Currying favour on the sub-continent

David Cameron has, this week, taken a large group of Government ministers and British businessmen on a visit to India in order to strengthen ties with the former British colony.  The visit has come in for criticism in light of the UK's current financial plight; but is this actually a shrewd move on the part of the British Prime Minister?

India, a former British colony, belongs to what is known as the 'BRIC' group of nations (Brazil, Russia, India and China); a group of nations identified as having rapidly-growing economies, which are likely to become big players on the world stage in the years to come.  With Cameron having oft lamented that the UK does more trade with Ireland than with all of the BRIC nations put together, it is not too hard to see why a large proportion of the Cabinet made their way there earlier this week.

Chancellor George Osborne bangs the gong to open trading at the Indian Stock Exchange

In order to build a nation on an economic par with the giants of the West, it is clear that the economy of said nation is not the only area that needs building.  In order to attract the businesses that will no doubt lead to the desired economic growth, a nation must first ensure that it has the infrastructure in place in order to ensure that it will be 'business as usual' for these companies; with their outposts being able to carry out the same work, be they in Birmingham or Beijing.

This whole visit could prove to be a very shrewd move on the part of the Coalition.  In order to bring its infrastructure up to standard, India will most likely need help in the form of trade deals and exports from more developed countries with the technology and knowledge to build efficient railways, power stations et. al.  If the UK can cement its position as the front-runner in the pack of countries competing to provide these services, then this could be a boon for the UK economy.

As Mr. Cameron said in his speech upon his arrival on Tuesday, India has the whole world beating a path to its door, with a large number of nations all wanting a piece of the cash-rich pie that India will be serving in the not too distant future.  If what it takes to seal the deal is shipping a large number of Cabinet ministers over to India to show the UK's commitment to forging stronger ties with India, then I am all for it.

The benefits would, most likely, not stop once the Indian infrastructure is up to the desired and required standard.  Once the Indian economy is growing and its biggest companies are looking to expand on an international basis, they will most likely be looking to branch out into Europe.  With this in mind, now is the idea time to plant the seeds, suggesting that the UK would be an excellent choice for any firm wishing to set up a base of operations in Europe.

In securing a deal between £500m and £700m to sell 57 Hawk trainer jets to the Indian Air Force, the UK now has the chance to prove to India that it is a reliable and worthwhile trading partner and to hopefully secure further deals to bring even more money into the Treasury.

However in making new friends, Mr. Cameron must be careful not to forget the old friends that have been so useful in the past.

In his warning to Pakistan regarding "exporting terrorism" yesterday, Mr. Cameron made quite the gaffe in suggesting that Pakistan was responsible for the deadly attacks Mumbai in 2008, as well as actively supporting the insurgency in Afghanistan.

Whilst such comments obviously gained a warm reception in India, they could be potentially damaging to a relationship which could prove to be key when the time comes for the UK to start pulling its troops out of Afghanistan.

Despite Mr. Cameron's dubious comments, the warm and positive reception that the delegation has received from its Indian hosts has to point towards this trip being a success.  As George Osborne has repeatedly stated, Britain is open for business again; and as with any reopening of any business, a good marketing campaign will be key to its success.