FICCI CEO delegation to UK to intensify bilateral relations

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SME Times News Bureau | 09 Jun, 2009
FICCI is taking a 17 member high level multi-sectoral CEO delegation to UK led by its President Harsh Pati Singhania from 9-10 June.

The delegation includes CEOs from sectors like Pharmaceuticals, Mining, Cement, FMCG, Energy, Information Technology, Financial Services, Petrochemicals, Textiles, Tyre, Paper, Renewable Energy and Hospitality.

The delegation would interact and exchange views with a number of important bodies in UK like UKIBC (UK India Business Council), International Institute of Strategic Studies, Commonwealth Business Council, APPG (Indo-British All Party Parliamentary Group), GOPIO etc. in order to strengthen the bilateral trade and investment relations and also to broad-base and intensify the engagement between India and UK.

Amongst the number of economic issues that would be taken up with UK, FICCI delegation would emphasise the need for Totalisation Agreement between India and UK with Rt Hon. Lord Mervyn Davies, Trade Minister of UK.

India has already proposed such an agreement to UK but has not received any favourable response, said FICCI.

India needs to have bilateral social security agreement (totalization agreement) with UK to protect the interest of large number of Indian professionals working in UK by securing exemption from social security contributions in case of short term contracts.

Such agreement will make Indian service suppliers more competitive as the exemption from social security contributions would reduce their cost of supply of services, FICCI pointed out.

Indian professionals are required to pay nearly 30-40% of their earnings to social security schemes without any commensurate benefits, observed FICCI. India exports around $3.5 billion worth of services to UK which includes services like transportation, health, IT and other business services.

In addition, the FICCI delegation would also raise stringent conditions introduced by UK in the Visa rules from April 2009 onwards. The new UK Immigration Rules covering highly skilled migrant workers have raised the academic and financial requirements of two categories in Tier 1 of the points-based system for foreign workers.

Also, the resident labour market test has been strengthened to ensure that skilled jobs are advertised within the United Kingdom before they can be offered to migrant workers. FICCI would also push for fast track registration of Indian medical personal in UK. FICCI would urge the UK Government to have Mutual Recognition Agreement (MRA) with India in health services.

Other issues of concern to Indian business like stringent standards for agriculture and food items in UK would also be taken up by the delegation. FICCI said that in general the UK standards are higher than the EU standards and UK does not accept Indian exports complying with EU standards if they are not in compliance with UK standards.

FICCI said that lack of harmonisation of standards within EU discourages Indian exporters from exploiting economies of scale. FICCI would also take up the alleged discriminatory practices followed by certain European countries with regard to Indian exports in standards.

FICCI delegation would be interacting in UK on a wide range of issues like financial regulation, mergers & acquisitions, emerging cities of India, the new global order, Indian Government’s priorities for reform and growth etc.

Members of the FICCI delegation who would be speaking in various fora in UK are Harsh Pati Singhania, President, FICCI; Harsh C Mariwala, Vice President, FICCI; Shiv Nadar, Founder, HCL and Chairman & CSO, HCL Technologies Ltd.; Yogendra K Modi, Chairman, Great Eastern Energy Corporation; Dr Amit Mitra, Secretary General, FICCI; Jyotsna Suri, Chairperson and Managing Director, Bharat Hotels Ltd.; Mukul Kasliwal, Chairman, MW Corp. Ltd. and Dr Mukesh Aghi, Chairman & CEO, Steria India.

Harsh Pati Singhania, President, FICCI would be speaking on range of issues like financial regulations in a Roundtable with UKIBC, on ‘Is a New Global Order Emerging? Potential Role of India’ in a FICCI-GOPIO conference, ‘Mergers & Acquisitions’ in a Roundtable with Commonwealth Business Council.

Shiv Nadar of HCL, which is the second largest Indian employer in UK, will be speaking on Mergers & Acquisitions from a global perspective. HCL Technologies acquired Apollo Contact Center, a North Ireland-based outsourced call center supplier, from British Telecom a few years back.

Harsh Mariwala, Vice President, FICCI and CMD, Marico Industries Ltd., a brand leader in India and having a strong presence in Middle East, Egypt and South Africa would be speaking on ‘India’s New Government: Key Pointers for Economic Reform, Growth and Business Opportunities’.

Yogendra Kr. Modi, would share his experience of engagement and interactions in London Financial Market from where his company has raised $400 million. Jyotsna Suri, would be speaking on her experience of acquisition of hotels in Indian market.

FICCI observed that although UK remains the top destination of India’s exports in EU, there is need to enhance these engagements. Currently, India has a share of only 1.2% in UK’s imports and UK has a share of just 2% in our imports.