British investment in India too little
Tuesday, 5 June 2007
LONDON, June 4 (PTI): In spite of the booming Indian economy, British investment in the country is far below its potential, Minister of State for Industry Ashwani Kumar has said.
"Investment by UK companies in the fast-growing Indian economy is far below its potential despite doubling between 2005 and 2006," Kumar who was here on a brief visit told reporters. Figures for foreign direct investment in India between 1991 and March 2007 show that Britain accounted for 8.7 per cent of the total, compared with 12.8 per cent from the US and six per cent from the Netherlands.
According to official figures, British companies invested about 266 million dollars in India between April 2005 and March 2006.
This is likely to rise significantly this year thanks to Vodafone's purchase of Hutchison Essar, India's fourth largest mobile operator, Kumar said adding with the historic ties more "economic engagement" was needed between the two countries.
"We still believe there is a lot that can be done," he said.
Last year was the first time Indian foreign direct investment in the UK exceeded British investment in India.
Total foreign investment in India last year was 15.7 billion dollars. This is expected to grow to 60 billion dollars, the current levels of investment in China, within seven years.
The Indian government will spend 150 billion dollars in infrastructure over the next 10 years to encourage further investment.
"Investment by UK companies in the fast-growing Indian economy is far below its potential despite doubling between 2005 and 2006," Kumar who was here on a brief visit told reporters. Figures for foreign direct investment in India between 1991 and March 2007 show that Britain accounted for 8.7 per cent of the total, compared with 12.8 per cent from the US and six per cent from the Netherlands.
According to official figures, British companies invested about 266 million dollars in India between April 2005 and March 2006.
This is likely to rise significantly this year thanks to Vodafone's purchase of Hutchison Essar, India's fourth largest mobile operator, Kumar said adding with the historic ties more "economic engagement" was needed between the two countries.
"We still believe there is a lot that can be done," he said.
Last year was the first time Indian foreign direct investment in the UK exceeded British investment in India.
Total foreign investment in India last year was 15.7 billion dollars. This is expected to grow to 60 billion dollars, the current levels of investment in China, within seven years.
The Indian government will spend 150 billion dollars in infrastructure over the next 10 years to encourage further investment.