PM’s engagements in UK – November 12, 2015
PM’s engagements
in UK – November 12, 2015
Holds bilateral talks with UK PM
Pays homage at Gandhi Statue in Parliament Square, London
Delivers speech in British Parliament
Addresses the City of London at Guildhall
The Prime Minister, Shri Narendra Modi, arrived in London on November 12th, 2015. He was accorded a guard of honour and an official welcome by the Prime Minister of the United Kingdom, Mr. David Cameron.
The Prime Minister held delegation-level talks with the Prime Minister of the United Kingdom. During his press statement after the talks, the Prime Minister said that he is delighted to visit the United Kingdom.
Speaking in Hindi, the Prime Minister said: “This is a relationship of immense importance to us. The familiarity of history, the extraordinary people-to-people ties and our shared values give it a special character. We also have vibrant and growing partnerships across all areas – trade and investment, defence and security, science and education, clean energy and health, technology and innovation, and culture. We have a broad range of shared interests at the international level that are vital to both countries.
We have agreed to intensify our political dialogue and hold regular bilateral summits. We have decided to turn our shared values into a partnership to support development in other regions of the world. And, we have committed to deepen cooperation across all areas.
The conclusion of the civil nuclear agreement is a symbol of our mutual trust and our resolve to combat climate change. The agreement for cooperation in India’s Global Centre for Clean Energy Partnerships will strengthen safety and security in the global nuclear industry.
Our economic partnership is quite robust and a key pillar of our partnership. I expressed confidence that this relationship grow rapidly in the years ahead, given the size and scale of opportunities in a rapidly expanding India and Britain’s own formidable economic strengths. UK is already the third largest investor in India. There is more investment from India in UK than in rest of European Union combined. We will launch a new fast track mechanism for UK investments in India. The revival of India-UK CEO Forum is a welcome step.
We will also increasingly raise funds in London’s financial market. I am pleased, but also believe it is natural, that we will issue a Railways Rupee Bond in London. This is where the journey of Indian Railways began.”
In his speech at the Parliament of UK, the Prime Minister said: “the motto of Sab Ka Saath, Sab Ka Vikas, is our vision of a nation, in which every citizen belongs, participates and prospers.
It is not just a call for economic inclusion.
It is also a celebration of our diversity; the creed for social harmony; and, a commitment to individual liberties and rights.
This is the timeless ethos of our culture; this is the basis of our constitution; and, this will be the foundation of our future.”
The Prime Minister addressed the business community of the City of London, at Guildhall.
The Prime Minister said, “UK and India have known each other very well since several centuries. Our system of Governance is also based largely on the Westminster model. - Our institutions know to interact with each other; - Our people know to work with each other; - Our businesses know to grow with each other
That is the reason that UK is among India’s major trading partners. UK is also the third largest foreign investor in India. And I must add- this is not one sided. India has emerged as the third largest source of FDI for UK. However, there is significant potential for India and UK to further strengthen their economic ties.
We have to effectively leverage the mutual understanding which is there for each other. We are particularly keen to develop the sectors where UK is strong. We are working hard to create conducive conditions for this engagement. A strong Indian community here keeps pushing us for better and better integration with UK.”
The Prime Minister paid homage at the statue of Mahatma Gandhi in Parliament Square. The iconic London landmarks of Tower Bridge and London Eye were draped in the colours of India – saffron, white and green. Prime Minister Cameron hosted Prime Minister Narendra Modi for a private dinner at Chequers, his country-house retreat.
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Joint Statement on
the UK-India Summit 2015 (November 12, 2015)
Prime Minister Narendra Modi and Prime Minister David Cameron met in London on 12-13 November. The two Prime Ministers celebrated the growing strength, breadth and depth of the relations between the two countries. They emphasized that this enduring connection between the UK and India plays a vital role in safeguarding and promoting the security and prosperity of both peoples. India’s economic development and rise as a global power affords opportunities to further deepen and extend this partnership to foster economic growth and inclusive development, update and strengthen the rules based international system, and counter global threats.
The two Prime Ministers endorsed a "Vision Statement” setting out the fundamental principles on which the UK-India partnership is built, and outlining a roadmap for deepening co-operation. They resolved to hold biennial PM-level summits to advance the partnership. They also resolved to agree on a new Defence and International Security Partnership which will intensify cooperation on defence and security, including cyber-security, counter-terrorism and maritime security.
Noting that addressing climate change and promoting secure, affordable and sustainable supplies of energy are shared strategic priorities for India and the UK, they agreed to endorse a Joint Statement on Energy and Climate Change. The two Prime Ministers also agreed to scale up bilateral cooperation to a global partnership for development through a "Statement of Intent on Partnership for Cooperation in Third Countries” which will facilitate working together to benefit third country partners by assisting them in addressing their development challenges in a wholly demand driven manner.
A Global Partnership
The two Prime Ministers noted that in an increasingly complex and interconnected world, deepening the already close partnership on global issues would be vital for safeguarding and promoting prosperity and security.
They agreed that this prosperity and security rests on an international system of rules, widely accepted and consistently applied. The international architecture built 70 years ago has played an invaluable role in securing the space for transformational development. Since the world has changed, this rules-based international system should adapt and renew itself. Prime Minister Cameron reaffirmed the UK’s commitment to a reformed United Nations Security Council with India as a Permanent Member, and to enhancing India’s voice in international financial institutions. Both Prime Ministers underscored the importance they attach to the G20. They agreed to remain engaged closely with each other and with other G20 members to realize the full potential of the G20 as the premier forum for international economic cooperation as well as for successful outcomes at the G20 Summits.
The UK and India share interests in stability and prosperity across Asia and the Indian Ocean. Taking into account India’s geostrategic location and interests in the South Asian region, the two Prime Ministers resolved to deepen and extend existing bilateral consultation and cooperation in these areas through the establishment of an annual senior official South Asia dialogue covering security including terrorism, connectivity, and maritime issues.
The leaders condemned terrorism in all its forms and manifestations, and directed their relevant officials to have close and regular consultations on UN terrorist designations. They reiterated their call for Pakistan to bring the perpetrators of the November 2008 terrorist attack in Mumbai to justice.
The two Prime Ministers stressed the importance of a lasting and inclusive constitutional settlement in Nepal that will address the remaining areas of concern and promote political stability and economic growth. They hoped the National Reconstruction Authority begins to function as soon as possible to facilitate post earthquake reconstruction. They also hoped that, following the recent UN Human Rights Council Resolution, Sri Lanka will now be able to deliver lasting peace and prosperity for all its people and underlined their commitment to working with the Sri Lankan Government to achieve this. They emphasised the importance of a stable and inclusive democracy in the Maldives including an independent judiciary.
The two Prime Ministers emphasised their shared commitment and support for a stable, secure and successful future for a sovereign, democratic and united Afghanistan. They emphasised the importance of a sustainable and inclusive political order in Afghanistan which ensures that the gains of the past decade are consolidated and remain irreversible.
The two Prime Ministers stressed the need for inclusive political settlements in Syria and Iraq and committed to further support the victims in these brutal conflicts. They agreed to continue to hold regular annual senior officials dialogue on West Asia/Middle East, as a priority area for both countries.
The two Prime Ministers welcomed the historic agreement on Iran’s nuclear programme, and noted the strong commitment of the international community to its swift and full implementation. The two Prime Ministers agreed that the only way to de-escalate the crisis in eastern Ukraine was the full implementation of the Minsk measures by all parties to the agreement.
The two Prime Ministers welcomed the adoption of the Post-2015 Development Agenda ‘Transforming our World: the 2030 Agenda for Sustainable Development’ and committed to supporting its implementation. They recognized that the new 2030 Agenda along with the Sustainable Development Goals has poverty eradication as its overarching focus.
The two Prime Ministers noted with satisfaction, the progress made at the 2015 India-UK Cyber Dialogue. They supported an open, inclusive, transparent, and multi-stakeholder system of internet governance and welcomed the ongoing review of the World Summit on the Information Society by the United Nations General Assembly. They planned to work together to promote cyber security, combat cyber crime, and advance voluntary norms of responsible state behaviour and the application of international law in cyberspace.
They agreed to improve cooperation between their technical, law enforcement, cyber R&D, cyber security standards & testing and capacity building institutions. They also agreed to promote public-private partnerships to support all aspects of cyber security. They welcomed the 2015 report of the UN Group of Governmental Experts on international cyber security and looked forward to seeking broader agreement on principles guiding state behaviour in cyberspace. They also expressed the need for both India and UK to participate and actively cooperate in these areas in the future.
The Prime Ministers reaffirmed their commitment to ensuring that the Commonwealth remains relevant, realises its potential, and brings strong values, development and prosperity to all its citizens.
The two Prime Ministers noted the importance of preserving the environment and sustaining diverse ecosystems, and recognised the rise of international criminal networks engaged in the illegal wildlife trade. They resolved to work together to combat the illegal wildlife trade and to improve protection for both captive and wild Asian elephants. India endorsed the London Declaration and Kasane Statement on Illegal Wildlife Trade.
Economic Development and Finance
The two Prime Ministers welcomed the strengthening economic outlook in both the UK and India but shared their concern that global growth is falling short of expectations and that the risks to the global outlook have increased. They agreed to continue working towards strong, sustainable and balanced growth, and agreed on the importance of structural reforms and pursuing credible fiscal policies in order to raise living standards. They hailed the strength of the economic partnership between India and the UK: India already invests more in the UK than in the rest of the EU combined, and the UK is the largest G20 investor in India. They committed to further strengthening the economic relationship, including through deepening the bilateral trade and investment relationship, and agreed that Finance Minister Arun Jaitley and Chancellor of the Exchequer George Osborne will drive this forward in their forthcoming Economic and Financial Dialogue.
The UK and India remain committed to working together to substantially increase trade and investment opportunities. The two governments underlined the particular importance of the information technology and digital industries in both countries, and the contribution that they make towards strengthening trade ties between the UK and India as a key driver of growth and prosperity. Both sides reaffirmed their commitment to work together to deepen and reinforce bilateral trade in goods and services in this area. Acknowledging the valuable contributions made by skilled workers to both countries’ economies, they agreed to facilitate the temporary movement of skilled personnel in accordance with applicable international commitments.
The two Prime Ministers agreed that the City of London should play an important role in channelling investment into infrastructure projects in India including in the railways sector, laying the foundation for a long-term strategic partnership that leverages the capital and expertise of the City of London to finance India’s continued rapid growth. In this context, they also welcomed the announcements by HDFC, Bharti Airtel, State Bank of India and Yes Bank to raise finance through the City of London which also opens up the opportunity for the Indian private sector to raise capital for their investment and growth.
