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Tatas welcome in UK, not Singur
- Jaguar workers hail India’s rise instead of seeing it as a threat

London, Sept. 19: The author of an important new report on India-UK trade said she had not studied the situation in Singur in detail but stressed that Tata’s acquisition of, first, Corus, and then, Jaguar and Land Rover, “has been good for Britain”.

German-born Katerina Rüdiger, whose report, The UK and India: the Other ‘Special Relationship’?, is being published tomorrow by a politically neutral and respected research organisation, The Work Foundation, said people in Singur should perhaps take note of the reaction of the workers at Jaguar and Land Rover.

“Normally, the common perception is that workers would be hostile to a ‘foreign takeover’,” Rüdiger told The Telegraph today, ahead of the publication of her report tomorrow. “But they understood Tata was not there for the short term but was planning to bring innovation and build a global brand.” The report states that the UK needs to do more to “nurture” its special relationship with India, and also act as the leader in boosting India’s trade with the EU.

In her opinion, the Tatas appeared to represent all that was best about the progressive approach of Indian industry because it took “a long term view of investment”.

While making it clear that she did not wish to be drawn into the politics of the crisis in Singur, Rüdiger drew attention to a passage on Tata in her report, called “Incredible India and the global shift of power”.

She had written: “In March 2008, when Tata, India’s biggest vehicle maker, bought the luxury brands Jaguar and Land Rover from carmaker Ford, the £1.15 billion deal made commentators around the world sit up and take notice. The takeover of the icons of British luxury followed the acquisition by the group’s corporations, active in industries ranging from IT services to power generation, of other high-profile British companies such as Tetley Tea and steel maker Corus.”

She also wrote: “This series of deals is indicative of the growing confidence and global outlook of an India which has over the last few years become one of the fastest growing economies in the world.”

She explained why Tata’s arrival was benefiting Britain in a line which should be studied in Singur: “Cross-border acquisitions help these companies to enter markets, acquire well-known brands, take advantage of a highly skilled work force and apply modern management techniques.”

Anyone reading in between the lines of Rüdiger’s report may conclude that Bengal could take off in dizzying fashion if only Tata is allowed to do in the state what it has been given the freedom and encouragement to do in Britain.

The land versus industry conflict is not underestimated in Britain, where authorities wishing to expand or build new airports, for example, have come up against powerful residents’ groups, but another passage also has relevance for Singur.

The report pointed out that “the UK, as well as other developed countries, should welcome the rise of India instead of seeing it as a threat”.

Rüdiger then analysed why Tata had not attracted the kind of hostility it had from groups in Singur: “The over 15,000 workers at Jaguar and Rover certainly took that view, welcoming the takeover by Tata which guaranteed them their jobs and pensions. This was also the opinion of their trade union and their local MP, who recognised that both brands were in financial difficulties and not only needed the cash injection but also a forward looking global company.

“That would help them to face the strong competitive market and enable them to respond to demands for innovation in a time of environmental challenges.”

Reacting to the report A.S. Lakshminarayanan, vice-president and head, Tata Consultancy Services, UK & Ireland, said: “I welcome this report from The Work Foundation. Tata has shown its repeated commitment to the UK through its acquisition of Corus and now Jaguar Land Rover for £1.15 billion.”

He stressed: “We continue to invest heavily in the UK economy.”

and currently employ almost 50,000 people, many of whom live in areas of longstanding economic decline and high unemployment.”

He went on: “We invest in our people building on existing skills and bringing expertise and innovation, particularly in IT where there is a UK-wide skill shortage. Tata Consultancy Services — the business and IT consultancy arm of the group — continues to deploy its onshore capability including its Diligenta operation which manages the Pearl contract from Tata’s Peterborough Innovation Centre, where over 5,000 people are employed.

“What we are bringing will benefit growing Indian firms and British companies keen to access the large Indian marketplace.”

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