Business Line reported that Mr Ratan Tata chairman of TATA Group has called on Britain to improve the competitiveness of its manufacturing sector, as he issued a warning about the high costs of doing business in the country.
Mr Tata said that a combination of factors including the tough economic conditions, the high costs of being a manufacturer in the country and a dying supply chain meant the country was not the first place you would look at to make a manufacturing investment.
He, however, said that the company did not intend to cut back in the UK or close down anything if we can help it, but to grow as much as we can in the UK and also other parts of the world.
Mr Tata comments came as Britain's Chancellor of the Exchequer Mr George Osborne unveiled a raft of measures to stimulate investment and cut the deficit, as he announced that the country was set to miss his own targets on debt reduction, and would be extending his austerity program by one more year to 2018. Among the measures announced to stimulate investment is a 1% cut to corporation taxes, which will fall to 21% by 2014.
The TATA Group, which owns Jaguar Land Rover, TATA Steel and Tetley Tea has previously expressed its concerns about British government policies, particularly environmental measures, such as the world's first carbon floor. The group has warned that this policy, in particular, could render Britain uncompetitive even within Europe.
He added that to a number of policies could help increase competitiveness of the industry, including incentives to set up plants, have research and development and buy technology, rather than handouts to industry.