Written - Trade, Inward Investment and Creative Industries Mission to India 25-30 November 2007

Last week, I led a trade mission to India, the first Assembly Ministerial mission there and the first ever to embrace all of the activities of International Business Wales in respect of inward investment, trade and the creative industries. This intensive visit, that involved my visiting Delhi and Mumbai, was made possible by the opportunity that the market presents, the willingness of Indian Ministers and companies to engage with Wales, the work of the British High Commission in Delhi and Mumbai and the activities of International Business Wales.

During the week, I hosted a dinner for existing and potential inward investors, met six companies on a one-to-one basis, three of which have already invested in Wales, addressed the Federation of Indian Chambers of Commerce and Industry and the British Business Group, took part in a CNBC televised discussion about India going global and attended five receptions, two of which were with the film industry in India. This mix of opportunity enabled me to address wide-ranging and influential audiences, CNBC having audience figures of 25 million.

I also took the opportunity to establish links with the Indian Minister for Industry and the Indian Secretary for Tourism, both meetings providing opportunity to develop commercial, cultural and political links.

This mission represented the growing significance of the Indian economy globally which has been growing at over 8% for the last three years. This has been boosted by double-digit growth in services and manufacturing which contribute 53% and 29% of GDP respectively. The United Kingdom is the second largest investor in India with the top sectors of opportunity being in financial and business services, infrastructure, pharmaceuticals and healthcare, ICT and telecommunications, automotive, aerospace and education. There is every possibility that Arup, one of the trade mission companies, will play a part in a major infrastructure project in India.

In inward investment terms, Indian companies are cash rich with strong overseas stock market support. Many are interested in mergers and acquisitions, focussing first on the United States of America and then United Kingdom and the European Union. India’s investment in the UK rose dramatically last year, and India is now in the list of top ten investors by value. Recent high profile deals include those by Tata/Corus and UB/Whyte & Mackay whisky. Tata are also currently looking at Landrover/Jaguar. For these and other reasons, India is a priority market for Wales.

I was proud to lead this delegation of nineteen Welsh companies and Further and Higher Education College representatives, each one of them eager to do business in India. Initial reports from the trade missioners have been very positive in sectors as diverse as biotechnology and pharmaceuticals, construction, further education, civil engineering and the creative industries. Companies from Wales received a very positive response with a number being asked to quote for new business, an initial order of £150,000 secured by EPS Steels with significant opportunity for more. A number of other companies are also close to securing significant contracts.

The mission was hugely successful in that it established and renewed key contacts with Indian companies already located in Wales and those showing interest in investing here. I was able to meet Tata Steel, Wockhardt and Bilcare, companies that have already invested in Wales and I was able to meet other companies that are on the cusp of investing in Europe. I am confident that, in the months ahead, there will be further investment in Wales by companies from India. It was inconceivable that I should visit India and not meet with Tata Steel, one of the foremost companies in Wales. I held constructive discussions with the Group’s Chief Finance Officer and Executive Director and we have agreed to work together in a number of areas including opportunities for links with academia, cutting edge technology and technology transfer. This is a Group that offers significant promise for Wales in a number of areas and I am determined that we will capitalise on all of them.  

We have had focus on India for a number of years but there is clearly a need to further develop and pursue growth opportunities there. My visit was part of that process. Wales, through International Business Wales, is increasing its presence in India with an enhanced office in Bangalore and a new office in Mumbai expected to be opened in January next year. The team on the ground will increase from its current one representative in Bangalore to a complement of six people, three in each office. We are also planning another trade mission for 2008/9 such was the success of this latest visit. I am also pleased to announce that the influential Federation of Indian Chambers of Commerce and Industry will join us here in Wales in 2009 for an India in Wales Week, a further demonstration of the depth of the relationship that we have been able to establish in this important market.

In terms of the Higher Education, there is no doubt that we can now establish key links between the sector in Wales and companies in India.   Most of the companies I spoke with were enthusiastic about pursuing research and development projects with Welsh Universities.  

The opportunities are now there, the challenge for us is to use them and make them work for the Welsh economy.