Business   

Rich nations seek SME investment as MNCs outsource

By Our Staff Reporter

BANGALORE NOV. 1. Visiting dignitaries at the inauguration of IT trade show, IT.Com, here on Saturday, were too busy seeking investments into their own SME markets, to pay any attention to the catch-line `Power of Bangalore, make it yours'.

The sense of urgency came from loss of thousands of jobs as global companies shifted them to cheaper locations in India, Southeast Asia and South Africa. For example, global bank HSBC, with 50,000 employees in the U.K., decided to shift 4000 back office jobs to India and Malaysia. Seeking investments into the SME sector then was a way of generating more local jobs.

After wishing Karnataka on its birthday today, Britain's Deputy High Commissioner, Stuart Innes, said the U.K. was an ideal investment destination for Indian companies seeking a foothold in Europe. "'With a 20 billion software and computer services market', the U.K. is one of the strongest markets in Europe, he said.

Stephen Lillie, Director, Trade and Investments, British High Commission, Delhi, said in a release, that while the top 20 companies accounted for the much of the market, at the other end were 95,000 companies employing more than 900,000 people.

Last year, the U.K. Trade and Investment, formerly Invest U.K., recorded 700 investment projects from overseas, generating 34,000 jobs in the U.K, the release said.

On Friday, John Rutherford, Director General of Investment Promotion at Invest Hong Kong, a government body seeking inward investment, said so far Indian companies had sought to invest in Hong Kong, `on their own steam'.

Now, Invest HK would "do the hand holding effectively", he told reporters. Hong Kong's proximity to mainland China provided `a wealth of opportunities' to technology companies he said. A free trade deal, Closer Economic Partnership Arrangement, signed between China and Hong Kong makes it easier for Indian companies, especially SMEs to expand business in Hong Kong and China, he said.

The Frankfurt Economic Development GMBH, FEDC, Germany, has sent a delegation that will meet Indian companies over an extended period, FEDC officials told reporters yesterday. The delegation was also participating in IT.Com.

Hartmut Schwesinger, President, FEDC, said three Indian companies had set up their operations in Frankfurt — Tata Elxsi, Sasken Communication Technologies and S2 Engineering Design Solutions.

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• Exports spurt in Sept. but trade gap also widens
• Rich nations seek SME investment as MNCs outsource
• Credit Policy: Will Reddy spring a surprise?
• Orchid's Q2 profit surges
• City Union Bank net up
• Forex reserves surge ahead
• Gem & jewellery exports up
• Nod for merger of M&M subsidiaries

Copyright © 2003, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu