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Economic Development Anglo-Indian relations to soar further Registration
Economic Development Anglo-Indian relations to soar further Registration | Anglo-Indian relations to soar further |
| Written by Lautaro Vargas | |
| Wednesday, 05 March 2008 | |
 Signal of intent: Lord Karan Bilimoria, UKIBC chair, British PM Gordon Brown and Sharon Bamford, UKIBC CEO at the launch of the UK India Angel Investors Network in New Delhi The newly constructed UK India Business Council (UKIBC) says it has everything in place, including funding, to establish a base in the area and is just waiting for the region to commit to the new venture. Though it is in discussions with several of the UK’s 12 economic regions, the Council is eager to work with the East of England, in large part due to the increasingly strong bonds being tied between Cambridge and India. “We have plans to establish ourselves in Cambridge,” said UKIBC chief executive, Sharon Bamford. “We are talking with other regions, but we feel Cambridge has an incredible amount of potential. It has the capability and diversity in companies that India would be interested in. “If Cambridge wants to do it, our finances and objectives are in place. We are ready to push the button.” UKIBC has been established to shed the UK and India of the last barriers to trade that exist between the two and to build powerful, longstanding links. It has the backing of Gordon Brown and an unrivalled advisory board including industrial giants such as Sir Richard Branson and Martin Sorrell at WPP and Dr Shai Vyakarnam, director of the Centre for Entrepreneurial learning at the University of Cambridge Judge Business School. Though the UK is currently the third largest foreign direct investor in India in terms of value of investment and is also its fourth largest trading partner, Bamford says major barriers to trade continue. Perhaps more worrying is Bamford’s assertion that the latest generation of Indian entrepreneur is looking away from the UK to the US, which could have serious long-term implications for the UK in terms of the world economy. UKIBC intends to confront these issues with an approach worthy of its advisers. It is a serious, results driven venture and as such, will only install itself in a region if both the region and India can offer something tangible to each other and if the objectives of UKIBC are directly aligned to that of the regions’ economic development partners. While Bamford, believes it is important to work long term, there’s no messing about when it comes to what it should mean to Cambridge in real terms; “Business.” Though UKIBC intends to help dismantle many of the bureaucratic, regulatory and cultural barriers it believes exist between the two countries, the criteria by which it will ultimately stand or fall is the number of deals done. “It’s purely about deal flow and getting deals done,” said Bamford. “There would be performance targets set with the partners, which could be how many companies are trading, what’s the impact on turnover, are deals being done.” Bamford’s belief in the long term is solid. She points to a recent Goldman Sachs report which has projected that by 2042, India’s economy will outstrip that of the US and all others except for Russia and China. “If we have a short-term perspective, it will not help, so we have to work long and build.” This provides UKIBC with the opportunity to build a solid resource, knowledge and infrastructure support network for UK companies to make the most of emerging opportunities in India and for Indian companies to invest in the UK. UKIBC is chaired by Cambridge alumnus, Lord Karan Bilimoria and operates under the Indo British Partnership, created in 1993 by the then British and Indian prime ministers. It has been launched following a relatively modest increase in government spending, up from £75,000 to £1 million, though this is enough to make a major difference according to Bilimoria. “Buoyed by a step-change in government support from UK Trade and Investment (UKTI), we are now entering a glorious new phase in Indo-British relations.” Before this glorious phase comes to Cambridge, Bamford says UKIBC will need the full and express cooperation of the regional partners. It is this commitment from the East of England that she awaits before giving the green light to any launch in the area. “To set up a regional office we need to first look at if there is an interest in the area, if it’s a regional priority, is there capability and a sector expertise to match India? We then need to identify if there is any value we can add.” While the UKIBC is further advanced in dealings with the North West and the South East, Bamford, believes that Cambridge has one of the strongest offerings and would like to see itself firmly committed to the region by the beginning of the next academic year. “We have had early stage discussions. There is early enthusiasm and as long as international trade partners and EEDA (East of England Development Agency) are aligned, we will be there. We see a large potential in the depth of opportunity here, in the University’s interest in India, the companies here, we are getting the right signals.” Bamford’s mention of the University interest relates most directly to the work of vice chancellor, Alison Richard, who recently spent almost two weeks in India. “We would look to build on the work of the vice chancellor, Alison Richard, who spent 12 days in India,” said Bamford. “That is a huge commitment and demonstrates the high priority it has to Cambridge and the region. The plan is to work closely with partners in the area, so we need their commitment and buy in.” Their ‘buy in’ entails not only a like-minded approach, but a financial commitment and any UKIBC office in the region would be a 50 per cent partnership between it and the local partners. Though essentially it would initially just be one person and possibly an administrator, the work would be plugged into a wider network run from its London headquarters. UKIBC will be a member organisation, funded by participating businesses. The region’s appetite for India is strong and it already has a number of initiatives designed to increase trade and collaborations with India. Inward investment body, East of England International, has a hotlist of companies keen on JVs here and Indian companies are prominent on that radar screen. THINKindia is an initiative that’s trying to bridge the cultural, academic and corporate divide between this region and India in areas such as renewable energy sources, crop science and high technology. Bamford says so far there has been no difficulties in its dealings with the region’s relevant economic partners, rather it’s just a matter of time, “about getting dates in the diary. “Cambridge has all the component parts and understanding of what it takes to create the right ‘eco-system,’ what it takes for entrepreneurship to flourish. To take an idea and enhance its success requires all the right-minded support systems: early stage investors, banks, accountants, education, lawyers, and networks, all the bits that will help shape the ideas. Cambridge has all those key components and is an outstanding model.” Despite having one of the strongest relationships in international trade, Bamford says that misconceptions about the UK’s entrepreneurial attitudes means India’s most brilliant entrepreneurs increasingly head to the US. Bamford believes there is already enough going on between the UK and India to begin building the bridges that will link the two for years to come. “KPMG and PWC have over 200 Indians working for each of them in London, just a stone’s throw from here. They will go back to India, but we want to engage with them and build bridges first.” Engaging with the next generation of Indian entrepreneurs is one of the key elements in UKIBC’s strategy and while it is tempting to take the strength of the relationship between the UK and India for granted, Bamford says it is anything but. UKIBC will help both economies benefit from each other and Bamford says Cambridge can play an integral role in helping India achieve its 2020 vision of being a knowledge-based economy, but first some important issues need to be addressed. “In Cambridge the sky’s the limit,” says Bamford. “First we need to ensure that companies understand the realities of doing trade in India, the barriers they face, the commitment it takes. “There is a perception barrier between the two. On the positive side, there is great affection and a deep relationship between India and the UK, but there is still quite an old fashioned view of the country. When Indians think of Cambridge and Oxford, they think cloisters and colleges. “They see MIT and Stamford as young and vibrant for investors, a place that can start to make things happen, whereas here they see it as a little staid and fuddy duddy. If you look at Cambridge it is not true, because if you have an idea it has everything you need to make it happen. A Cambridge UKIBC would help to change this.” Bamford also intends to redress misconceptions of trading in India and she doesn’t’ plan on covering up some of the harsher realities. “You equally need to change perception of India across the whole of the UK. It is not just a developing country with poverty, there are pockets of great innovation while there is still poverty and problems with infrastructure. We need to make sure that people are aware of both.” The Indian Angel Network may also feature in the region. It is India’s largest business angel group and has grown to over 65 members in 20 months and includes some of the most successful Indian entrepreneurs, CEOs and institutions. Operating from Delhi, Mumbai and Bangalore, it has already made 10 investments across several sectors and has a strong pipeline of others to follow.
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