 "Investors in London find the India story extremely compelling: UK Minister")
UK Minister for Asia and the Pacific, Alok Sharma, says Britain is open for business, and is thriving on the world stage. In an interview with Sanjay Jog, he says the collaboration between the UK and India will further grow despite recent Brexit referendum.
Post Brexit, what are the prospects of bilateral ties between the UK and India?
UK is very much looking for business.We are the fastest growing economy in G7, we are members of G20, Nato and the Commonwealth. We see our relationship with India as strategic. As representative of the UK government, I hope to establish a long-term engagement with India. UK and India have a broad and exciting partnership. We want the strongest possible relationship with India.
We, of course, had PM Narendra Modi visit us in November last year and there were a number of areas concerning economic deliverables. We are working our way through this.
What are the key areas you are looking at at for further cooperation?
One is in respect of helping raise finance in London for infrastructure projects. So you have seen the successful bond offering by HDFC that has just taken place. I hope we will see, over the coming months, significantly more fund raising of rupee denominated bonds in the London market.
Make in India and Finance in UK is becoming a key phrase. The city of London is the premier financial centre in the world. We have the deepest investor base and as more rupee bonds are listed we develop a deep market. There is no doubt when you talk to investors in London market they find India story is extremely compelling and that's going to be the case for quite some time.
Axis Bank recently launched their green bond in London Market. The bank chose London and it demonstrates the strength of London that is not just for finance but green finance.
The second is, of course, being around smart cities. In November it was agreed UK will focus on Pune, Indore and Amravati to be developed as smart cities. There has been lot of progress in Pune. We have been able to set up a fund, an SPV for the whole smart city project. Besides, lot of work is being done to develop Pune as the centre to house all technical expertise. This hopefully can be used by other smart cities too.
The third area has been intelligent transport system, which is going to be key for developing smart cities.
This apart, health care, education, defence dialogue are some of the other sectors with which we are engaged. This demonstrates that it is not just a one-dimensional relationship, but is based on many many levels, very deep levels. For us in Britain, India continues to be and even more so the strategic partner in future.
So what happens to the Free Trade Agreement between India and the EU?
I cannot comment on the FTA with EU. What I can tell you is we are planning to conclude our agreements with EU and then we'd be looking at bilateral discussions with other nations.
The reality is there is bright future for UK in trading with EU countries and also India.
You have welcomed the Government of India's recent move to liberalise FDI. What do you have to say on the pace of reforms?
I don't think it is for UK government to tell any other government what their policy should be. All I can tell you is the discussions that I had with a couple of ministers demonstrate a huge amount of energy. They want to get on and make changes particularly in the areas of infrastructure. There is huge opportunity for us to build on the work which has already been done.
Vodafone continues to get tax demands. Will it hamper investments by UK companies here?
That's the issue that was raised in bilateral discussions. The matter has been discussed between the two parties. I am here specifically to look at how we can both work together and benefit economically.
India has sought extradition of UB group chairman Vijay Mallya, who left India for the UK on in March. What is the present status?
I don't think its appropriate to talk on individual cases.
Post Brexit, what are the prospects of bilateral ties between the UK and India?
UK is very much looking for business.We are the fastest growing economy in G7, we are members of G20, Nato and the Commonwealth. We see our relationship with India as strategic. As representative of the UK government, I hope to establish a long-term engagement with India. UK and India have a broad and exciting partnership. We want the strongest possible relationship with India.
We, of course, had PM Narendra Modi visit us in November last year and there were a number of areas concerning economic deliverables. We are working our way through this.
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What are the key areas you are looking at at for further cooperation?
One is in respect of helping raise finance in London for infrastructure projects. So you have seen the successful bond offering by HDFC that has just taken place. I hope we will see, over the coming months, significantly more fund raising of rupee denominated bonds in the London market.
Make in India and Finance in UK is becoming a key phrase. The city of London is the premier financial centre in the world. We have the deepest investor base and as more rupee bonds are listed we develop a deep market. There is no doubt when you talk to investors in London market they find India story is extremely compelling and that's going to be the case for quite some time.
Axis Bank recently launched their green bond in London Market. The bank chose London and it demonstrates the strength of London that is not just for finance but green finance.
The second is, of course, being around smart cities. In November it was agreed UK will focus on Pune, Indore and Amravati to be developed as smart cities. There has been lot of progress in Pune. We have been able to set up a fund, an SPV for the whole smart city project. Besides, lot of work is being done to develop Pune as the centre to house all technical expertise. This hopefully can be used by other smart cities too.
The third area has been intelligent transport system, which is going to be key for developing smart cities.
This apart, health care, education, defence dialogue are some of the other sectors with which we are engaged. This demonstrates that it is not just a one-dimensional relationship, but is based on many many levels, very deep levels. For us in Britain, India continues to be and even more so the strategic partner in future.
So what happens to the Free Trade Agreement between India and the EU?
I cannot comment on the FTA with EU. What I can tell you is we are planning to conclude our agreements with EU and then we'd be looking at bilateral discussions with other nations.
The reality is there is bright future for UK in trading with EU countries and also India.
You have welcomed the Government of India's recent move to liberalise FDI. What do you have to say on the pace of reforms?
I don't think it is for UK government to tell any other government what their policy should be. All I can tell you is the discussions that I had with a couple of ministers demonstrate a huge amount of energy. They want to get on and make changes particularly in the areas of infrastructure. There is huge opportunity for us to build on the work which has already been done.
Vodafone continues to get tax demands. Will it hamper investments by UK companies here?
That's the issue that was raised in bilateral discussions. The matter has been discussed between the two parties. I am here specifically to look at how we can both work together and benefit economically.
India has sought extradition of UB group chairman Vijay Mallya, who left India for the UK on in March. What is the present status?
I don't think its appropriate to talk on individual cases.