Osborne plans to unveil 1 bn pound in commercial deals with India

LONDON: Britain's Chancellor of Exchequer George Osborne plans to unveil 1 billion pounds worth of commercial deals with India on the first day of trade talks between the two countries here today.

Finance Minister Pranab Mukherjee will have extensive talks with Osborne today.

The talks follow the visit of a trade delegation to India last year, which was led by British Prime Minister David Cameron.

In a statement before today's meeting, the Chancellor of the Exchequer said: "Britain is now making the largest foreign investment in India. It shows that British companies are competing with the best in the world, despite some sceptical voices, and is good for growth in Britain."

The deals include approval for BP to invest 4.4 billion pounds in India's Reliance Industries, which will be the biggest single foreign investment in the sub-continent.

According to a report in the Daily Telegraph, BP's investment, which is being made in Reliance's oil and gas blocks, could grow to be worth as much as USD 20 billion (12.2 billion pounds), according to the Treasury.

The Treasury says trade between the two countries has grown by 20 per cent since Cameron's trip to India.

UK's Coalition government has said it is determined to boost trade with India, China and Brazil as a means of pulling the country out of a recession.