British Prime Minister David Cameron said British and Indian companies will announce deals worth a total of £9.0 billion (12.7 billion euros, $13.7 billion) during his Indian counterpart Narendra Modi’s visit to Britain.
Cameron made the announcement at a joint press conference with Modi at Downing Street, saying that new rupee-denominated bonds would also allow Indian companies to issue debt in London.
“During this visit, British and Indian companies are announcing new collaborations together worth more than £9 billion,” Cameron said.
“We want to forge a more ambitious, modern partnership,” he added, noting that India has more investments in Britain than in the rest of the European Union combined.
Cameron unveiled plans for £1.0 billion of rupee-denominated bonds to be traded in London, saying that he wanted Britain to become India’s “number one partner” for raising finance.
Asked about an upcoming referendum on Britain’s European Union membership, Modi said: “As far as India is concerned, if there is an entry point to the European Union, that is the UK”.
On Friday, Modi meets Queen Elizabeth II and addresses a huge rally at Wembley Stadium where 60,000 British Indians are expected.
The trip will be the first time an Indian prime minister visits Britain in nearly 10 years and is expected to yield billions of dollars (euros) worth of deals, including India buying more BAE Systems Hawk trainer jets for its armed forces.
The red-carpet reception from Cameron’s government will be a stark reversal of fortune for Modi, who had effectively been banned from Britain until three years ago over anti-Muslim riots which killed over 1,000 people in 2002 in Gujarat, when he was chief minister of the state.
The 65-year-old on Friday will appear at a huge rally at Wembley Stadium, which will include a free concert and a huge Diwali fireworks display.
“This isn’t just a historic visit. It’s a historic opportunity,” Cameron said ahead of the visit.
“It’s an opportunity for two countries, tied by history, people and values, to work together to overcome the biggest challenges of our age.”
India is the world’s ninth-largest economy and, at 7.4 percent, has the fastest growth rate in the G20.
Former colonial power Britain is the fifth-largest world economy. The government is pushing hard to increase overseas trade as it tries to shrink its large deficit in the wake of the 2008 financial crisis.
Cameron promised in 2010 to double Britain’s trade with India by this year. He has visited the country three times, but the trade figure has barely increased.
Gareth Price of London-based foreign affairs think-tank Chatham House said Britain was lower down India’s pecking order than other nations such as Japan or Germany.
“A lot of countries are wooing India with deeper pockets and without the historic baggage,” he told AFP.
Price added that India’s “number one” ask from Britain was usually more visas for Indian nationals.
But he stressed this was “problematic” for Cameron, who has been struggling to reduce immigration since taking power five years ago.
Downing Street said the visit would include announcements on “masala bonds” — rupee-denominated bonds which would allow Indian companies to issue debt in London.