The two Prime Ministers welcomed a long-term strategic partnership between India and the UK on the former’s flagship infrastructure investment initiative, the National Infrastructure Investment Fund (NIIF), and announced the setting up of a India-UK partnership fund under the umbrella of the NIIF. The collaboration will help bring global investors through the City of London to help finance Indian infrastructure in a sustainable way, further supporting India’s rapid growth.
Prime Minister Modi and Prime Minister Cameron welcomed the ongoing collaboration by the India-UK Financial Partnership led by key industry figures on both sides. They look forward to considering the Partnership’s proposals for deepening the links between the two countries’ financial services. The two Prime Ministers welcomed the creation of a new Chevening Financial Services course, sponsored by Standard Chartered, aimed at mid-career professionals wanting to study in the UK. They also welcomed the initiative taken to launch the first-ever exchange programme between the economic services of our two countries to support economic policy making in both countries.
The two Prime Ministers agreed that India’s huge achievements in economic growth and inclusive development are not just important for India’s own ambitious goals and targets, but an inspiration to the world and critical to the achievement of global targets. They recognised that both India and the UK are thought leaders on development, and agreed to elevate the official-level development talks to a Biennial Ministerial dialogue on Development.
The two Prime Ministers recognised the importance of infrastructure for sustainable development and launched India’s first Low Income State Infrastructure Equity Partnership with co-investment from the UK Department of International Development and the State Bank of India. This aims to provide equity partnerships for small infrastructure development in sectors like water & sanitation, clean energy and urban infrastructure.
Prime Minister Modi noted the partnership of UK and India in efforts to improve the Ease of Doing Business. They announced a new Ease of Doing Business Partnership including several different strands of work which will provide impetus to greater investments.
The two Prime Ministers welcomed the first meeting of the reconstituted India-UK CEOs Forum. This Forum will be tasked with advising the Prime Ministers about the trade and investment opportunities and challenges. Prime Minister Cameron welcomed a new fast track mechanism by DIPP for UK investments into and trade with India. The two Prime Ministers acknowledged the need for technical cooperation between the offices of both the countries on Patents, Trademarks and Designs.
Prime Minister Modi appreciated the advances made by UK in rail project management and operations. The two Leaders welcomed the MoU on Technical Co-operation in the Rail sector and acknowledged the potential business opportunities for the rail industry. Both sides agreed to encourage their institutions to work together, develop options for infrastructure financing, share knowledge and expertise and to deepen research and development exchanges. Prime Minister Modi announced the Government of India’s intention to launch the first government-backed rupee bond in London.
The two leaders expressed their wish to promote innovation led growth in the automotive sector in India. They identified a need to collaborate and exchange technical knowledge in research and development, testing and administration of testing systems for vehicles. The UK and India are willing to share expertise in these fields to develop knowledge and experience. This will be achieved through an MoU to be signed between appropriate departments and agencies under the Government of India and UK.
Prime Minister Cameron and Prime Minister Modi recognised the importance of the multilateral, rules-based trading system, and agreed to work together to help ensure a successful outcome at the Nairobi World Trade Organization Ministerial in December, in conformity with the development mandate of the Doha Development Agenda.
The UK and India agree that corruption is one of the greatest enemies of progress in our time. Both sides will work together, bilaterally and in multilateral fora like UNCAC and G20, in order to strengthen the global response to corruption, including through improving cooperation among law enforcement agencies, strengthening procedures for the identification and return of stolen assets, and increasing transparency around the true (or "beneficial”) ownership and control of companies.
Both Prime Ministers reaffirmed their commitment to finalization of an EU-India BTIA as soon as possible. The UK and India committed to work closely together towards this end.
Make in India
Prime Minister Cameron welcomed Prime Minister Modi’s ‘Make in India’ initiative. Prime Minister Modi noted that this model of collaboration was already deeply ingrained in UK investments and partnerships with India. The two Prime Ministers welcomed the initiatives taken by both sides to deepen defence technology and industry cooperation.
Business
Prime Ministers Cameron and Modi noted the deep and fruitful business relationship between the UK and India and welcomed the £9.2 Billion of commercial deals between the UK and India announced during the visit and listed in the annex. The UK has accounted for 8.56% of total foreign direct investment in India during the last 15 years. Indian companies employ 110,000 people in the UK.
Prime Minister Cameron noted the opening of the Indian market to greater foreign direct investment in the insurance sector. In order to extend insurance cover to India’s large population, the Government has increased the FDI limit in insurance and pension sector to 49%. As a result, the UK’s insurance industry with joint ventures in India, have announced a number of agreements to increase their Foreign Direct Investment in the country. These agreements would amount to approximately £238 million of Foreign Direct Investment in the first instance subject to regulatory approvals. This will support the ongoing development of the Indian insurance and reinsurance sectors, which are key elements in promoting sustainable economic growth. The two Prime Ministers welcomed HSBC’s "Skills for life” initiative in India, a £10 million programme to skill 75,000 disadvantaged young people and children over 5 years.
Smart Cities and Urban Renewal
The two Prime Ministers announced three UK-India city partnerships with Indore, Pune and Amaravati to support India’s ambitious urban development goals through technical assistance, expertise sharing and business engagement.
