Continuing Rmagine’s spotlight on news coverage across the EU on the Indian economy and opportunities, here is another from the UK’s Telegraph…Liam Halligan, the chief economist at Prosperity Capital Management writes: “…..Indian commerce is these days about so much more than “cheap labour” call-centres and Bollywood movies. India is transforming itself into a manufacturing and hi-tech superpower, fast scaling the value chain, doing what the West does but doing it cheaper. Far from being dependent on us, India’s economic prowess means it has become the source of billions of pounds of inward investment into the UK. Rather than “stealing” British jobs, Indian businesses are now more likely to provide them.”
The British Prime Minister….Liam says, ” led a travelling circus of a delegation to the sub-Continent – six ministers and 30 senior business executives. Aside from the political theatre, he wanted to show the UK is now serious about capitalizing on its deep cultural and historical ties to India, boosting commercial links with the second most populous country on earth.”.
Citing two other speeches, apart from Cameron’s, Liam presents, what he calls as the obvious shift in the balance of economic power from the developed nations to the emerging ones. World over, developed nations like the UK which has a fairly robust equity with countries like India, are making the moves to partner with India. Today, the EU accounts for over 50% of UK’s international trade while India accounts for just 2%. Cameron’s visit is all about changing that equation and there is a hurried pace to making that change happen. Canada, with over 85% of its trade directed to the US and zero-point-something% to India is not very different. While UK may have the advantage of historical ties with India, Canada has the advantage of a huge multi-cultural base of South Asians who could be vital catalysts to closing the trade divide between Canada and India.
To read Liam’s full article: http://www.telegraph.co.uk/finance/comment/7920142/Cameron-swallows-the-bitter-pill-as-the-East-casts-shadow-over-Europe.html