UK-India biz ties to get boost if Cong comes to power: Nath

London, April 26 (PTI) India's Commerce Minister Kamal
Nath has said that if the Congress is voted to power in the on
going general elections, the insurance, banking and retail
sectors would be further opened up and UK-India business links
will get a boost.

"In the current global economic crisis new opportunities
will be thrown up and it is for us to identify these," he told
The Sunday Times.

"British innovation and technology will have a huge
market in India. It is India's domestic-driven economic growth
that will throw up these opportunities," he said.

Kamal Nath said the new government will try to allow more
foreign investment in the banking, insurance and retail
sectors.

He said if the new government is Congress-led, it would
consider letting in international companies such as
supermarkets.

"Investment in the wholesale sector is already allowed.
And as we move on and the fear of the unknown gets less, this
(retailing) will be another area which we will be looking at,"
he said.

The insurance sector, seen as a big investment
opportunity for British companies, may also be opened up.

Foreign investors are allowed to own a 26 percent stake
in Indian insurance companies, but this limit may be almost
doubled, the report said.

"We are in the process of reforming the insurance sector.
This requires new legislation and the new parliament will be
addressing this issue," said Nath.

"We are going to look at an increase in quota and we
would like 49 per cent. This will have to be approved by
parliament and we hope to have the right alliance," he said.

The banking sector may also be a beneficiary, with a
renewed attempt to remove the 10 per cent cap on foreigners'
voting rights.

"In terms of banking it is not just about money, but also
about (related) specialised services from which India can
benefit," he said. The key to achieving reforms will be the
coalition alliances forged by the Congress if it is in a
position to form the government.

"Our greatest fear today in Europe is about non-tariff
barriers and protectionism. The UK has been at the forefront
of not having protectionist measures while the European Union
is showing strong signs of it," he said.

"We want to see the UK follow the same policies as it has
in the past. The economic crisis shouldn't create a tendency
towards protectionism. India and the UK always work together.
They should provide leadership on global economic issues."
PTI HSR