Britaini, May 6, 2004
(IANS)

Seeking to project London as the gateway to an expanded European Union - is stepping up efforts to attract foreign investment from India, the eighth largest investor in that country.

"Over 440 Indian firms have a base in Britain and they see us as a natural entry point to an even larger European Union market of over 450 million people. That's a good sign for 21st century partnership," British High Commissioner Michael Arthur told IANS.

"We now rival the United States as a premier destination for Indian investment overseas, particularly in the information technology sector, and we want to facilitate further inflow of Indian investment to Britain," he said.

"The United Kingdom is host to some 21,000 foreign companies. Around 500 foreign banks have operations in London. We have a sound legal system. And in food, too, we have adopted diverse cuisines."

As a result, foreign investment, which was a "one-way street" five years ago, has transformed into both British and Indian companies investing in each other's countries, he added.

"If you count Mauritius out, for whatever reason, we are the second largest investor in India. Likewise, India is the eighth largest investor in Britain," he said.

Arthur, who along with his wife Plaxy hosted a reception at his residence Wednesday evening for some 50 existing and prospective Indian investors, said another area where he sees much potential for Indo-British partnership is in research and development.

"Last year, Astrozenica opened a major new research facility in Bangalore to develop a new TB drug. In the same year, Dabur bought up a research company in Britain to take forward Dabur's work on a new cancer drug," he said.

"We can do a lot more of this since three-quarters of the Indian investment into United Kingdom is knowledge-based."

The high commissioner, who previously served as director general of economic affairs at the Foreign Office in London, said there was also a marked increase in bilateral trade since the Indo-British Partnership initiative in 1993.

Bilateral trade in goods and services was worth $7 billion in 2002 and is estimated to have grown by around 25 percent in 2003 to $9 billion, he said. "Over 2,000 new Indo-British joint ventures have been approved since 1993."

Other officials at the High Commission pointed out some interesting facts and figures in Indo-British relations:

* Eighteen Indian companies are listed on the London Stock Exchange, which is more than the combined total of 11 companies listed on New York Stock Exchange and the Nasdaq combined.

* Britain is India's third largest trading partner and accounted for 4.6 percent of India's total foreign trade in goods in 2002-03.

* India is Britain's 15th largest export market, ahead of China, and UK's largest export market in the developing world.

* United Kingdom is home to over 1.3 million Britons of Indian descent.

* British missions issue 250,000 visas a year to Indian citizens travelling to UK.

* British universities offer 600 scholarships to Indians each year.

* Over 12,000 Indians study in Britain and the numbers are increasing each year.