G 20 Current Affairs - 2019
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The report ‘India’s Sterling Assets: Britain Meets India’ by the Confederation of British Industry (CBI) has noted that UK is the largest foreign western investor in India.
UK investments in India:
- The total foreign direct investment (FDI) which flowed into India from all channels from the UK between 2000-2018 is estimated at $50.57 billion.
- Of $50.57 billion the UK has directly invested $26.09bn in India. There was an increase in investments by $847 million between 2017 and 2018 representing 7 per cent of all FDI into India.
- Almost two fifths, i.e. 38% of British companies made new investments in India in 2017.
- UK is the fourth largest investor in India. UK remains the largest investor into India outside of South East Asia and Africa.
- Japan narrowly overtook the UK and Japan is the largest G20 investor in India.
- UK is substantially ahead of Germany and France, who contribute 3% and 2% in FDI respectively.
Creating Jobs in India:
- The investments of UK resulted in the creation of around 52,000 new private sector jobs from 2016 to 2018 which was a 14% rise on the previous 18 months.
- British companies have created 422,524 jobs in India since 2000 and around 6% of all employees in British businesses in India are women, with 5% of managers in these firms being female.
Why India is preferred destination?
British firms are attracted to India due to its huge and growing market with an expanding middle class, the easy availability of talented workers and the current Government’s ease of doing business policies and reforms, such as the introduction of the Goods and Services Tax. Now India is the 6th largest economy in the world and is the most improved country on the World Bank Ease of Doing Business (EODB) Index. This makes India an attractive investment destination.
The economic relationship between the United Kingdom and India is blossoming. The economic ties between the two countries are going from strength to strength. India would be a vital trading partner as the UK charts a new future outside the EU. This makes a win-win situation for both the countries.
The Union Ministry of Finance has appointed Shaktikanta Das, Former Secretary, Department of Economic Affairs (DEA) as India’s G 20 Sherpa till December 31, 2018 for Development Track of G20.
Sherpa is personal representative of leaders participating at G-20 summit and are responsible for thrashing out details before meeting of the leaders.
There are two tracks in G 20-Development Track and Finance Track. Finance Track is managed by Secretary (Economic Affairs) as India’s Deputy to G-20 and Development Track is coordinated by Sherpa. The DEA, Ministry of Finance provides necessary support to the Sherpa.
Former NITI Aayog vice-chairman had recommended to Prime Minister Narendra Modi to appoint full-time Sherpa for G20 talks as India’s role is expanding in global arena. Panagariya was India’s Sherpa for G20 talks in September 2015. As per earlier norms, deputy chairman of erstwhile Planning Commission used to be Sherpa for G20 talks.
Sherpa is personal representative of leader of member country at international Summit meeting such as G8, G20 or Nuclear Security Summit. They are mostly career diplomats or senior government officials appointed by leaders of their countries. The term has been derived from Nepalese Sherpa people, who serve as guides for mountaineers in Himalayas.
The Sherpa is mainly engaged in planning, implementation and negotiation tasks through Summit. They coordinate agenda, seek consensus at highest political levels and participate in series of pre-Summit consultations to help negotiate their leaders’ positions.