India, UK to set up joint trade group

India and Britain today decided to set up a ministerially-led joint economic and trade committee to further develop a strategic economic relationship and business-led vehicles to enhance bilateral trade and investment in specific sectors, including services and knowledge-based industries.

They also decided to establish an Indo-British economic and financial dialogue on bilateral and global issues, on financial systems, and to enhance economic and financial cooperation.

The decisions were taken during the wide-ranging talks Prime Minister Manmohan Singh had with his British counterpart Tony Blair at a luncheon meeting here covering all international and bilateral issues of mutual interest.

"We will enhance our dialogue on international trade and investment issues," said a joint declaration issued at the end of the parleys at the British Prime Minister's official residence, 10 Downing Street.

It said, "our economic ties will continue to expand. We will establish a ministerially-led joint economic and trade committee to further develop a strategic economic relationship, and develop business-led vehicles to enhance bilateral trade and investment in specific sectors including services and knowledge-based industries.

At this important time in the development of the international trade regime, we will work closely together for a successful conclusion to the World Trade Organisation's (WTO's) Doha round of multilateral trade negotiations," the two Prime Ministers said.

The joint declaration said, "The UK and India agree to expand cooperation in the fields of civilian nuclear activities, civilian space programmes, and high technology trade, in accordance with their international obligations."

Describing India and the UK as natural economic partners, it said, "As India emerges as a global power, trade and investment relations are becoming more diverse. Bilateral trade grew by over 20 per cent last year. We want this rapid growth to continue. But the real partnership lies in the strength of investment in both directions."

The UK is the second largest investor into India. India was the eighth largest investor in the UK in 2003. It is one of the fastest growing, investing in UK's knowledge economy.

The UK provides an important bridge into the European market, attracting over 60 per cent of India's investment in Europe, the joint declaration said.

Stating that shared democratic values and a commitment to human rights, justice and the rule of law underpin relationship between the two countries, the joint declaration said "we share a global vision of peace, security and shared prosperity, based on sustainable development.

"We have shared interests in combating key global challenges - terrorism, poverty, hiv/aids, environmental degradation, climate change, drugs, international crime, illegal migration and trafficking in people. We will step up our bilateral cooperation on these issues."