British PM makes underwhelming visit to India

It was billed as a clear signal of a very special relationship that Theresa May had chosen India as her first major bilateral visit outside Europe since taking charge as British Prime Minister. However, if she thought that trade and investment talks can be divorced from concerns over the UK's ever tightening visa regime, she was in for a surprise. Prime Minister Theresa May′s visit to India between November 6 and 8 resulted in deals worth around £1.2 billion. The figures themselves reflect the underwhelming nature of her first trade mission as the leader of a post-Brexit Britain. The intention of the visit was quite clear - to pitch the UK as having giant economies like India keen to strike a bilateral trade deal following its impending exit from the European Union (EU). [caption id="attachment_10001" align="alignleft" width="218"]

UK Prime Minister Theresa May speaking at the inaugural[/caption] May wanted to use the visit to deliver on her “ambitious vision” for Britain after Brexit, forging a new global role as a country with the “self-confidence and the freedom” to look beyond the continent of Europe. She said: “Leaving the European Union presents us with a world of opportunities and I'm determined to seize them. That's why I went to India to deliver on global Britain and I have to say that the response I've had here in India has been excellent. This is my first trade mission but we've seen on this visit deals worth a billion pounds being signed. “We have an agreement with the Indian government to work with them on our trade relationship. What that means is more trade for British businesses, more jobs and investment in the UK and that's good for the whole country.” But despite all the right gestures and body language, including wearing a sari during her stopover at the Sri Someshwara Temple in Bengaluru, the visit was anything but smooth sailing. Besides the seismic shifts in world politics in the form of the US elections, the timing of her visit also coincided with the UK's fresh tightening of its visa regime. Under new rules announced just days before she landed, anyone applying after November 24 under the Tier 2 intra-company transfer (ICT) category would be required to meet a higher salary threshold requirement of £30,000. It is a fact that the ICT route is largely used by Indian IT companies in Britain, accounting for nearly 90 per cent of visas issued under this route. This, on the back of previously announced curbs on student visas, meant the message in India was one of scepticism over the UK's intention over bringing down barriers. Prime Minister Narendra Modi did not mince his words during his address at the India-UK Tech Summit, which the two leaders jointly opened in New Delhi. He said: “Education is vital for our students and will define our engagement in a shared future. We must therefore encourage greater mobility and participation of young people in educational and research opportunities.” Indian commerce minister Nirmala Sitharaman was more candid: “The UK seems to want access to the Indian market, the UK seems to want Indian investments, but the UK does not seem to want Indian talent.” [caption id="attachment_10000" align="alignright" width="322"]

Theresa May with Indian President Pranab Mukherjee[/caption] If a Donald Trump victory had not managed to push the visit to smaller headlines, the Indian government's announcement over the demonetisation of its banknotes certainly ensured a complete wipe-out. Back home in the UK, the media was hardly kinder and also focussed on India's demands of ease of access in return for closer trade and investment cooperation. The India-UK relationship may be described as “special” but this visit makes it clear that an India decisively marching ahead on the international stage will not be content with mere symbolism and hyperbole. In PM Modi's words: “India is now the fastest growing large economy with the most open investment climate. Our innovative entrepreneurs, talented work force and R&D capabilities combined with large markets, demographic dividend and increasing economic competitiveness offer new growth sources for the world economy.” Therefore, its relationship with the UK needs to reflect this position of strength, especially against the backdrop of Brexit and a number of other European regions making a play for its lucrative market. A list of commercial deals signed between India and the UK during the visit:

• UK's Dynamatic signed a deal worth £205 million. Dynamatic and Airbus announced the commercial production of flap track beams, which are high-tech guide rails fitted to the wings of the aircraft, crucial in controlling speed, direction and balance. The parts are machined in Dynamatic's facilities in Swindon and Bristol and then manufactured and assembled in Bengaluru.
• Dyson is to open flagship stores in major cities across India, including Delhi and Mumbai, as well as partner with leading retailers to make its technology available to Indian consumers. Dyson expects to set up in India in 2017 and generate around £150 million revenue over the next five years.
• Buffalo Grid uses solar energy to provide mobile power and internet services to off-grid communities. The company expects to export 500 solar-powered, internet-connected hubs to provide mobile power and internet to rural villages in India - connecting over 250,000 people living in some of India's poorest villages. These hubs will be manufactured in the UK and will generate up to £24 million in revenue over five years.
• King's College Hospital, Ernst and Young UK and Pricewaterhouse Coopers along with other leading UK health providers have signed a range of commercial and financial partnerships with the Indo-UK Institute of Health (IUIH) worth £300 million.
• Westminster Healthcare are investing £14-£15 million in a pioneering diagnostic centre in India, which will open in January 2017. The UK export value of goods and services will be approximately £10 million with a turnover of around £75 million over a five-year period.
• Gurr Jones will provide services such as the valuation and appraisal of fine and decorative art, antiques and collectables to art enthusiasts and collectors across India. The deal is expected to generate a turnover of £50 million in the next three to five years.
• He-Man Dual Controls are setting up a manufacturing plant in Chennai, with a total investment and export value of £800,000 over the next 5 years.
• Equiniti India, an intelligent provider of sophisticated technology, administration, processing and payments services, has invested an additional £3.1 million as part of their expansion plans for India.
• Wockhardt, a leading Indian pharmaceutical and biotechnology company, has a Sterile Manufacturing Facility based in Wrexham, North Wales, which employs approximately 380 personnel. The site currently has capacity to manufacture and pack 25 million ampoules, vials and cartridges. It is now investing a further £10 million to enhance its existing manufacturing capabilities in Wrexham. This investment will result in an additional capacity of 50 million ampoules and vials and will also generate 40 to 50 new jobs.
• Pandrol Rahee Technologies Pvt Ltd is investing around £1.5 million to build a state of the art manufacturing unit in Hyderabad. The plant will manufacture specialised railway clips and is expected to generate £45 to 50 million in turnover over the next five years.
• London-based Kloudpad exports the very best of British designed technology and is investing £50 million into a new manufacturing plant in India. This will see profits soar by £300 million - bringing 50 new jobs into London.
• Firstsource Solutions, which has seven centres across England, Scotland, Wales and Northern Ireland, is adding 1,000 staff over the next six months. The Business Process Management company already employs 4,000 people in the UK. The firm also recently opened a centre in Warrington, employing 250 people.
• Wipro announced the expansion of its Wipro Digital business with the opening of its second office, a 150-seater facility in London. Wipro Digital had unveiled a 75-seater digital pod in London last year. These two pods will together give Wipro Digital increased specialised capability in digital strategy, design and engineering. It will offer UK and global brands integrated and end-to-end digital transformation services.

1. UK-India Year of Culture 2017-18