London: Peter Luff, chairman, Conservative Parliamentary Friends of India, during the course of a debate on the outsourcing of financial services jobs in the House of Commons, said that India and China will rule the economic world a few years from now and that Britain must understand this reality and adapt to it.

"In a few years, India and China will rule the economic world. We need to understand that reality and adapt to it. We must not try to resist it. We need to engage with India, not to treat it as a problem."

"Through our monstrous agriculture policies, we have for years forced India to export agricultural jobs. For many years before that, during the time of the British Empire, we forced India to export its manufacturing jobs to Britain. The boot seems now to be on the other foot, but there is a mutual benefit to be had from responding appropriately. The correct response will lead to gains for all," Luff said.

He recalled the decision of Tesco's chief executive, Sir Terry Leahy, to invest in India. He quoted Sir Terry saying, "Indeed, by remaining competitive and innovative, we will create an additional 13,500 jobs in the UK this year, and over 2,000 jobs specifically in Scotland."

Luff noted that the US economy has already benefited to the tune of $ 16 billion in cost savings, while the British economy has saved only $ 1 billion.

"Companies have to make a difficult choice. If they do not outsource, they will probably go under. Some jobs may be lost in the process in the short term, but the gains are considerable."

PTI