The two Prime Ministers welcomed the development of Technical Assistance partnership between the UK Department of International Development and the Indian Ministry of Urban Development for national and state-led support for the development of smart and sustainable cities that are drivers of inclusive growth and job creation.
The two Prime Ministers launched a new Thames/Ganga partnership for healthy river systems. This partnership will consist of a collaborative programme of research and innovation to enable the sustainable management of water resources in the Ganga basin and a policy expert exchange in 2016 supported by the UK Water Partnership.
Education, Skills, Science and Research
Prime Minister Cameron offered to support Prime Minister Modi achieve his goal of preparing young Indians for the 21st Century. Under the new UK-India Skills pledge, 11 UK companies have committed to support skills development in India. Together, the UK government and UK businesses will establish new "Centres of Excellence” in key sectors, starting with a centre for Automotive and Advanced Engineering in Pune. The UK will also support the Indian Ministry of Skill Development and Entrepreneurship to develop new models of skills training and entrepreneurship with a focus on digital delivery, women, the excluded and the disabled.
The two Prime Ministers announced that 2016 would be the UK-India year of Education, Research and Innovation. This will highlight the strengths of the bilateral relationship, drive further collaboration, including a range of digital technology enabled education and training initiatives, so that both countries create a new 21st century framework as partners in education, research and innovation partners, in the global context.
Both Prime Ministers agreed to initiate virtual partnerships at the school level to enable young people of either country to experience the school system of the other country and develop an understanding of the culture, traditions and social and family systems.
The Prime Ministers announced that UK will be the partner country for the 2016 Technology Summit in Delhi. Committed to promote further joint research partnerships, the two Prime Ministers noted with satisfaction, the planned academic exchange which would enable access for Indian scientists to the Neutron Facility at the Rutherford Appleton Laboratory in Oxford University. They welcomed the establishment of a Newton-Bhabha fund for joint research, capacity building and translation, noting that joint investment in UK-India research has grown from less than £1 million in 2008 to over £200 million today. New substantial investments include multi-million-pound UK-India virtual centres in Clean Energy, Water Security and Agricultural Nitrogen. The two Prime Ministers also welcomed new joint research and innovation programmes on Childhood and Maternal Health and Nutrition, Mental Health and Substance Abuse, Urbanization and Heritage, Sustainable Water Resources for Food, Energy and Ecosystem Services, Atmospheric Pollution and Human Health in an Indian Megacity, Aquaculture, and the joint UK-India observational campaign on the South Asian Monsoon.
They welcomed the announcement by Innovate UK, the Department of Science and Technology (DST) and the Global Innovation and Technology Alliance (GITA), of the opening of a third round of collaborative industrial R&D, making up to £3.5 million available to support novel commercial solutions in the areas of clean-tech energy, affordable healthcare and ICT related to clean-tech energy and healthcare.
The two Prime Ministers recognized that climate change and its impact on agriculture was a serious challenge confronting the world; they welcomed establishing the joint India-UK collaboration in crop sciences which will bring together the best UK universities – Cambridge University, National Institute of Agricultural Botany, John Innes Centre, Rothamsted Research and University of East Anglia to work through Biotechnology and Biological Sciences Research Council (BBSRC), Government of UK and the Department of Biotechnology (DBT), Government of India to address fundamental plant science underpinning yield enhancement, disease and drought resistance and translation of research into sustainable agriculture. They also welcomed establishing of a joint Indo-UK Plant Science Centre in India.
The two Leaders welcomed UK’s plans to send 100 academics to India over the next two academic years as part of the Global Initiative for Academics Network (GIAN); and the ambition for 25,000 UK students to come to India through the Generation UK-India programme by 2020, including 1000 UK interns with Tata Consultancy Services in India by 2020. The two Prime Ministers also welcomed the 3rd phase of the UK India Education and Research Initiative.
The two Prime Ministers welcomed the commitment to achieving mutual recognition of UK and Indian qualifications.
Health The two Prime Ministers were also happy to announce the setting up of joint India-UK Vaccine Development collaboration between the Department of Biotechnology and Research Councils, UK. The Department of Biotechnology would also work with Research Councils to establish a strategic group which would explore the mechanisms to develop the evidence base which would address anti-microbial resistance at the genomic level of the host-pathogen interactions to accelerate the development of new drugs and diagnostics.
The two Prime Ministers underlined their joint determination to address antimicrobial resistance (AMR), noting that it poses a grave public health and economic threat to both countries. Both Prime Ministers recognised that a global response is required and supported a high level meeting on antimicrobial resistance at the 2016 UN General Assembly. India and the UK will also contribute their scientific expertise to a global summit to be held in London in 2016 as part of the AMR initiative of the Department of Biotechnology, Government of India and the Research Councils, Government of UK.
The two Prime Ministers welcomed the cooperation in the health sector between the two countries and the on-going Memorandum of Understanding covering areas including Medical Education and Training, Universal Health Coverage, containment of Anti-Microbial Resistance (AMR), improving patient safety through quality, safe and efficacious drugs and the collaboration between NICE International, UK and the Department of Health Research in India on medical technology assessment.
The two Prime Ministers emphasised the potential increased investment and co-operation in health and related sectors. Prime Minister Cameron welcomed the decision of the Indian Government to set up a taskforce under the stewardship of the Department of Health and Family Welfare to facilitate such investment. The two Prime Ministers welcomed the agreement signed between King’s College Hospital NHS Foundation Trust and Indo UK Healthcare Pvt Ltd to open King’s College Hospital, Chandigarh.
