The Hindu Business Line : `India investing more in the UK'

THE BRITISH High Commissioner, Sir Michael Arthur (right), addressing the press in Bangalore on Friday. Mr Julian Stretch, Senior Advisor on Trade and Investment for the UK Government,is also seen. — Sampath Kumar G.P.

Bangalore , Oct. 27

India and the United Kingdom are in the race to occupy the coveted honour of being the top investor in each other's country, as the two nations are currently locked at the third spot.

Expectations are that India's new found appetite for overseas investments through FDI and inorganic routes such as Tata Steel's buying into Corus Group Plc would give it impetus to be the top investor in the UK.

Addressing a press conference here on Thursday, the British High Commissioner to India, Sir Michael Arthur, said, "If the current trend continues, India will soon be the largest investor in the UK.

"Truly, a win-win partnership. We were keen to encourage more Indian investment into the UK and demonstrate how success follows success."

Constraints

Sir Arthur, who is here to participate in the BangaloreIT.in, said the UK is repositioning itself as a knowledge economy and is also keen to encourage more investments in its manufacturing sector.

Though, the UK is eager to increase its FDI into India, Sir Michael said the restrictions in the financial sector, a strong domain of Britain, acted as a constraint.

He said the retail sector would be another area of interest for British investors, when opened up liberally.

"We are enthusiastic about the Indian economy and we would like to be here more than we are (at present)," he said.

Sir Arthur said Indian investment in Britain in 2005 was more than £1 billion, which is "quite a lot more than British investment into India".

The reason for comparatively lower British investment is the "limitations" on FDI.

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