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UK ministers seek deals on first India visit since Modi's election

Sun, 06th Jul 2014 23:01

* Ministerial visit first since Indian election

* UK and others jostling for trade, deals in India

* Focus likely to be on defence and infrastructure

By Andrew Osborn

LONDON, July 7 (Reuters) - Two of Britain's most seniorgovernment ministers begin a two-day visit to India on Mondayhoping to open up opportunities in the defence andinfrastructure sectors, the first such trip since Prime MinisterNarendra Modi's May election win.

The arrival of George Osborne, Britain's finance minister,and Foreign Secretary William Hague, is the latest in a seriesof high-profile visits by foreign governments keen to buildstrong relations with Modi and to position themselves for apossible further opening up of India's defence industry.

Britain's economy, the world's sixth largest, is expandingat one of the fastest rates in the Western world. But thecountry is weighed down by large public debts and Prime MinisterDavid Cameron has said it needs to forge closer links withdeveloping economies such as India's to secure its future.

London is hoping that a stalled deal for India to buy 126French Rafale fighter jets may yet collapse, opening the door toa potentially new arrangement involving the Eurofighter jet,which is partly built in Britain.

It also wants British firms to help India develop new citiesand districts along a 1,000 km (600 mile) corridor betweenMumbai and Bangalore.

"I believe a stronger relationship with Britain will helpdeliver the new economic policy of the Indian Government,"Osborne will say in a speech during the visit, according toadvance extracts released by Britain's Foreign Office.

"Prime Minister Modi is seeking more investment in India'seconomy - and I want British companies to provide it, and theBritish Government to support it."

The two men, both members of Cameron's ruling Conservativeparty, are expected to visit Mumbai and Delhi, and to holdmeetings with Modi as well as with India's finance and foreignministers and with business leaders.

Osborne is expected to use the trip to announce research anddevelopment investment in Britain by car giant Mahindra andpharmaceutical company Cipla to the tune of 20 million pounds($34.03 million) and up to 100 million pounds ($170.16million)respectively.

Hague will say Britain is increasing the amount of moneyavailable for Indian student scholarships and wants to furtherdevelop educational links. A long-festering tax disputeinvolving Vodafone is also expected to be on the agenda.

The visit could have an impact on Britain's political scene.Cameron is up for re-election next year and his Conservativeparty is anxious to woo the country's Indian diaspora, whichHague before his trip estimated was 1.5 million-strong.

In 2013, Britain exported goods and services worth 7.7billion pounds ($13.10 billion) to India and imported goods andservices from India worth 8.8 billion pounds ($14.97 billion).

Britain, India's former colonial power, is the third biggestinvestor after Singapore and Mauritius.($1 = 0.5877 British Pounds) (Editing by Louise Heavens)

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