Commonwealth Greater Birmingham
Commonwealth Chamber of Commerce
Contact: Jamila Davis T: 0121 607 1826
Commonwealth Chamber Patron
UK lagging behind with exports to India
Britain’s small to medium enterprises (SMEs) are failing to tap into one of the world’s most important emerging markets – India. That’s the view of Keith Stokes-Smith,
president of the newly formed Greater Birmingham Commonwealth Chamber of Commerce (GBCCC), who said that SMEs were missing out on a golden opportunity. He said: “India is a nation which regularly and
rightly receives positive reports in relation to trade potential and a country which, I am sure, as the shift in trade moves east of Europe, will feature significantly over the next few decades. “Yet, ironically, the UK lags behind a number
of countries when it comes to recognising India’s potential. “Germany, the USA and Japan already export
more to India by far than the UK does, despite India being a Commonwealth member and the advantages that come with that when it comes to trade.” He said that India had recorded huge
increases in gross domestic product (GDP) in recent years – growth for this year is expected to be 7.2 per cent, and 7.5 per cent in 2019, compared to the UK’s forecast of 1.3 and 1.1 per cent for the same period. He added that India was very similar to China
in terms of being an emerging market, not least because it possessed a middle class that had enormous growth potential. This potential, he added, was backed up by a
recent report by Ernst and Young which said: “Large populations and rapid economic growth mean that China and India will become powerhouses of middle class consumerism over the next two decades.” Despite this, SMEs were failing to take
advantage of the growing Indian market, even though there were dozens of markets which were ripe for engagement, including auto components, aviation, biotech, mining, railways, defence, construction, electronics, information technology (IT), textiles, roads, media and tourism. Mr Stokes-Smith said: “There can be no
doubt that India is a land of opportunity and there cannot be any doubt that we in the UK are not capturing our share of it and fulfilling our full trade potential. “British goods and services are sought after, particularly if there is a cost effective servicing capability to hand. “The UK is the fourth largest inward investor
in India with an investment of $24.6bn. I think that shows real confidence in India as a place to do business with. “And interestingly, India is the third largest
investor in the UK. In fact, the UK attracts more Indian investment than the rest of the EU put
Bi-lateral opportunities: Keith Stokes-Smith (left) with Muhammad Zulqar Nain
‘There can be no doubt that India is a land of opportunity and there cannot be any doubt that we in the UK are not capturing our share of it and fulfilling our full trade potential’
together. I think that also shows real confidence in the UK economy, Brexit or no Brexit.” Mr Stokes-Smith said that to build on this,
the Indian government had launched its 'Access India Programme' (AIP), specifically
aimed at UK SMEs. AIP is designed to give SMEs an
understanding of how the Indian economy works, and what incentives might be available. It also deals with aspects of Indian business culture, the tax system and legal requirements. It also includes advice on how to enter the
market, and what networking opportunities are available. There is also a mentoring programme, which
involves UK businesses already operating in India, including BAE Systems, Rolls Royce and JCB. Mr Stokes-Smith said: “SMEs have to qualify
to benefit from the programme, and it does have a bias towards creating jobs and wealth in India - but it can still be a win- win for many SMEs. SMEs who are minded to export or further export should certainly look to this land of opportunity and take full advantage of what the programme can offer.”
The Consulate of India in Birmingham will be hosting a free seminar about bi-lateral trade opportunities to Chamber members on 21 September at Chamber House, Harborne Road.
For further details see
www.greaterbirminghamchambers.com
Bartering is key to
Bangladesh trade British companies should forget about price, and think more about old-fashioned bartering, when it comes to doing trade with poorer nations. Keith Stokes-Smith, president of the Greater Birmingham Commonwealth Chamber of Commerce (GBCCC), said that countries such as Bangladesh were desperate to acquire high-tech goods and services from developed countries, but were keen to explore the potential of bi- lateral trading, rather than have to part with hard cash.
‘Bangladesh has a lot to offer in bi-lateral trade’
He said: "Bangladesh has a lot to offer in bi-
lateral trade and it would be most disappointing to see Birmingham lose out on these opportunities. “Bangladesh is one of seven emerging
economies with a potential $14.5bn of export opportunities between them and the UK are minnows in most sectors when looking at meeting their needs.” Mr Stokes-Smith was speaking at a GBCCC
event promoting trade links with Bangladesh. The event, the second in a series about
trading opportunities with Commonwealth countries, heard from Birmingham-based Muhammad Zulqar Nain, assistant high commissioner for Bangladesh. The country is known for being the world’s
second largest clothing exporter, and is building on its export success by investing in its infrastructure. Major projects such as the Dhaka Chittagong
highway, Padma bridge and the Bangabandhu satellite have led to the country looking overseas for engineering services and machinery. Other opportunities for bi-lateral trade exist in
for pharmaceuticals, whose sector currently meets 97 per cent of domestic demand in Bangladesh - however the country is looking for international solutions for ‘high tech’ medicines in exchange for the ‘low tech’, low cost medicines.
September 2018 CHAMBERLINK 33
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