UK secures nuclear, jet deals with India

BANGALORE/NEW DELHI (Reuters/AFP) British Prime Minister David Cameron trumpeted a $1.1 billion defence deal with India on Wednesday, a product of Britains drive to court Indian business and tap new sources of economic growth. In comments likely to please Delhi but that could upset Islamabad, Cameron also said Pakistan should not promote the export of terror, days after a huge leak of US documents raised questions about Pakistans role in Afghanistan and its support for the Taliban. On his first visit to India since taking office in May, Cameron leads a delegation including six ministers and more than 30 senior executives from top UK firms to show Britain is serious about boosting economic exchanges with India. BAE Systems, Europes biggest defence contractor, and Rolls-Royce signed about $1.1 billion worth deal with a state-run Indian firm to supply 57 Hawk trainer jets to India, one of the worlds biggest defence markets. Following in Washingtons footsteps, London will start granting licences to its civil nuclear firms to export to India, opening up business prospects potentially worth billions of pounds, according to British government sources. Chancellor George Osborne was in Mumbai to persuade Asias third-largest economy to free up its financial services market and hasten the signing of a free trade deal between India and the European Union. I want this to be a relationship which drives economic growth upwards and drives our unemployment figures downwards, Cameron said in a speech to young Indian business leaders at the high-tech Infosys campus in Bangalore. This is a trade mission, yes, but I prefer to see it as my jobs mission, he said. India belongs to the BRIC group of rapidly growing emerging economies along with China, Brazil and Russia, the likes of which Britain is hoping to tap especially in the wake of the global financial crisis. Cameron has often lamented that Britain trades more with Ireland than it does with all the BRICs combined and he has vowed to remedy that with vigorous pro-trade diplomacy. PAKISTAN WARNING Cameron said on Wednesday that Pakistan must not become a base for militants and promote the export of terror across the globe, saying their bilateral ties depended on that. The remarks are likely to cheer officials in Delhi. We should be very, very clear with Pakistan that we want to see a strong, stable and democratic Pakistan, he told reporters. Cameron said Pakistan must not look two ways in Afghanistan by publicly working to stabilise the country while secretly funding insurgents. Its unacceptable for anything to happen within Pakistan thats about supporting terrorism elsewhere, Cameron told BBC radio during a trip to India. And its well documented that that has been the case in the past and its an issue that we have to make sure that the Pakistan authorities are not looking two ways, he added. He said there had been big progress by Pakistan in fighting militant groups, which had improved relations with Afghanistan, but we need to see that progress continue. Cameron leads the biggest trade delegation in modern times to India as a statement of intent amid talk of Britain wanting to forge a special relationship with India - a phrase more closely associated with Britains ties with Washington. Britain will start granting licences to its civil nuclear firms to export to India, government sources said. Business Secretary Vince Cable, on a visit to India with a large delegation, told reporters that cooperation in the civil nuclear industry was one area where he expected the two nations to make good progress. Government sources said this was a reference to a change in policy on export licences for firms like Rolls-Royce and Serco. The move is aimed at boosting business and sending a positive signal to India on trade links. The new policy will also allow existing joint British-Indian research into areas such as nuclear physics to be scaled up. Previously, policy was not to let firms get involved in Indias civil nuclear market because it is a nuclear-armed state that is not a signatory to the Nuclear Non-Proliferation Treaty and that does not separate its military from its civilian nuclear industries.

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