The two Prime Ministers noted the finalisation of a Memorandum of Understanding between Ministry of AYUSH, Government of India and a leading UK institute for Integrated Medicine to strengthen and develop cooperation in the field of research and education in this area.
Culture
The two Prime Ministers announced that a UK-India Year of Culture will be organised in 2017 to celebrate our deep cultural ties and the 70th anniversary of Indian Independence. The two Prime Ministers committed support to the digitization of the shared archival collections housed in the British Library and the National Archives of India.
Both Prime Ministers welcomed the posthumous reinstatement of Shyamji Krishna Varma to the bar, noting his key role in the Indian independence movement and the inspiration he has provided to subsequent generations.
The two Prime Ministers welcomed the intention of the Indian Ministry of Tourism and the UK Department for Culture, Media and Sport to sign a Memorandum of Understanding on Tourism to promote safe and sustainable tourism between the two countries.
Crime
Prime Minister Cameron and Prime Minister Modi noted that in an increasingly complex and interconnected world, enhancing cooperation to target criminals across borders will be critical for guaranteeing the security and safety of both nations. They agreed to work together to disrupt the flow of New Psychoactive Substances that harm both countries and to open the door for further negotiations on criminal record exchange to ensure greater collaboration between law enforcement agencies in both India and the UK.
Prime Minister Cameron and Prime Minister Modi reiterated their determination to enhance cooperation in the area of Mutual Legal Assistance in Criminal Matters, particularly where it is related to terrorism cases.
The two Prime Ministers reaffirmed the importance of co-operation to tackle the trafficking of stolen artefacts/antiquities.
Conclusion
Prime Minister Modi thanked Prime Minister Cameron for the warm hospitality extended to him and his delegation and invited Prime Minister Cameron to visit India in 2016. The two leaders affirmed their vision of a forward-looking partnership between the UK and India that would play an indispensable role in creating economic growth, jobs and security for the people of both countries. They reaffirmed their commitment to working together to build such an enhanced and transformative partnership for the betterment of their two countries and the world.
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Text of PM’s
address at the Indo-UK Business Meeting at Guildhall, London
Your Excellency Mr. David Cameron!
Hon. Mr. Alan Yarrow, the Lord Mayor of London!
Ladies and Gentlemen!
It is a great pleasure for me to be with you this evening. I must confess that there has been a delay in my coming to this great country. But, the good news is that myself and His Excellency Cameron have been in constant touch.
We have been meeting frequently at various places and exchanging views. I remember our last meeting in New York where he rightly said that India and UK should work closely on the economic front.
Friends!
UK and India have known each other very well since several centuries. Our system of Governance is also based largely on the Westminster model.
• Our institutions know to interact with each other;
• Our people know to work with each other;
• Our businesses know to grow with each other
That is the reason that UK is among India’s major trading partners. UK is also the third largest foreign investor in India. And I must add- this is not one sided. India has emerged as the third largest source of FDI for UK. However, there is significant potential for India and UK to further strengthen their economic ties.
We have to effectively leverage the mutual understanding which is there for each other. We are particularly keen to develop the sectors where UK is strong. We are working hard to create conducive conditions for this engagement. A strong Indian community here keeps pushing us for better and better integration with UK.
Friends! Since my Government took over, we have been working relentlessly to put the economy on track. Particularly, we have worked very aggressively to make India an easy and simple place to do business. We believe that this is necessary for improving the lives of ordinary citizens in India.
The results of our hard work are now visible. IMF Chief has recently said that India is among few bright spots in global economy today. Our growth rate in the last year was 7.3%.
The World Bank has very recently projected our growth rate at 7.5% for this fiscal and even better in the coming years. Thus, we are fortunate to be sailing in the right direction. In the World Bank Report of 2016 on ease of doing business, India has moved up by 12 ranks at one go. No other country has made such a big improvement.
We are also committed to take these corrections at the State, district and city level. States are moving hand-in-hand with the federal government in this task in the spirit of cooperative and competitive federalism.
Recently, we did a ranking of our state governments on ease of doing business with the help of the World Bank Group. This has prompted the state governments into a healthy competition among themselves to ensure a business friendly eco-system.
This was for the first time that the World Bank involved itself in a sub-national exercise on ease of doing business.
Friends!
One of the biggest challenges in India today is to productively employ the youth. For meeting this challenge, we need to provide a huge push to manufacturing which has stagnated at around 16% of the GDP for several decades. This share must reach around 25% in the short and medium term. With this in view, we have launched the “Make in India” initiative. We are working on all fronts to make India a global manufacturing hub.
To achieve this objective, apart from vigorous exercise for ease of doing business, we have fast tracked approvals and clearances for industry and infrastructure. The hall mark of our strategy now is Policy driven Governance. Measures like transparent auction and allocation of key natural resources like coal, spectrum, iron ore have created a level playing field for investors.
To enhance the flow of foreign investments, we have liberalized the FDI regime allowing 100% FDI in railways. We enhanced the FDI limits to 49% in Defence and Insurance. We are also conscious of the last mile operational issues in such policies. In that spirit, early this week, we have carried out substantial changes in the FDI regime across 15 sectors.
