Tata is an incredibly respected and valued company in the UK, and is very much a cherished part of the UK economy, says Greg Clark, minister for business, energy and industrial strategy in the new cabinet.
Clark says he is in talks with Tatas to find the best way forward for the company, which has announced plans to sell its UK steel assets to cut losses. On a visit to India, the first by a UK cabinet minister post the Brexit referendum, Clark spoke with ET on issues ranging from the Modi government’s reform agenda to ‘masala’ bonds.
Edited excerpts:
How do you see Brexit impacting the UK’s trade relations with India?
The decision that the British people made in the referendum was to be more global in our outlook and from a British point of view, to be global means to look at our long standing friends and partners, such as India. That is why I am the first cabinet minister from the new government to come to India. I was very keen to come on my very first month of being appointed as the business secretary, not to cement these relations because they are already very well in place, but to talk to the businesses that we have here about how we can strengthen the ties.
There is a sense of rising protectionism in your country and Brexit seems an example of this...
It is, in fact, completely the opposite. The vote on Brexit from both sides was of competing visions on how we can be more successful as a trading nation. Those that were for remaining in the EU felt that that focus should continue.
On Brexit side, the argument is that we should be taking more opportunities to trade with even more countries like India. There is a very tiny proportion in the UK that thinks that we should retrench and should put protectionist barriers. This is a moment for internationalism in the UK.
Are you planning to give any financial support to Tata Steel so it can keep its UK business?
Tatas are incredibly respected and valued in the UK. They have a wonderful reputation of working well with the workforce. What the previous, Cameron government said was that we work closely with Tatas to find the best way forward. We have been having discussions since I have been appointed.
What do you think of the reforms initiated by the Narendra Modi-led government?
Right from the beginning there was a energy in the Modi administration. Indian Prime Minister Modi’s visit to the UK was a tremendous success. At a time when we have got a new government in the UK, with a mandate to be increasingly global in our outlook, you have a PM here who is a reformer himself.
He is injecting pace and ambition with developments such as the ‘masala’ bonds. I think we have the biggest single government-backed corporate bond, it was oversubscribed and was very successful.
What are the changes you would want for more investment to come to India from the UK?
These are early days. We have a lot of strengths in terms of the insurance industry. Insurance supports the development of a growing economy both on the commercial side and the personal. We do have a lot to offer but it would involve discussions.
Clark says he is in talks with Tatas to find the best way forward for the company, which has announced plans to sell its UK steel assets to cut losses. On a visit to India, the first by a UK cabinet minister post the Brexit referendum, Clark spoke with ET on issues ranging from the Modi government’s reform agenda to ‘masala’ bonds.
Edited excerpts:
How do you see Brexit impacting the UK’s trade relations with India?
The decision that the British people made in the referendum was to be more global in our outlook and from a British point of view, to be global means to look at our long standing friends and partners, such as India. That is why I am the first cabinet minister from the new government to come to India. I was very keen to come on my very first month of being appointed as the business secretary, not to cement these relations because they are already very well in place, but to talk to the businesses that we have here about how we can strengthen the ties.
There is a sense of rising protectionism in your country and Brexit seems an example of this...
It is, in fact, completely the opposite. The vote on Brexit from both sides was of competing visions on how we can be more successful as a trading nation. Those that were for remaining in the EU felt that that focus should continue.
On Brexit side, the argument is that we should be taking more opportunities to trade with even more countries like India. There is a very tiny proportion in the UK that thinks that we should retrench and should put protectionist barriers. This is a moment for internationalism in the UK.
Are you planning to give any financial support to Tata Steel so it can keep its UK business?
Tatas are incredibly respected and valued in the UK. They have a wonderful reputation of working well with the workforce. What the previous, Cameron government said was that we work closely with Tatas to find the best way forward. We have been having discussions since I have been appointed.
What do you think of the reforms initiated by the Narendra Modi-led government?
Right from the beginning there was a energy in the Modi administration. Indian Prime Minister Modi’s visit to the UK was a tremendous success. At a time when we have got a new government in the UK, with a mandate to be increasingly global in our outlook, you have a PM here who is a reformer himself.
He is injecting pace and ambition with developments such as the ‘masala’ bonds. I think we have the biggest single government-backed corporate bond, it was oversubscribed and was very successful.
What are the changes you would want for more investment to come to India from the UK?
These are early days. We have a lot of strengths in terms of the insurance industry. Insurance supports the development of a growing economy both on the commercial side and the personal. We do have a lot to offer but it would involve discussions.
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