Addressing reporters, Bates said, ``The decline in British exports to India and vice versa has been triggered by the economic downturn here and the strength of the pound sterling in the UK. But the drop is only a temporary phenomenon in a course to unrestricted growth''. He, however, added that the invisible trade between India and Britain by way of goods and services ``was going strong and almost exactly in balance''.

Announcing that India was among the 12 priority markets identified by the Export Forum of the British Government as an ``investment partner'', he said further British investments were planned in agro-food, environmental technology, infrastructure with special emphasis on ports, power sector, education and training, health care, advanced manufacturing technology and machine tools as well as financial services.

Along with a 17-member delegation of his commercial team from the Deputy High Commission, Mumbai, and other British institutions and private sector companies, Bates is visiting the smaller western cities to explore possibilities of increasing Indo-British trade relations in the region.

After calling on 29 companies in Surat, the delegation was scheduled to meet 36 industries in Vadodara ``to learn about the companies, their existing contacts with British enterprises and establish where else the British can do business with them,'' Bates said.

Asked if the poor infrastructure of Gujarat would prove a deterrent, Bates said, ``The lack of infrastructure itself is an opportunity which needs to be explored, especially with regard to ports, power and roads''.

An exhibition of British industry catalogues focusing on Chemicals, Plastics and Process Equipment has also been organised at the Federation of Gujarat Industries to coincide with the visit. Of the 50 British companies exhibiting, at least 15 are seeking joint ventures in Vadodara region, Bates said.

The deputy high commissioner is scheduled to join Vadodara Municipal Commissioner G R Aloria for a civic lunch on Friday. Bates said the discussion was likely to focus on British participation in waste management programmes and infrastructure development in the city.

Discussing the indications given by industries in Surat, Bates anticipated the environment sector there ``to generate the most interest''. ``We have a lot to offer to Gujarat in the power and energy sector and infrastructure development,'' Bates reiterated, adding that Britain was the largest foreign investor in Gujarat.

Adding that Britain was also the second largest cumulative investor in the Indian market, Bates said that British investment in India had increased 15 fold since the opening up of the Indian market in 1991.

Following the formalising of the Indo British Partnership (IBP) in 1994, some 850 Indo-British joint ventures had been set up, mostly between small and medium sized enterprises, he said.