UK falling behind rivals in Indian trade partnership table

THE UK is slipping down the league table of trading partners with fast-growing India, as other countries have made significant advances to bolster exports into that market.

Though UK trade with the former British colony has grown in absolute terms and stands at 11.5 billion, other countries have accelerated their exports into India at a faster pace. As recently as 2005, the UK was India's fifth largest trading partner; it has now slipped to 18th position.

Kevin McCole, chief operating officer of the UK-India Business Council, said one of the reasons for this was that countries such as US and China have stepped up their efforts in recent years. India's growing energy needs have also given a boost to oil exporting countries.

However, there are other factors as well.

"A challenge for the UK in growing its exports to India is that areas where we are traditionally strong - retail, financial, legal and professional services - are areas where trade and investment barriers exist," McCole said.

"In the plus column for the UK is the fact that in addition to traditional trading, there are significant investment flows between the UK and India."

Several Scottish companies such as Clyde Blowers, Cairn Energy and Petrofac already have operations in India. However, most tend to be larger organisations with an international spread. In an effort to help smaller firms looking to boost exports, the Confederation of Indian Industry is holding a seminar in Edinburgh tomorrow. The event is the first of its kind in Scotland, and will include input from chief executives of leading Indian companies based in the UK.