Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 220-228)

UK TRADE & INVESTMENT

14 FEBRUARY 2006

  Q220  Chairman: You would not dissent from the view that it is a good thing to do, certainly.

  Mr Ahmad: It is something on which we are working on behalf of, if you like, the student community and the business community.

  Chairman: I will let Rob ask the questions and then come back.

  Q221  Rob Marris: I would like to turn it round. When we are talking about this £10 million, that, on a back of the envelope calculation, is going to add 1,000 students to the 18,000 students we get every year: very welcome but it is 6%. What I think would come within your remit is what UKTI is doing to assist those organisations which export educational services to India—and I am thinking, particularly, in terms of language training and so on, where we have companies, and there is one in Cambridge—training tens of thousands of people every year. That would seem to be more within your remit. Are you doing anything to increase that export market?

  Mr Ahmad: We most certainly are. The figure that I have is that some 40 UK education companies were assisted into the marketplace through the UKTI network over the last three years, and 30 specifically commissioned research projects were undertaken on behalf of that very sector.

  Q222  Rob Marris: To explore the market in India?

  Mr Ahmad: Exactly.

  Rob Marris: Thank you very much.

  Chairman: I think this is an area we will explore a little more with the British Council and others as well. This Committee regards this as a very important area where we could be doing a lot more. Although we did hear from the businesses we met at the High Commission a couple of weeks ago that one of the chief issues for Australia was the weather, and I do not think we can change that!

  Q223  Mr Clapham: My question relates to climate change and some of the projects that are going on. You referred earlier to the bio-diesel project. Is there any bio-fuel project, whereby we are encouraging, for example, the burning of crops with coal-generated electricity, or, should I say, in the units that provide for generated electricity. Is Defra involved? Are there British companies involved in these projects?

  Mr Ahmad: I will have to answer that question in rather more general terms because I do not have any information on that very specific example that you have cited. Defra certainly has a very active engagement programme with India. The Secretary of State, Margaret Beckett, has visited India and will continue to do so, because India is regarded as a very key player in the whole debate on climate change. We have seen a number of UK consultants and consultancy firms engaged in this whole area of environmental impact and environmental protection as a commercial offering. That is certainly alive and well. In this context I should also mention the Office of Science and Technology who are key partners with India, again, part of that whole panoply of strategic initiatives we have on India. That is also something that addresses, if you like, the subject matter you raised.

  Q224  Chairman: To both China and India environmental exports are a big opportunity, are they not, for this country?

  Mr Ahmad: Very much so, yes.

  Q225  Chairman: We are virtually at an end now, you will be pleased to hear, I am sure. Go into relaxed mode now, for the last couple of questions, and just tell me: in Britain do you think perceptions of India are accurate? Do we see India more as a source just of people who steal our jobs from call centres, which you and I know is a tiny part of the Indian economy. Do we have an accurate view of India?

  Mr Ahmad: Those who have dealt with India, who know India well and who have engaged regularly with India, will have seen the transformation. What never ceases to surprise me is the dynamism of what is happening in India; perhaps not at the same visible pace as in China, but it is happening. One sees that in the way of people's lifestyles and the whole travel pattern and the way that has changed, with, for example, the recent air services agreement. I think that is something that is missed by British industry or firms who are not regular engagers in the marketplace. But I think it would be true to say, if one looked at the SME market, for example, that their preoccupation has been with what I would call the near markets and easier markets in Europe and North America, and, increasingly, we see a need to fill that knowledge gap by doing the sorts of things we have been doing on information on India.

  Q226  Chairman: We have a gentle complaint from the people who are over on the JETCO visit, saying, "When we come here, we never meet chief executives. We always meet consultants and advisers, we never meet the top people. Why do they not want to meet us?" Do you think that reflects a lack of interest or do you think the huge success you get for your outward missions to India suggests that CEOs are fully engaged?

  Mr Ahmad: I think it depends on what expectations people come with to the UK for some of these visits. The delegation that went with the Prime Minister to India was straight off the A-list. The board membership of the IBPN has a healthy smattering of very recognisable larger companies. It really does vary from one sector to another. It is highly unlikely that in what is sometimes a very short window of opportunity there will be parallel level exchanges, particularly on seminar panels. I think this is where the difficulty arises: if there is a particular discussion forum, the expectation sometimes from high level Indian visitors is that there will be an equivalent chief executive sitting on the other side of the table, when it is more likely that UK plcs put forward their country expert. But, where a one-to-one meeting is sought, it is very unusual for that requirement not to be met.

  Q227  Chairman: One last question from me—and I always like asking people this. We are off to India in a week's time and we are meeting a lot of people in the Government and the commercial organisations there. What is the one message you would like us to take?

  Mr Ahmad: To continue the pace of reform and liberalisation, recognising that there is a political environment that they have to manage. Therein lies, if you like, India's fulfilment of a promise that it itself has and external commentators have said is their potential.

  Q228  Chairman: What one wish would you have about your own organisation?

  Mr Ahmad: If I could change what I do, I would like to be able to have a bigger delivery capability to the mid-sized corporate marketplace in the UK. We have a very well developed SME service delivery offering. The big companies know how to use us very effectively. There is a gap which we are beginning to address now with some thinking and money, but it probably needs more than my exhortation.

  Chairman: Thank you very much indeed. We are very grateful.





 
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