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UK hopes nuclear, education deals will be inked during PM's India trip

"The PM is taking some of the key ministers in the government. This is the first really big concentrated visit of this coalition government abroad," UK's secretary of state for business, Vince Cable said.

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Britain and India are expected to reach agreements on some "very big projects", including nuclear power and higher education, during the visit of prime minister David Cameron to New Delhi this month end.

"The prime minister is taking (to India) some of the key ministers in the government. This is the first really big concentrated visit of this coalition government abroad," UK's secretary of state for business, Vince Cable, told reporters.

There are some "very big projects" that Britain is hoping to bring to conclusions, he said, without mentioning exact dates for Cameron's India visit.

"Among them is the nuclear power projects which we have been discussing with them (India). One of the big areas where India has a large demand and we have potential suppliers is education; higher education. British Universities are
potentially very big collaborators in the field as well," Cable said.

Answering a question on the apprehension of Indian companies about visa restrictions, he indicated that the new coalition Government would try to accommodate the requirement of Indian companies.

"We are very conscious of the visa issue. Indian companies and the Indian government representatives have made it clear that they do need to bring people in. That is absolutely clear. We do fully understand that. Inter-company transfers is part of international business; we are open to business and that includes top level managers and other staff. There is no problem on that count."

Referring to the politics involved in it, the business secretary said "the new government is expected to demonstrate that immigration was under control; so set an overall target for people coming from overseas on work permits."

"But we do not want to discourage people coming into the country who have badly needed skills and the policy will be to make sure that it does not happen."

To a question on slight decline in the bilateral trade last year, Cable said "that is a temporary hick-up." 

"If you had asked me ten years ago about Indian investment in the UK - whether it was significant - people would have thought you are slightly odd and it was inconceivable. The fact is that we know now we have major Indian investors coming here, which is a major breakthrough. One year's variation is not one thing or the other. High-profile companies like Tatas own substantial chunk of the British car and steel industry."

"We have so many pharmaceutical companies like Ranbaxy and top level IT coming from India, besides Bollywood companies producing films. For me it is a big historical shift from India being a country of receiver of investment, not open to business. Now it is much more open and has become exporter of capital and foreign investment. It is a major transformation and very welcome here," he said.

Cable said the visit of prime minister Cameron to India is "a major one" and "not one of the occasional visits you get."

To a question on British government's decision to review company take-overs, he said: "Takeover panel which is looking
at takeovers is an independent body.

"We are looking critically at the takeover rules. In the past it was very permissive and led to a lot of takeovers at reduced value, not increased value. This has nothing to do with foreign investment. Whether the company they are taking over is British or foreign is not the issue. If the rule changes, it will affect all companies."

Earlier, Cameron said his government has put the UK's ability to attract and retain inward investment at the heart of its economic recovery plans.

Addressing the UK Trade and Investment Business Summit of over 100 of the UK's leading investors, including Hutchison
Whampoa, Motorola, Tata Group, Toyota, Siemens, Emirates,
Fujitsu and Pfizer, Cameron said "attracting and retaining
inward investment is hugely important for our economic
recovery.

"We want Britain to be a place where companies can grow and succeed, where the world's biggest companies thrive, where
great ideas and innovations are turned into great products and
where we have a world-class workforce."

"We are determined to deliver the pro-business environment investors need; getting the deficit down to create certainty and stability, cutting business taxes, delivering flexible employment and cutting red tape and regulation," he said.

The prime minister said: "Whether your company is established here, expanding here or relocating here, Britain is back open for business and it's going to be better than before - and better than the competition."

The UK Trade and Investment today released Britain's national investment figures which showed that a record numbers of countries invested in the UK in 2009-10. Inward investment
generated 94,000 jobs over the past year, a 20% rise on the previous year.

India is the UK's fourth largest investor, with inward investment generating 5,889 jobs over the past year. 

Addressing the gathering, business secretary Cable said: "Inward investment is crucial to the success of the UK's economy. It creates thousands of jobs for the country and is key to the economic growth of our regions."

"I know how attractive the UK is for doing business. That's why I'm so pleased that today I can meet with such vital international companies to encourage them to keep bringing business to Britain."

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