To give an example: now there are just no restrictions in the FDI Policy for construction sector. Similarly, very radical liberalization has been done in sectors like plantation, e-commerce and single brand retail. Moreover, we have now brought most of the FDI proposals under the automatic route.
With this round of reforms, I can say that India is among the most open countries for Foreign Investments.
Infrastructure is another big challenge for India. We are keen to build futuristic physical and social infrastructure. Through self-imposed discipline in financial management, we have been able to allocate more resources for infrastructure sectors. In addition, we are setting up an India Investment and Infrastructure Fund. We have targeted an annual contribution of 3.5 billion US Dollars into this fund from our own resources. We are putting in place a professional team for asset management.
We have also come up with the mechanism of Tax Free Infrastructure Bonds for projects in rail, road and other sectors. We will work together with the British Government, Industry and the financial markets to deepen our relationship and harness their interest in India’s infrastructure. Very soon, these bonds will become strong instruments for engagement between our financial markets.
Friends!
There were a number of regulatory and taxation issues which were adversely impacting on the sentiments of foreign investors. We have taken very decisive steps to remove a number of long pending concerns.
To give you some examples:
• We have expedited regulatory clearances including security and environmental clearance;
• We have increased the validity period of defence industrial licences up to eighteen years from three years previously;
• We have taken almost 60% of the defence items out of the licensing process and liberalised a number of restrictions like end-use certificate for the exports
• We have clearly articulated that we will not resort to retrospective taxation and demonstrated this position in a number of ways
• This includes not going for imposition of Minimum Alternate Tax on FPIs;
• We have introduced the concept of composite sector caps for the FPIs and other foreign investors.
• We have notified the regulations for the Alternative Investment Funds;
• We have rationalized the capital gains tax regime for Real Estate Investment Trusts
• We have modified the Permanent Establishment norms;
• We have also decided to defer the implementation of the General Anti-Avoidance Rules for two years;
• We have introduced the GST Bill in parliament; we are hopeful to roll it out in 2016;
• We are working on a new bankruptcy code; the Company Law Tribunal is soon going to be formed.
Friends!
We want to make sure that our tax regime is transparent and predictable. We are also keen to see that genuine investors and honest tax payers get quick and fair decisions on tax matters.
As a result of our initiatives,
• the sentiments for private investment and inflow of foreign investment have turned positive.
• FDI inflows have gone up by 40% compared with previous year’s corresponding period.
• India has been recently ranked as the most attractive investment destinations by Ernst & Young• In a ranking of the top greenfield investment destinations in the first half of 2015, India is at number one.
• Foreign Policy magazine of USA has ranked India as number one FDI destination.
• In a study of 100 countries on Growth, Innovation and Leadership, India has been ranked No.1 by Frost & Sullivan.
• India has improved its UNCTAD ranking of investment attractiveness from 15th to 9th.
• India has also jumped 16 places on the World Economic Forum’s global competitive index.
• MOODY’s have upgraded the rating of India as positive.
Thus, just in eighteen months, we have successfully restored the credibility of India in the eyes of global players. Through PPP, we are encouraging private investments in areas where earlier only government used to invest. We are also divesting our stake in the public sector enterprises, to instill market discipline. We are keen to learn from your experience in structuring and implementing PPP projects.
I am personally convinced and want to assure you that India is committed to protect Intellectual Property Rights of all innovators and entrepreneurs. We have taken several initiatives for transparency and online processing in IP administration. A comprehensive National IPR policy is being finalized.
Friends!
We want your active involvement in translating our dreams into reality. Our commitment and aggressiveness to achieve the goal in a faster and effective manner offers immense opportunities to British Companies. These opportunities range from building 50 million houses to setting up 100 smart cities; modernization of railway network and re-development of stations to new railway corridors; generation of 175 GW of renewable energy to transmission and distribution networks, from National Highways and bridges, to Metro rail networks. Such a huge potential for creation of infrastructure and production of goods will not be available in any other country. More importantly, no one place on the earth can offer the potential for usage and consumption on such a massive scale.
We are trying to harness this potential through our policies and people. The campaigns like Digital India and Skill India are designed to prepare the people to take part in this process. To tap their energy fully, we have also launched the Start up India Campaign. We have witnessed massive growth in the number of start-ups in the recent past. Some of these have already begun to challenge established global players.
Friends!
India is on the threshold of a big IT revolution. We are encouraging it to fast-track the services to our 1.25 billion people. New Technology and renewable energy is our new Mantra. Whatever we do, we will do in a cleaner and greener way. Energy efficiency, water recycling, waste to energy, clean India and river cleaning are among those initiatives. These initiatives provide additional avenues for investment in modern technology and human resources.
Ours is a country of the vibrant youth and a rising middle class. There is a huge domestic market in India. I have been saying that thethree Ds of Democracy, Demography and Demand is our basic strength. Moreover, talented young minds in India have now begun taking risks. They are preferring to become Entrepreneurs. Thus, we have moved forward from D to E which is Entrepreneurship.
Friends!
Necessary conditions for take-off of the Indian economy have been created. Never before, India was so well prepared to absorb talent, technology and investment from outside. I can assure you that it will get better and better in the coming days. We will be open to welcome your ideas, innovations and enterprises. We are open to carry out necessary corrections in our policies and procedures. Given the visionary and dynamic leadership of Prime Minister Cameron and his interest in India, I am personally eager to work with the British Government and companies.
