Potential of ‘neglected’ sectors highlighted in major India report

A major report focusing on the relationship between India and the UK has been produced by the Federation of Indian Chambers of Commerce and Industry (FICCI) and YES BANK.

While the potential of sectors such as IT, telecommunications, healthcare and biotechnology have been highlighted considerably, the report examines the potential of other often ‘neglected’ sectors such as financial services, agribusiness, manufacturing and film industry. Although these sectors have already delivered a great deal of value they are not generally considered to be at the forefront of business between the two countries.

The report highlights the fact that the UK and India have the potential to engage in one of the most profitable and significant bilateral trade and investment partnerships. It claims that as yet only the surface has been scratched and there is a great deal more potential for partnerships and joint initiatives.

Some of the key points made in the report include:

• India is one of the fastest growing economies in the world;
• India has firmly established its identity on the map as a hub for knowledge and innovation;
• Major exports to India include non-metallic minerals, gold, telecom equipment, transport equipment and industrial machinery;
• Major imports from India include textiles, readymade garments, gems and jewellery, footwear, metal manufacturers, organic chemicals and fruit & vegetables;

Between August 1991 and December 2006 the UK was the third largest investor in India (after Mauritius and the USA).

The report highlights a number of reasons to invest in India:

• Movement towards deregulation
• World’s largest democracy
• GDP grew by 8.9% in the first quarter of 2006-07
• Large pool of young skilled labour force
• Cost effective production facilities
• Large domestic market
• Progressive tax reforms
• Opening of the economy to Foreign Direct Investment (FDI)
• Liberalised portfolio investment regime
• Liberal policy on technology collaboration
• Greater emphasis on private sector participation
• Good R & D network

The report examines in detail the opportunities available in several sectors, including: agribusiness, healthcare, film, manufacturing, environmental, clean energy and financial services.

FICCI and YES BANK believe the report will be of benefit to the government, private sector and individuals.

To request a copy of the report contact Ridhika Batra at FICCI at either ridhika.batra@ficci.com or on 020 7917 6810.