The Hindu Business Line : `India will benefit if full access in services is allowed to UK cos'

ACCEPTING that outsourcing (to Indian companies) was an inevitable and economically beneficial consequence of globalisation, the newly appointed British High Commissioner to India, Sir Michael Arthur, on Wednesday said that Indian companies too, would benefit if full access is allowed in India to services, an area where Britain was globally competitive.

Addressing a luncheon meeting organised by the Confederation of Indian Industry (CII) here, Sir Michael pointed to the fact that India is providing world competitive services not just in call centres but also in business process outsourcing (BPO) work and other IT-based services.

"British companies are investing in those services in a big way. This is a sensitive issue in the UK. But the British Government is taking steps to boost competitiveness of the UK and enable the UK workforce to be engaged higher up in the value chain," the High Commissioner said.

Turning his attention to Indo-UK relations, Sir Michael said that the economic relations between the two countries were changing.

"Britain has always been one of the biggest inward investors in India. But last year, India was eighth in our league table of inward investment into the UK."

"Research and development is now a two-way street. Three quarters of Indian investment into the UK is knowledge-based," Sir Michael said.

The High Commissioner also welcomed the recent lifting of outward investment limits.

Further, Sir Michael said that while the two countries do not have identical interests in what the final Doha round consultations should ideally be, they did have a shared interest in ensuring that there is such a conclusion and that the global trading regime moves forward and liberalises.

"Britain too, would like to see more Indian access to the European markets for its agricultural produce. Britain and India have a shared interest in avoiding protectionism," the envoy said.

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