'Restrictions on FDI affects investment from Britain'

Bangalore, Oct 27 (UNI) Restrictions on Foreign Direct Investment (FDI) by the Indian Government have arrested the flow of investment from Britain, British High Commissioner to India Sir Michael Arthur opined today.

Talking to newspersons here, he said restrictions in financial services, insurance, banking and retail were impeding the volume of capital into India by British companies.

Sir Arthur said ''one of the constraints on British companies interested to invest in India has been that there are certain limitations in certain sectors where we are strong like financial services, insurance and banking, which impede the volume of capital that we would like to invest.'' The High Commissioner, however, hastened to add that ''it's beginning to change. Britain was encouraged in a way by liberalisation in India. We are enthuiastic about the Indian economy and we would like to be here more than we are at present.'' Stating that British companies were evincing keen interest to invest in retail sector in India, he expressed hope that the present restrictions on FDI in retail sector would be lifted soon.

Sir Arthur said Indian investment in Britain in 2005 was over one billion Pounds, but compared to British investment in India it was low.

He, however, said India was now the third largest investor in the UK in terms of projects. ''If the current trend continues, India will soon be the largest investor in the UK.'' The envoy was here to attend the Bangalore IT.in exposition as a Guest of Honour.

UNI MSP GD SHB ND1924