Scotland 'will lose out to rivals' unless it capitalises on links with India

AN ASIAN Scots businessman has called for a formal business and economic growth strategy with India to ensure Scotland capitalises on Prime Minister David Cameron's "special relationship".

Arvind Salwan, managing director of New Media Corp, is launching the India Scotland Business Collaboration (ISBC) as a public-private sector partnership to help accelerate investment between the two countries.

Salwan, a second-generation Asian Scot, said: "Unless a clear and ambitious strategy is adopted, our companies will continue to lose out on opportunities that other cities within the UK will benefit from, particularly in the wake of David Cameron's visit to India in July when he stressed that he wanted to form a 'special relationship' with India."

India's economy has been resilient to the global downturn and it is one of the fastest expanding in the world, with a significant emerging middle class who want consumer goods and opportunities to study, travel and work in Europe. GDP is expected to grow by 8.5 per cent next year.

Salwan said the ISBC will aim to build more of a stake in the UK's 18th largest export market.

The retail market is currently the most attractive prize in a country with a growing consumer class, he said.

"This sector is worth around 227 billion and is forecast to grow to 352bn by 2014," said Salwan. "Yet as much as 90 per cent of that trade is unorganised and the potential opportunities for companies and retailers are vast."

In March the Scottish Government published its India Plan, which stated that a strategic approach to engagement is the key to unlocking the huge potential economic benefits from Scotland working closer and doing more business with India.

Ten Indian companies have invested 700 million in Scotland during the last five years, and employ close to 2,500 people.

"We must get better at making India aware that Scotland is open, ready and hungry to do business," said Salwan.

"Later this week, we will see the First Minister and the leader of Glasgow City Council participate in the closing ceremony of the Commonwealth Games in Delhi - so will the rest of the world. Let us view this as an opening ceremony (into India] for Scotland's businesses."

A recent Scottish Enterprise regional briefing stated that Scotland is an ideal partner for India given its strength and expertise in key industries.