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UK Secretary of State for Trade and Industry, Mr. Alan Johnson, called on the Finance Minister, Shri. P. Chidambaram, here today. World economic situation and matters of bilateral interests were discussed at the meeting. The Finance Minister pointed out that the spurt in world oil prices is totally unjustified; the oil producing nations are exploiting high growth rates in India and China. This is impoverishing developing countries and the wealth is being transferred from developing countries to the oil producing nations. He said that due to the rising world oil prices the hit has to be taken by either the fisc or the oil companies or the people. He said that all three are happening in India. Resources of developing nations are being diverted from the achievement of Millennium Development Goals (MDGs) to higher prices for oil. Shri Chidambaram felt that the developed nations and the G-8 countries need to bring moral pressure on the oil producing countries to see the long term damage to the world economy which this is leading to.
Mr. Johnson who is at present in India in connection with the ongoing Indo-UK Business Summit at New Delhi, talked of the need for providing impetus to the trade and economic relations between India and the UK. The Finance Minister felt that the real potential for economic and trade cooperation between India and UK needs to be fully realized.
During the meeting, both leaders discussed about the banking and financial sector policies in India. Shri Chidambaram informed the distinguished guest about the liberal policy being followed in these sectors in India. The Finance Minister felt that the policies in the banking and financial sectors allow ample opportunity to the foreign banks to grow in India both organically and inorganically. The Finance Minister also discussed with Mr. Johnson the policies relating to foreign direct investment in various sectors in India.
The meeting between the two leaders was followed by a meeting with the British business delegation accompanying Mr. Johnson. The delegation comprised representatives of banking, insurance, shipping line, tobacco, car and beer manufacturers. They represented organizations like Barclays, Standard Chartered Bank, Lloyd’s, Mersck, British American Tobacco, Rolls-Royce, Cobra Beer, BNP Paribas and Pinsent Masons etc.
The British Business delegation discussed with the Finance Minister among other things, developments in the banking and insurance sectors, issues relating to double taxation and investments in India.
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BSC/AD/GN-331/05
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