U.K.-India economic partnership
The potential for a deeper U.K.-India economic partnership is vast, but this will require work from both nations
Two democracies, two elections and two path-breaking results
Modi became the second leader in Indian history to win a third consecutive term. In July, the Labour Party under Sir Keir Starmer achieved a landslide victory in the United Kingdom. This is a new chapter of the U.K.-India partnership.
There are positive signals in the U.K. Government’s engagement with India
1 The Labour Party has pledged to pursue a “new strategic partnership” with India.
2 TALK ON FTA AND OTHER ISSUE
As part of this, we are eager to see a swift conclusion of the U.K.-India Free Trade Agreement (FTA) and deeper cooperation on security, technology, climate change, and education.
3 David Lammy, visit India within a month of taking office.
It is good to see the U.K.’s Secretary of State for Foreign, Commonwealth and Development Affairs, David Lammy, visit India within a month of taking office.
4 The ‘2030 Roadmap’ has delivered. Bilateral trade stood at £39 billion in 2023. employing around eight lakh people between both countries currently.
However, we call on both governments to agree on a new Roadmap to 2047 to unlock the full benefits of this partnership.
India matters and it matters now
India’s global position AS
successful
- G-20 Presidency in 2023,
- remarkable moon landing,
- primacy in digital public infrastructure,
- and soon-to-be the world’s third largest economy are testament to this.
is on a mission to help the U.K. and its companies understand this better and update how they see the Indian opportunity.
India is not simply a market but a strategic partner — part of our research and development (R&D) chain, technology chain, talent chain and supply chain.
FTA would be a game changer
— it is the foundation of a new structure we can build, and central to that structure is technology and R&D collaboration.
PARTNERSHIP
1 WHAT INDIA IS DOING
India has the best return on investment (ROI) per dollar of R&D spend in the world — look at what the Indian Space Research Organisation has achieved. Equally, Indian firms are eager to work with U.K. companies and our world-class universities.
2 HEALTH PARTNERSHIP
The two countries have a long-standing health-care partnership, successfully developing the life-saving malaria vaccines to address a global challenge.
Can we enhance more U.K. clinical trials in India, share health-care research and support knowledge transfer?
3 CLIMATE PARTNERSHIP / TRADE
The U.K. is investing to support innovative sustainability technology and British banks provide billions in climate financing to India.
Our university members are collaborating with Indian industry to help develop talent for India and the world. And partnerships with Indian universities, through innovative Transnational Education routes, can help offer world-class higher education in India.
Key areas of alignment
science and innovation
Last year’s landmark G2G agreement to collaborate on science and innovation points the way.
defence equipment
The U.K. once provided most of India’s defence equipment. Today, it has a mere 2.5% market share.
India is focused on indigenisation, building reliable defence technology supply chains, securing access to critical technology, increasing exports, and creating domestic manufacturing jobs.
The U.K.’s mature and sophisticated defence industry can support this mission. The successful visit to the U.K. by India’s Defence Minister Rajnath Singh in January 2024 (the first by a Defence Minister in 22 years), indicates that momentum is rising.
students and skilled professionals
Getting this right for students and skilled professionals is vital. It will impart trust and of mutual confidence, sending a strong message to Indian investors that the U.K. is welcoming.
Over the last year, about 3,50,000 visas have been issued to Indian nationals for work, education or as dependants.
Unlocking full potential
British companies are committed to manufacturing in India
and welcome policies that help integrate India into their supply chains without impacting their efficiency. For example: a facilitative tariff and standards regime would help unlock significant inflows.
taxation policies and regulatory
It is essential to have taxation policies and regulatory treatment that ensure parity and level-playing field across all investors.
Intellectual Property (IP)
British investors are keen to bring and co-create new Intellectual Property (IP) in India with Indian partners, if policies can provide adequate protection and commercial compensation for their IP.
Ease of doing business optimisations
such as shorter timelines for approvals and a more consistent, transparent approach across government departments, States and regulators for clearances, are also important.
source the hindu
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