Strengthening International Trade and Development Ties with India

Strengthening International Trade and Development Ties with India

The coalition government has committed itself to strengthening international trade and development ties with India, following prime minister Narendra Modi‘s landslide victory in May 2014. Modi heads up the first majority government in Indian politics for 30 years. In July 2014, the chancellor, George Osborne, and foreign secretary, William Hague, became the first British politicians to meet with Modi, the leader of the Hindu nationalist party, since his election to the role of prime minister. Osborne hit a positive note as he praised the Indian prime minister’s commitment to leading change within the country. During their visit to India, Osborne and Hague struck a number of global trade and development deals, which will be worth millions of pounds to the British economy.

The UK’s Relationship with India

Between 2010 and 2013, the coalition government had undertaken two major trade delegations to India, emphasising the importance of international trade and development between the two countries.

In 2012, the coalition government re-established contact with the leader of the Hindu nationalist party. Relations with Modi had previously been terminated in 2002 when he was the mayor of Gujarat. At that time, he had been accused of permitting riots to take place in which 1,000 were killed. Modi has always denied that he was involved in any wrongdoing and a supreme court investigation was unable to uncover sufficient evidence to support the charges against him. The coalition is now able to build on that relationship following Modi’s election.

Reinforcing the Global Trade and Development Relationship with India

The coalition government is hopeful that British companies will benefit from increased international trade and development resulting from Modi’s commitment to increased construction projects throughout India. The new prime minister has promised to build up to 100 new roads, railways, ports and cities across the country. Osborne and Hague are also hopeful that the delegation will increase the UK’s military exports, enabling British companies to provide technical expertise and support to India’s defence and aerospace companies.

How to Grow Global Trade and Development with India

With a population of over 1.2 billion people, India is one of the largest countries in the BRIC economic group. There are over 300 million Indians who would be considered to be middle class and who are driving the demand for high quality consumer goods. India is the second-fastest growing economy in the world, with only China predicted to outstrip it for growth in the coming years. Strong international trade and development links already exist between the UK and India, given the shared history between the two countries in previous decades. However, establishing new trade opportunities in the country can be facilitated when you use the services of a specialist company with an established Indian presence.

The innovative and experienced consultants at Kinetic Cubed can help businesses looking to take advantage of the increased opportunities for global trade and development offered by the changes that will be taking place within India. With a permanent presence within the Maharastra region, we have the local contacts and knowledge required to assist you to establish your business venture.

Tony Aggarwal is a Director and Co-Founder of Kinetic Cubed. Tony is speaking at the IEDC conference in Fort Worth, Texas in October.

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