UK trade seeks faster freeing of fin services

British accountancy services firms today said the barriers foreign firms face in operating in India were adding to their capital costs, besides stopping them from recruiting more Indian students.

Industry representatives, who are here as part of a 150-strong British delegation to lobby with New Delhi to open up the financial sector, said protection to the domestic services sector needs to go if India wants the best of globalisation.

Leading audit, tax, financial and business advisory services firm KPMG, which operates in India as KPMG India, said its global clients with operations in the country were resisting the idea of KPMG India signing off deals.

"They (corporate clients) want just one firm (KPMG) to handle the operations," David L Gardner, head of public policy, KPMG said here today.

"If the restrictions are lifted, we could recruit three times more Indian students than we do at present," he said, adding that Indians would benefit by way of international training in a booming financial services market.

The delegation, which comprises representatives of legal services firms, would also mount pressure on India to open up this sector too for foreign investments.

"It is a Catch-22 situation. On one hand India wants $320 billion for its infrastructure sector and on the other there is no FDI in legal services, there is limit on FDI in insurance... Holding up services sector is actually holding up infrastructure," Karan Bilimoria, co-chairman, Indo-British Partnership Network, said.