An action plan to forge new business and academic ties between the West Midlands and India was launched today by Minister for the Region Liam Byrne MP.
More than 30 Indian-owned businesses now operate in the region and the new “India and West Midlands Business Action Plan” sets out proposals to explore, improve and promote links with one of the world’s fastest growing economies.
Liam Byrne announced details of the Action Plan after a visit to the Black Country manufacturing firm Stokes Group Ltd, which was acquired by Mumbai-based Mahindra & Mahindra in 2006, a deal which safeguarded 285 jobs.
Wolverhampton MP Pat McFadden, the Minister of State for Employment Relations and Postal Affairs at the Department for Business, Enterprise and Regulatory Reform (BERR), also voiced his support for the Action Plan.
Mr McFadden founded the Wolverhampton India Project last year to promote trade, educational and sports links with India, in particular the Punjab region.
Two-way trade between the UK and India is today worth £8.7 billion per year and is growing by around 10 per cent annually – a growth which West Midlands businesses are keen to tap into.
The consultation document, prepared by regional development agency (RDA) Advantage West Midlands and UK Trade & Investment (UKTI), sets out plans to establish an India Co-ordination Group (ICG) later this autumn to unlock potential multi-million pound trade and investment opportunities between India and the region.
The ICG would co-ordinate the existing and successful work of UKTI, Advantage West Midlands, the region’s universities and the ethnic business community to improve awareness of the opportunities in India and ensure the region’s businesses are well placed to prosper from India’s growth.
Liam Byrne said: “India is a country transforming itself from a low income economy into a world economic superpower and it is clear from the Indian investment successes already in this region that the West Midlands can play a huge part in that transformation.
“The number of Indian companies in the West Midlands has doubled since 2006, and this year we saw the biggest deal of all: Tata’s acquisition of Jaguar Land Rover made it the largest foreign investor in the region, employing over 13,000 staff.
“I saw on my own trip to India earlier this year that these signs are only a glimmer of what could lie ahead.
“Indian business people, economists, entrepreneurs and journalists told me that they saw real potential in uniting Indian market scale and cost structure with innovation, enterprise and creativity that is so strong and dynamic in the West Midlands.
“The India and West Midlands Business Action Plan is a major step towards developing that relationship and is another key priority achieved since I became Minister for the West Midlands a year ago.”
Advantage West Midlands, which is responsible for showcasing the region to overseas business, is the first RDA in the country to publish an India Business Action Plan.
Chief Executive Mick Laverty said: “It is clear that the West Midlands is developing a very special business and academic relationship with our counterparts in India. It’s a region where some of the world’s best companies and entrepreneurs want to be.
“The competition to attract these companies is intense but we have a proven track record of attracting and retaining Indian business into the region – a track record that is pinpointing the West Midlands as a global centre where people and businesses choose to connect.
“We are proud of our achievements so far – but there is more to be done. The India Co-ordination Group will play a crucial role in ensuring trade and investment organisations, universities and the region’s vibrant ethnic business community are well placed to prosper from India’s growth.”
The Wolverhampton India Project founded by Mr McFadden is a collaboration between the city’s Chamber of Commerce, Wolverhampton Wanderers FC, the City Council, University, College and Ashram Housing Association.
Mr McFadden said: “The Wolverhampton India Project is a realisation that the cities and regions that will prosper from globalisation are those that build on their international links and explore these opportunities.”
Stokes Group Ltd was acquired by Mahindra & Mahindra in 2006. A subsequent £5.6 million investment in the firm by one of India’s automotive industry giants has since created a further 35 jobs. The investment was supported by a Selective Finance for Investment in England grant from Advantage West Midlands.
Ian Young, managing director of Stokes Group, said: “The Manhindra & Mahindra investment secured the future of the company’s three plants Walsall, Dudley and Brierley Hill.
“Mahindra were looking to move into the forging industry and were seeking a European partner to help with technology transfer and bring their Indian plants to world class standard.
“The £5.6 million investment in new high-tech precision machining facilities in September 2007 has enabled us to secure three valuable contracts making bearings components for a leading Japanese automotive supplier. We are also picking up valuable business from two forging groups that Mahindra has since acquired in Germany.”
Economic forecasts predict that India will overtake the UK and become the fifth largest economy in the world within the next 10 years, the third largest behind China and the USA by 2025 and the second largest economy after China by 2050.