Centre for Policy Studies Budget Reaction and the need for focus on India (The Commentator)

The CPS has recently contributed two articles for the Commentator: “CPS Reaction to Budget”, by Tim Knox and Ryan Bourne, and “British firms need more belly to get involved with Delhi”, by Lewis Brown.

Tim and Ryan gave their reaction to a budget that was full of rhetoric but lacked substance.

“George Osborne proudly announced this Budget would be ‘unashamedly on the side of business and aspiration’. He set himself two aims: maintain fiscal credibility and foster the conditions for economic growth.

The former required sticking to very modest fiscal restraint. To achieve the latter, the Chancellor’s Budget needed to enhance the case for enterprise and wealth creation; to take bold attempts to reform the supply-side of the economy; and offer a vision for the future – with much lower government spending enabling targeted tax cuts for business. On this, it did not go anywhere near far enough.” Click here to read their analysis.

Lewis contributed a thought-provoking article on the UK’s relationship with India and how it could be of benefit to us in the long term:

“Indian growth has slowed in the last financial year and many are expressing disappointment with the projected figure for the 2012 financial year – 6.9 percent. Yes, that’s right; disappointing growth of 6.9 percent.

The President, Pratibha Patil, recently assured Parliament that the centre-left government dominated by her Indian National Congress will take the necessary measures to restore the growth rates of eight-nine percent enjoyed in recent years.

India represents “a missed opportunity” according to the Business Secretary Vince Cable, speaking last Thursday at the UK-India Business Council Annual Summit in Manchester. That the UK trades more with Sweden and Ireland than India betrays the optimism seen in the country by new Prime Minister David Cameron in July 2010 as he made the country his first state visit since taking office.

Then, the PM called for a ‘new special relationship’ with the emerging economic powerhouse. It is certainly these types of relationships that need to be forged by the Coalition government; for all the pre-election lip service paid by President Obama to our unique camaraderie with America, the increasingly certain prospect of four more years of the most anti-British President of recent times are likely to see the White House revert to looking to President Hollande and other ‘new’ relationships as it has focused on in its first administration. “Click here to view Lewis’s article.

Date Added: Thursday 22nd March 2012