Trade link with India is important for Britain: Greg Clark

Interview with British Business, Energy and Industrial Strategy Secretary

British Business, Energy and Industrial Strategy Secretary Greg Clark in an interaction with Subhayan Chakraborty tells that tax  rows with Vodafone and Cairn need to be resolved, but strength of relationship between the two countries is not affected by these disputes. Edited excerpts:

Your predecessor Sajid Javid also came to New Delhi last month, just after the referendum on Brexit. What brings you to India within such  a short time?

We always have been keen to strengthen and deepen our trading, cultural and personal relationships with India. Now we have an important opportunity after Brexit. The UK has decided to renew and strengthen its relationships around the world. The decision that was made in the referendum was to be more global from our perspective and India was a natural place to be.

India and Britain are looking to establish a Free Trade Agreement in merchandise goods. What might be an estimated deadline for its completion?

It's still early days in the new government but one of the things I wanted to discuss with my colleagues and the businesses here is how to move forward on a stronger bilateral pact. We are obviously still members of the European Union and we are anticipating the arrangements after the formal exit. But I think it's right to have those discussions now.  

How long is a formal exit from the European Union expected to take for Britain?

That remains to bedetermined. Once the formal process is triggered, then it can take a maximum of two years. It is the UK’s discretion as when to trigger the formal process.

In the meantime, do you feel the existing bilateral trade will be adversely affected by Brexit?

It certainly can't be adversely affected. We have the same trading relationship with Europe. We are still full members of the European Union and that's unchanged. But the opportunity for us to improve our trading links with countries like India is important. And it's also important to think of the further opportunities post-Brexit when we will be able to have bilateral links. And it's important to have those conversations now.

With major UK companies like Vodafone and Cairn fighting huge tax battles with the Indian government, do you feel British investors and companies have been put off?

My focus is on energy, for this visit. But it's obviously important that Britain should have a dialogue and there should be confidence on both sides for any investment. But I know there is huge interest among British investors. So, while such matters need to be resolved, the strength of our current relationship is unaffected.

What about Indian investments into Britain?

They are still going very well. India's investments in Britain is more than the rest of the EU combined and I think it is a good time for Indian investments into Britain, because our relationship can only grow. Fundamental factors that have made us attractive partners are that we are a stable economy, we have very high levels of employment and have some of the best Universities and Research institutions.

What about a thorny investment such as Tata Steel in Britain and especially the Port Talbot plant?

The company has currently suspended its decisions to sell the business owing to move on Brexit.

What next?

Tata is a very respected and valued investor as well as participant in the UK economy. It's one of our most admired companies and they have always had a very good track record of thinking for the long term and treating their work force very well. But some issues, as you know are undergoing a lot of turbulence. I have had discussions with my predecessor Sajid Javid regarding the company as to how to make sure the British government can be supportive and a solution can be found to the current crisis.

So, is Tata's exit from the Britain impending?

Well discussions are undergoing as to how we can make sure the company has a good future in Britain.

What were the major points of discussion in your interaction with Petroleum minister Dharmendra Pradhan?

We discussed how both countries can cooperateon areas of investment, technology and research and development. We want tomake sure right at the beginning that India is one of our largest allies and we look forward to working together in the sector.

Are British companies also looking at the oil exploration segment in India?

Yes, the feeling is mutual on both sides. We can have a mutually beneficial trading relationship.