UK's efforts to forge closer ties with India were failing

LONDON: The Hinduja brothers have cautioned British Prime Minister David Cameron that his efforts to forge closer ties with booming India were failing owing to rising taxes and lengthy visa delays for Indians.

"Rising taxes and lengthy visa delays for Indians were deterring investment in Britain," Gopichand and Srichand Hinduja, chairman and co-chairman of Hinduja group, told the Times.

"Something is wrong with the model," Gopichand Hinduja said.

"His (Cameron's) visits, his signals are good but they don't percolate down the line," he said.

"Britain can play an important role as a vehicle for Indian investment in Europe... but with his heavy taxes and the difficulties which are being put for anybody coming from overseas to buy property ... (they are) harming progress."

"Do you see how much difficulty they are creating for visas?"

The remarks, from one of the world's most powerful Indian businessmen, come just days before George Osborne is due in Delhi for talks with Pranab Mukherjee, the Finance Minister, on the trade relationship which has failed to grow despite being a focus of Cameron's Government, the report said.

Nearly two years after Cameron and Osborne led what No 10 called "the biggest trade mission in history" to India, Britain has slipped to 16th place in a league table of the nation's trade partners, behind Belgium.

In recent months, British companies have also faced a string of problems in India. In a snub to BAE Systems, a $ 12 billion contract to sell fighter jets to the Indian air force went to Rafale of France.

The Hinduja brothers control one of India's biggest industrial conglomerates that includes Gulf Oil, Ashok Leyland - the lorrymaker that they bought from British Leyland in 1987 - and one of India's top private banks, IndusInd.

Criticising UK Government's current approach, Gopichand Hinduja questioned the quality of advice being offered to Cameron on India trade matters.

"The Prime Minister has to take some advice from the overseas Indians who understand and see what is lacking. There couldn't be any better tips and suggestions."