Tea in London with Lord Swraj Paul of Marylebone is more than an occasion for a collation; it’s an opportunity to experience Britain’s rich traditions, for he’s among the 650 life peers of the House of Lords. Even the most worldly of visitors to the Houses of Parliament is touched by the sheer history of the place.

And because Lord Paul is also one of Britain’s most prominent businessmen – his company, Caparo, is the biggest manufacturer of steel tubes here and has the largest market share in America as well – a conversation with him quickly turns into a colloquy on contemporary economic trends.

“I’m an optimist for Britain, and I’m an optimist for the United States,” Lord Paul said, sipping – what else? – Darjeeling tea, and nibbling sparingly on savories served by an attendant. “And I’m bullish on India and its growing middle class.”

That’s a lot of territory to cover: more than 1.5 billion people live in those three countries. These days, Lord Paul travels even more extensively than before, not only to monitor his business Raj in those places but also in behalf of Britain. He was recently named as “Business Ambassador” by Prime Minister Tony Blair; this honorary post is in addition to serving as a director of the London Development Agency, among other positions.

What that involves is old-fashioned salesmanship for Britain, especially in New York and other major cities of America. “I have a great built-in advantage in my task – which is that Americans are already predisposed toward Britain,” Lord Paul said.

More than 40% of American foreign direct investment, or FDI, in the European Union’s 25 member states goes to Britain annually, or around $20 billion. (Japan’s figure is comparable.) Britain receives about $100 billion each year in total FDI, representing 22% of all FDI to the EU annually.

The money goes mostly into manufacturing projects, but also, increasingly into information technology, biotech, electronics, and pharmaceuticals. Of the 22,000 British companies that have overseas parents – Britain doesn’t allow foreign companies to operate in its precincts – many are the beneficiaries of this inflow of capital. Among them are 5,600 American companies that largely seem to be flourishing in his country, Lord Paul said.

He sees his role as pumping up global investment interest in Britain especially because, as Lord Paul put it, “Britain long undersold itself in the global community.”

“There’s been a remarkable revival of the economy – annual growth rates of nearly 3%, very nearly the highest in Europe, a gross domestic product exceeding $1.5 trillion, and per capita income of $27,000,” he said, reciting statistics with practiced ease. “There’s a discernible dedication to the work ethic, the unions are cooperative, and the labor force is productive. This country is ready to grow even faster.” Indeed, Barclay Bank’s chief economic adviser, Christopher Smallwood, said not long ago that at the current rate of economic growth, Britain will overtake Germany – whose GDP is $2 trillion – to become the EU’s biggest economy in less than two decades.

In broadcasting his optimistic message about Britain’s growth potential to global audiences – but particularly in America – Lord Paul can draw on his own stellar record as an immigrant businessman from India’s Punjab state. The son of a prosperous steel manufacturer, he came to London in 1968 to seek medical treatment for his ailing infant daughter, Ambika. She died, and he took “sanyas,” the Hindu custom of abdicating from professional life to reflect on life and its vicissitudes. He bounced back quickly, though, founding Caparo to take over languishing steel mills in Britain.

In 1978, Caparo’s revenues were $5 million; last year, the group – which has expanded into hotels and other enterprises – had a pre-tax income of $1.2 billion. Employing 4,500 people in Britain, America, Canada, Spain, and India, Caparo is the biggest totally owned family business in Britain. In America, Caparo has manufacturing plants in Missouri, Georgia, Illinois, Indiana, Ohio, Arizona, and Michigan.

Because of Caparo and other shrewd investments, Lord Paul has become one of his country’s wealthiest individuals.

A substantial portion of his wealth goes into philanthropy. For example, he donated more than $2 million to the London Zoo to create a children’s zoo, which is named after his daughter Ambika.

“But I don’t just give money away,” Lord Paul said. “I carefully look at how it’s spent.”

Thus, he suggested major management reforms at the zoo, which last year recorded its first profit.

Another key interest is education. Lord Paul serves as the chancellor of Wolverhampton University, Britain’s fourth largest after Oxford, Cambridge, and the University of London.

He’s also a patron of the arts. He’s a member of the board of Prince Albert Hall, and is also active in promoting Asian and Indian art exhibits in Britain.

India, of course, remains an abiding love. He’s the only living Briton to have received the highest civilian honors of two countries: his life peerage in Britain, and the Padma Bhushan from India.

So what’s there left to do for a man of extensive accomplishments and vast wealth? Lord Paul has formally turned over the day-to-day operations of Caparo to his three sons and daughter, and they seem to be doing very well. Still, he said, “If I used to work 26 hours a day until not long ago, I now work 24 hours a day.”

Some of that punishing schedule can be attributed to select committees of the House of Lords. One committee in which he’s active deals with science, technology, and energy, and Lord Paul is overseeing the production of a report; that’s why he’s been spending considerable time in Germany and other EU countries.

On those trips, Lord Paul has also been studying the prospects of Britain adopting the euro as its currency to replace the pound sterling. It is a touchy issue, and the country seems divided over it.

“But look, more than 60% of Britain’s annual trade of more than $700 billion is with EU countries,” he said. “It makes sense for us to join the euro. Don’t forget, when converting currency, you typically lose 1% of the value during the transaction; then there’s also the risk of exchange fluctuations.”

Will Britons acquiesce to giving up their treasured pound?

Lord Paul smiled somewhat ruefully, and said: “There’s a lot of political and emotional resistance.”