With these words, I welcome you to India. I assure you of my personal care in making your dreams a reality. Many of you belong to India; Many of you are in India already. But for those who are not there, I must say that:
• At this point of time, it is wiser to be in India;
• Further, we are making it easier to invest in India
And
• Believe me, we are making it even better to ‘Make in India’.
Thank you. Thank you very much.
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Text of PM’s
address to the British Parliament
Lord Speaker,
Mr. Speaker,
Mr. Prime Minister
I am delighted to be in London. Even in this globalised world, London is still the standard for our times. The city has embraced the world’s diversity and represents the finest in human achievements. And, I am truly honoured to speak in the British Parliament.
Mr. Speaker, thank you for opening the doors to us, here in this magnificent setting of the Royal Court. I know that the Parliament is not in Session. Prime Minister Cameron looks relaxed and relieved.
But, I want to remind you, Mr. Prime Minister, that you owe me royalty for an election slogan. I know that you are hosting me at the Chequers this evening. But, I also know that you will understand if I am fair to both sides of the floor. Especially since British MPs of Indian Origin are evenly balanced between the Treasury and the Opposition benches. So, I also extend my good wishes to the Labour. Indeed, since these are still early days after the election, my warm congratulations to the Members of the House. And, greetings to the eminent leaders of Britain and great friends of India present here today.
So much of the modern history of India is linked to this building. So much history looms across our relationship. There are others who have spoken forcefully on the debts and dues of history. I will only say that many freedom fighters of India found their calling in the institutions of Britain. And, many makers of modern India, including several of my distinguished predecessors, from Jawaharlal Nehru to Dr. Manmohan Singh, passed through their doors.
There are many things on which it is hard to tell anymore if they are British or Indian: The Jaguar or the Scotland Yard, for example. The Brooke Bond tea or my friend late Lord Ghulam Nun’s curry. And, our strongest debates are whether the Lord’s pitch swings unfairly or the wicket at Eden Gardens cracks too early. And, we love the Bhangra rap from London just as you like the English novel from India.
So, I stand here today, not as a visiting Head of Government, given the honour to speak in this temple of democracy. I am here as a representative of a fellow institution and a shared tradition.
And, tomorrow, Prime Minister and I will be at the Wembley. Even in India, every young footballer wants to bend it like Beckham. Wembley will be a celebration of one-half-million threads of life that bind us; one and half million people - proud of their heritage in India; proud of their home in Britain.
It will be an expression of joy for all that we share: values, institutions, political system, sports, culture and art. And, it will be a recognition of our vibrant partnerships and a shared future.
The United Kingdom is the third largest investor in India behind Singapore and Mauritius. India is the third largest source of Foreign Direct Investment projects in the United Kingdom. Indians invest more in Britain than in the rest of European Union combined. It is not because they want to save on interpretation costs, but because they find an environment that is welcoming and familiar.
It takes an Indian icon, Tata, to run a British icon and become your nation’s largest private sector employer.
The UK remains a preferred destination for Indian students. And, I am pleased that an Indian company is taking a thousand British students to India to skill them in Information Technology.
We are working together in the most advanced areas of science and technology. We are finding solutions to the enduring human problems of food and health security, and seeking answers to emerging challenges like climate change.
Our security agencies work together so that our children return home safe and our increasingly networked lives are not prey to the threats on cyber space.
Our Armed Forces exercise with each other, so that they can stand more strongly for the values we represent. This year alone, we have had three exercises together.
And, in the international arena, your support has made it more possible for India to take her rightful place in global institutions and regimes. And, it has helped us both advance our common interests.
Mr. Speaker,
Strong as our partnership is, for a relationship such as ours, we must set higher ambitions. We are two democracies; two strong economies; and, two innovative societies.
We have the comfort of familiarity and the experience of a long partnership. Britain’s resurgence is impressive. Its influence on the future of the global economy remains strong.
And, Mr. Speaker, India is new bright spot of hope and opportunity for the world. It is not just the universal judgment of international institutions. It is not just the logic of numbers: a nation of 1.25 billion people with 800 million under the age of 35 years.
This optimism comes from the energy and enterprise of our youth; eager for change and confident of achieving it. It is the result of bold and sustained measures to reform our laws, policies, institutions and processes.
We are igniting the engines of our manufacturing sector; making our farms more productive and more resilient; making our services more innovative and efficient; moving with urgency on building global skills for our youth; creating a revolution in Startup enterprises; and, building the next generation infrastructure that will have a light footprint on the Earth.
Our momentum comes not just from the growth we pursue, but from the transformation that we seek in the quality of life for every citizen.
Much of India that we dream of still lies ahead of us: housing, power, water and sanitation for all; bank accounts and insurance for every citizen; connected and prosperous villages; and, smart and sustainable cities. These are goals with a definite date, not just a mirage of hope.
And, inspired by Gandhiji, the change has begun with us – the way the government works. There is transparency and accountability in governance. There is boldness and speed in decisions.
Federalism is no longer the fault line of Centre-State relations, but the definition of a new partnership of Team India. Citizens now have the ease of trust, not the burden of proof and process. Businesses find an environment that is open and easy to work in.
In a nation connected by cell phones, Digital India is transforming the interface between Government and people.
So, Mr. Speaker, with apologies to poet T.S. Eliot, we won’t let the shadow fall between the idea and reality.
