LONDON: Indian-born British billionaire Gopichand Hinduja condemned the UK’s departure from the European Union, but threw his backing behind Prime Minister Rishi Sunak’s ability to revive the country’s ailing economy.
The Chairman of Indian conglomerate Hinduja Group said the UK’s efforts to forge new trade partnerships would provide a much needed boost for the country and reestablish Britain as an “excellent” place to invest.
“The step taken of Brexit was not good for the UK,” Hinduja told CNBC’s Tanvir Gill in an interview. “To correct it, now they have gone to these 11 countries. This will help,” he said, in reference to deals including the recently-signed Comprehensive and Progressive Agreement for TransPacific Partnership.
FTA with India: None of those partnerships will be more valuable to the UK than its forthcoming free trade arrangement (FTA) with India, according to Hinduja. “The biggest help the UK can get is from India, because India’s economy, by 2027, will be the third-largest in the world,” he said.
Hinduja said that bureaucracy had been the “biggest problem,” but he added that the ultimate benefits for the UK would be wide-reaching. “There will be a lot to be done in technologies, in infrastructure, in health, in education and, especially, in defense side the UK is very interested,” he said.
The UK economy has been sluggish over recent years as rising interest rates, stubbornly high inflation and a so-called ‘mini-Budget’ have weighed heavily.
On the right track: Hinduja said that the softness was largely “outside of the control” of the Government, citing events including Russia’s invasion of Ukraine, and insisted that Conservative leader Sunak was on the “right track” to raise the outlook.
“There are steps which the Prime Minister has taken,” he said, referring to Sunak’s five-point economic plan. That includes plans to halve inflation, grow the economy, reduce debt, cut NHS waiting lists, and curb immigration. “He’s going on the right track. He himself is a financial person and he is taking all the steps, but he has many challenges. It’s not an easy task for him,” he said.
