British High Commissioner to India Michael Arthur Britain said on Tuesday that India's small and medium enterprises had enough potential to attract investments, adding that renewed thrust on the sector would spur India's exports to the UK.
"SME sector is the next destination for economic cooperation between our two great democracies," the high commissioner said at an interactive meet at PHDCCI in New Delhi.
He said the SME sector was one area of Indian industry, which could attract huge investments including "technological inputs" from UK.
Trade between the two countries stood at over $5 billion in 2003, Arthur said, adding that new economy sectors like information technology, computer software and agri-processing hold the key to provide renewed thrust to India's exports to the UK.
"There is much scope for joint ventures between UK and India in SMEs and agro-industry, especially in Northern India," he said.
While overall share of India's exports to the UK registered a downward trend, bilateral trade in rupee terms grew by 12.8 per cent in 2002-03 against the previous year, PHDCCI president Ravi Wig said.
India's trade deficit during the period also declined substantially by 23 per cent.