Wednesday, January 21, 2009

Small India cities 'ripe for UK'

UK Business Secretary Lord Mandelson says British firms should turn their attention to smaller Indian cities to boost their businesses.

Lord Mandelson said companies should look beyond traditional trading heartlands of Delhi, Mumbai (Bombay), Bangalore and Madras (Chennai).

He said cities like Pune offered better opportunities in the current economic climate because costs were lower.

UK exports to India rose last year to about £4.55bn ($6.24bn).

Kashmir dispute

Lord Mandelson said cities like Pune, Ahmedabad, Vadodra, Chandigarh and Goa were fast-growing.

"As the global economy slows down, competition intensifies and costs increase; cities outside these established centres offer some of the best business environments for UK companies to consider," Lord Mandelson said.

Speaking from Pune on his week-long trip, the business secretary said the city was one of those "well placed to make a generational leap forward".

Lord Mandelson's visit has been overshadowed by a disagreement between India and UK Foreign Secretary David Miliband, who visited last week.

The dispute surrounds Mr Miliband's comments linking the Kashmir dispute to November's attacks on the Indian city of Mumbai.

Some Indian media reported Lord Mandelson's meetings had been affected but UK sources insisted his programme had not been changed.

A Foreign Office spokeswoman said Lord Mandelson had had "warm and fruitful" meetings.

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