If you visit India, you will experience the wind of change.
It is reflected in the surge of investments from around the world; in enhanced stability of our economy; in 190 million new bank accounts of hope and inclusion; in the increase in our growth to nearly 7.5% per year; and, in the sharp rise in our ranking on Ease of Doing Business.
And, the motto of Sab Ka Saath, Sab Ka Vikas, is our vision of a nation, in which every citizen belongs, participates and prospers.
It is not just a call for economic inclusion. It is also a celebration of our diversity; the creed for social harmony; and, a commitment to individual liberties and rights.
This is the timeless ethos of our culture; this is the basis of our constitution; and, this will be the foundation of our future.
Mr. Speaker,
Members and Friends,
The progress of India is the destiny of one-sixth of humanity. And, it will also mean a world more confident of its prosperity; and, more secure about its future.
It is also natural and inevitable that our economic relations will grow by leaps and bounds. We will form unbeatable partnerships, if we combine our unique strengths and the size and scale of opportunities in India.
We will see more investment and trade. We will open new doors in the Services sector. We will collaborate more – here and in India - in defence equipment and technology. We will work together on renewable and nuclear energy.
We will explore the mysteries of science and harness the power of technology and innovation. We will realise the opportunities of the digital world. Our youth will learn more from - and with - each other.
But, a relationship as rich as this, with so much promise as ours, cannot be measured only in terms of our mutual prosperity.
Ours is an age of multiple transitions in the world. We are yet to fully comprehend the future unfolding before us. As in the previous ages, it will be different from the world we know.
So, in the uncharted waters of our uncertain times, we must together help steer a steady course for this world in the direction that mirrors the ideals we share.
For, in that lies not just the success of our two nations, but also the promise of the world that we desire. We have the strength of our partnership and the membership of the United Nations, the Commonwealth and the G-20.
We live in a world where instability in a distant region quickly reaches our doorsteps. We see this in the challenges of radicalization and refugees.
The fault lines are shifting from the boundaries of nations into the web of our societies and the streets of our cities. And, terrorism and extremism are a global force that are larger than their changing names, groups, territories and targets.
The world must speak in one voice and act in unison to combat this challenge of our times. We must adopt a Comprehensive Convention on International Terrorism in the UN without delay. There should be no distinction between terrorist groups or discrimination between nations. There should be a resolve to isolate those who harbour terrorists and willingness to stand with nations that will fight them honestly. And, we need a social movement against extremism in countries where it is most prevalent and, every effort to delink religion and terrorism.
Oceans remain vital for our prosperity. Now, we have to also secure our cyber and outer space. Our interests are aligned across many regions. We have a shared interest in stable, prosperous and integrated South Asia, drawn together in a shared march to prosperity.
We want an Afghanistan that is shaped by the dreams of the great Afghan people, not by irrational fears and overreaching ambitions of others.
A peaceful, stable Indian Ocean Region is vital for global commerce and prosperity. And, the future of Asia Pacific region will have profound impact on all of us. We both have huge stakes in West Asia and the Gulf.
And, in Africa, where, amidst many challenges, we see so many promising signs of courage, wisdom, leadership and enterprise. India has just held an Africa Summit, in which all 55 countries, and 42 leaders participated.
We must also cooperate to launch a low carbon age for a sustainable future for our planet. This is a global responsibility that we must assume in Paris later this month.
The world has crafted a beautiful balance of collective action – common but differentiated responsibility and respective capabilities.
Those who have the means and the know-how must help meet the universal aspiration of humanity for clean energy and a healthy environment. And, when we speak of restraint, we must not only think of curbing fossil fuels, but also moderating our lifestyles.
We must all do our part. For India, a target of 175 GW of additional capacity in renewable energy by 2022 and reduction in emission intensity of 33-35 % by 2030 are just two of the steps of a comprehensive strategy.
I have also proposed to launch during the COP 21 meeting an International Solar Alliance to make solar energy an integral part of our lives, even in the most unconnected villages.
In Britain, you are more likely to use an umbrella against rain than the sun. But, my team defined the membership of the Solar Alliance in more precise terms: you have to be located within the Tropics.
And, we are pleased that the United Kingdom qualifies! So, we look forward to an innovative Britain as a valuable partner in this endeavour. Prime Minister Cameron and I are, indeed, very pleased that cooperation on affordable and accessible clean energy is an important pillar of our relations.
Mr. Speaker,
This is a huge moment for our two great nations. So, we must seize our opportunities, remove the obstacles to cooperation, instill full confidence in our relations and remain sensitive to each other’s interests.
In doing so, we will transform our strategic partnership, and we will make this relationship count as one of the leading global partnerships. Ever so often, in the call of Britain’s most famous Bard that we must seize the tide in the affairs of men, the world has sought the inspiration to act. And, so must we.
But, in defining the purpose of our partnership, we must turn to a great son of India, whose house in London I shall dedicate to the cause of social justice on Saturday. Dr. B. R. Ambedkar, whose 125th birth anniversary we are celebrating now, was not just an architect of India’s Constitution and our parliamentary democracy. He also stood for the upliftment of the weak, the oppressed and the excluded. And, he lifted us all to a higher cause in the service of humanity; to build a future of justice, equality, opportunity and dignity for all humans; and, peace among people.
That is the cause to which India and the United Kingdom have dedicated themselves today.
Thank you very much, thanks a lot.
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