Bajaj Auto is one of India's largest family-run businesses, making the country's characteristic black and yellow rickshaws, as well as scooters.

Mr Bajaj's appointment came as 350 businesspeople and government representatives from throughout the Commonwealth gathered in London for the annual Commonwealth Business Forum.

The theme of the meeting is how to meet the challenge of globalisation.

Hugh Morgan, chairman of an Australian mining firm, will co-chair the council with Mr Bajaj.

Practical measures

Delegates attending the forum include Sir Edward George, governor of the Bank of England, Syamal Gupta, chairman of Tata International, and finance ministers from Uganda, Ghana and Bangladesh.

The forum comes at a time of heated debate over the benefits of globalisation to the developing world.

Chief Secretary to the UK Treasury Paul Boateng said it was "vital to engage with the private sector to develop the strategies and practical measures to meet these objectives".

Dr Moham Kaul, director-general of the Commonwealth Business Council said: "It is essential that business and the government work together on a common agenda to help make globalisation work for all - even more so in these uncertain economic times."

He said the forum aimed to facilitate "high level dialogue between business leaders and Commonwealth Ministers of Finance aimed at practical outcomes".