Noteworthy statements during the visit include the following:

• “India-UK relationship is a strategic partnership of equals” (Brown);

• “Strong fundamentals of India are a source of strength for world economy” (Singh);

• “Fluctuations of markets are due to market forces” (Singh);

• Expressing confidence that markets will grow: “Sustained market growth is our high priority” (Singh);

• “Britain supports India’s candidature for the United Nations Security Council” (Brown);

• “Orderly growth of our capital market is a priority concern for government” (Singh)”

• Gordon Brown suggested Sachin Tendulkar has a strong a case for knighthood.

Mr. Brown’s India visit came on the tail of his visit to China earlier in the week. The Prime Minister flew back to London on Monday (21 January) night.

India Seeks Investment from UK in Infrastructure Sector

India is seeking investments from the UK in the areas such as highway projects, bridges, expressways, ports, power generation, water plants and water management techniques. This was conveyed by Kamal Nath, Union Minister of Commerce and Industry, during the India-UK CEOs Round Table, on 21 January, and added that so far investments from UK was mainly from the sectors such as telecom, chemicals, fuels, service sector etc. The Round Table was also attended by Lord Digby Jones, UK Minister of State for Trade and Investment and Dr. Ashwani Kumar, Minister of State for Industry, besides senior officials from both the countries.

Drawing the attention of CEOs, Nath said “We consider UK as one of the most important source of FDI for India not only amongst the EU countries but also vis-à-vis other countries in the world. With a share of 37 percent in the EU’s total outflow of FDI in non-EU countries, I think the UK is a very natural and important partner for a country like India that requires massive investment for its infrastructural needs.”

India is now the 3rd largest foreign investor in the UK in terms of projects, second only to the US and Japan. In the first half of 2006, according to Ernst & Young’s European Investment Monitor 2006 Report, Indian investment into the UK overtook Japan, making India the 2nd largest investor in the UK. The UK is the 3rd largest investor in India with a cumulative inflow of US$4.06 billion (6.48%) since 1991. FDI inflows from the UK in 2005, 2006 and 2007 (up to October) amounted to US$219.3 million, US$1749.8 million and US$398.5 million respectively.

On the trade front, the UK is the 4th largest trading partner of India with bilateral trade of US$9.8 billion in 2006-07, which is about 3 percent of India’s total trade. Percentages of bilateral trade compared to total trading basket of the UK (US$1 trillion in 2006) are negligible. This again indicates an immense potential existing between the two countries.