http://www.aljazeera.com/news/asia/2013/02/201321893858610152.html
The UK prime minister has gone to India with a delegation of a hundred CEOs and investors to make way for more economic ties between India and Britain. The PM called for the Indian government to ease up the rules of trade by removing the barriers of trade. India is rising power in the world with many untapped markets for goods and services. Being the second most populated country in the world a, India is the prime market for foreign investors, despite a sharp slow down to the growth in the economy. The current laws restrict imports and this makes doing business in India harder. Britain's exports account for roughly thirty percent of their GDP
With India's slow down in economic growth, this is a perfect opportunity for India to lift its restrictions on imports and trade. Also, with foreign investors entering the country and setting up businesses could also lead to economic stimulation with the creation of jobs and other prosperous industries. India is one of the most populated countries in the world with many resources and this could be a very prosperous opportunity for them.
ReplyDeleteOn the other hand, this can be seen as another exploitative rush by the British for India's potential growth - cultural geographically known as Neocolonialism. India should play its cards right because for the British PM to bring together such a strong delegation, there is clearly something of great value that benefits them. In this case, the British need to Indians, it is not the other way round.
ReplyDeleteFrom these international discussions, we could see an agreement similar to NAFTA--without the geographic proximity, of course. When two (or multiple) nations decide to align themselves economically, it can be very beneficial to facilitating the movement of goods and services. It can also, however, strain the relationship between two countries; if India, say, were to undergo a decrease in production, will Britain be there to pick up the slack?
ReplyDeleteThis is undoubtedly a valuable opportunity for the Indian government. The country has already been having problems with their currency weakening against the dollar significantly without a large rise in export. They are also in need of more foreign investment since the restrictions on FDI are currently very tight.
ReplyDeleteThis foreign investment could also provide the country with a much needed way to bolster is stagnating growth rate which fell sharply in the recent past.