- India-UK
- Intro: India and UK share a long history, bound together by democratic values, language and people.
- Context-
- Economic cooperation:
- Negotiations moving forward on Enhanced Trade Partnership ETP
- Trade between India and UK touched $15.5 billion with a $2 billion trade surplus in favour of India.
- India is now the second largest investor in the UK economy.
- There are 842 Indian companies in the UK, employing more than 110,000 people
- UK to invest in India's national infra pipeline project.
- UK a partner in developing India's financial services center- GIFT city.
- The decision to leave Europe’s single market has forced the UK to look for strong trade relationship with partners beyond the EU, and to target the most dynamic economies of which a considerable number are located in the Indo Pacific region
- UK has recently proposed D-10, a partnership of 10 democracies including India for partnership in rolling out of 5G technology.
- India-UK virtual summit 2021-
Road-map 2030 for a Comprehensive Strategic Partnership adopted at India UK bilateral summit
- Both leaders welcomed the launch of the Enhanced Trade Partnership, and announced their intent to negotiate a comprehensive Free Trade Agreement to unlock the full potential of their trade and commercial relationship
- ambitious target of more than doubling India-UK trade by 2030.
- They welcomed the signing of the India-UK comprehensive Migration and Mobility Partnership (MMP) and expressed confidence in the benefits it will have in facilitating legal movement of students and professionals, and combating illegal migration and organised immigration crime.
- UK is already a partner in India’s CDRI
- Defence and international security
- Cyber security
- Counter terrorism
- Clean energy
- India-UK tech alliance
- India-UK Joint Economic and Trade Committee JETCO to deepen economic relations.
- SBI launched India's first bond index series for overseas investors at LSE
- UK is fourth largest investor in India
- Defence Consultative Group Meeting (DCGM) held annually at defence secretary level.
- Newton-Bhabha fund for cooperation in Science
- British faculty members have visited India under GIAN(Global initiative for a karmic network)
- UK also supports skills India mission.
- Nehru center ,one of ICCR’s flagship cultural centre abroad for promoting cultural ties.
- Indian diaspora in UK accounts for 2% of total population and accounts for 6% of GDP.
- Johnson said: “As a key player in the Indo-Pacific region, India is an increasingly indispensable partner for the United Kingdom as we work to boost jobs and growth, confront shared threats to our security and protect our planet.”
- national defense and security review talks of Britain's “tilt” towards Indo-Pacific.
- In a post-imperial world, Britain like its European counterparts is trying to fit in a region that is becoming the center of geopolitical conflicts.
- Post pandemic world can provide avenues of cooperation between a “Global Britain” and a “New India.”
- Indian diaspora is a “living bridge between both the countries that must be carefully and continuously nurtured.” - SJ
- China’s National security law in HK and aggression on India's borders opens up new avenues for cooperation between India and the UK
- India -UK defence logistics pact would provide strategic synergy between Indian and British naval bases in Indian ocean
- UK has provided a liason officer at IFC-IOR to maintain an active presence in the Indo-Pacifc region
- Challenges -
- Conclusion: BoJo- India UK partnership is a beacon in stormy seas.
- Brexit and impact on India:
- Britain left EU under article 50 of Lisbon Treaty.
- After losing access to the EU single market, the UK would want to develop trade relations with emerging markets around the world. India, with strong economic fundamentals and a large domestic market, is in a better position to gain that opportunity.
- India is a significant Foreign Direct Investment (FDI) source for the UK because many Indian firms have used it as a gateway to the EU single market. Initially, after divorcing from the EU, the UK wouldn’t like to miss Indian investment. It will attract Indian firms by offering more incentives such as tax break, relaxed regulations and opening up markets.
- The depreciation in pound would help Indian companies to import items from their UK subsidiaries and will create incentive for Indian investment in the region. It would make UK an attractive destination for higher studies
- UK might sign an FTA with India before India finalises BTIA with EU
- Automobile and steel sector may face adverse impact of slowdown of British economy
- Impact on Europe :
- in the words of Richard Haass, EU is moving from a united states of Europe to a united Europe of states model where the states have greater sovereignty.
- Movement of people b/w UK and EU to be affected.
- Also we’ll have to see how the economy of Britain performs and if it does well it may create demands by other countries as well .
- It has strengthened anti immigration parties in Europe like in Hungary.
- Christmas day agreement between UK and EU-
- Tariff free access to most goods and services between UK and EU
- Boris Johnson- Although we have left the EU, Britain will remain culturally, emotionally, historically, strategically and geologically attached to Europe
- Further reading-
- https://southasianvoices.org/global-britain-and-india-a-new-agenda-for-cooperation/
- https://www.hindustantimes.com/analysis/the-deepening-bonds-between-india-and-the-uk/story-scufMrBk2BfZIMVE5NKFNI.html
- https://www.orfonline.org/expert-speak/the-paradoxes-of-india-u-k-ties/