclusion
Let me say this in conclusion. With bilateral trade between us still growing – reaching £12.6 billion in 2008 – despite the difficult global trading conditions, the UK-India relationship is one of the biggest strengths we have to meet our countries’ ambitions for the future.
Now is the time, for us to build on that advantage that we have, by working together. Doing what we can to stimulate global demand and develop together those partnerships and capabilities, that will help drive prosperity and opportunity for our people in the decades to come.
