• UGI USER
  • Aug 02, 2024
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STRENGTHENING U.K.-INDIA RELATIONS: PATHWAYS TO A STRATEGIC PARTNERSHIP

Syllabus:

  • GS-2- Bilateral relationship-India-UK, shaping India’s foreign policy

Focus :

  • The article emphasizes the evolving partnership between the U.K. and India, exploring the potential for a deeper economic and strategic relationship. It highlights areas of mutual interest such as trade, defense, technology, education, and mobility, and calls for a renewed focus on creating an equal and collaborative partnership that benefits both nations.
Source - IE

Introduction:

  • Political Context: In 2023, Indian Prime Minister Narendra Modi secured a third consecutive term, while in 2024, Sir Keir Starmer’s Labour Party achieved a landslide victory in the U.K. These developments mark a new chapter in U.K.-India relations.
  • Strategic Partnership:Both countries are eager to advance a “new strategic partnership,” with a focus on swiftly concluding a Free Trade Agreement (FTA) and enhancing cooperation in areas such as security, technology, climate change, and education.

Achievements and Current Status

2030 Roadmap Success

  • The 2030 Roadmap has already delivered significant results, with bilateral trade reaching £39 billion in 2023.
  • Both nations are investing heavily in each other’s economies, with around 800,000 people employed across both countries due to these investments.

Need for a New Roadmap

  • There is a call for both governments to agree on a new Roadmap to 2047, aiming to unlock the full potential of this partnership and further deepen economic ties.

India’s Growing Global Influence

India’s Global Standing

  • India’s global position is solidified by its successful G-20 Presidency in 2023, a remarkable moon landing, and leadership in digital public infrastructure.
  • Soon to become the world’s third-largest economy, India is increasingly seen as not just a market but a strategic partner, integrated into the U.K.’s research and development (R&D) chain, technology chain, talent chain, and supply chain.

The Role of the U.K. India Business Council

  • The U.K. India Business Council is actively working to help U.K. companies understand India’s strategic importance better, encouraging them to view India as a partner rather than just a market.

Key Areas of Alignment

Trade and Investment

  • Free Trade Agreement (FTA): The swift conclusion of the U.K.-India FTA is seen as a game changer, laying the foundation for a new structure of collaboration, particularly in technology and R&D.
  • R&D and Innovation: India offers the best return on investment per dollar of R&D spend globally. The Indian Space Research Organisation’s achievements are a testament to this, and U.K. companies are eager to collaborate with Indian firms and universities in these areas.

Healthcare Collaboration

  • The long-standing U.K.-India partnership in healthcare, which has successfully developed life-saving malaria vaccines, is a model for future collaborations.
  • There is potential to enhance U.K. clinical trials in India, share healthcare research, and support knowledge transfer between the two nations.

Climate Change and Sustainability

  • The U.K. is investing in innovative sustainability technologies and providing billions in climate financing to India.
  • Collaborative efforts between universities and industries are helping develop talent that can contribute to these initiatives.

Defense and Security

  • Historically, the U.K. was a major provider of defense equipment to India. Today, the U.K. holds only a 2.5% market share in India’s defense sector, which is focused on indigenization and building reliable defense technology supply chains.
  • The successful visit of India’s Defence Minister to the U.K. in January 2024 indicates growing momentum in defense cooperation.

Mobility and People-to-People Ties

Visa and Mobility Issues

  • Mobility is a critical area where the U.K. and India align seamlessly. Getting the mobility of students and skilled professionals right is vital for building trust and confidence between the two nations.
  • The U.K. has issued approximately 350,000 visas to Indian nationals over the past year, covering work, education, and dependent visas. This reflects a positive story of U.K.-India mobility.

Living Bridge Concept

  • The concept of a ‘living bridge’ between the U.K. and India, facilitated by strong people-to-people ties, is crucial for strengthening bilateral relations. This ‘living bridge’ also sends a strong message to Indian investors that the U.K. is welcoming and open for business.

Unlocking Full Potential

Challenges and Opportunities

  • While the potential for a deeper U.K.-India economic partnership is vast, realizing this potential will require concerted efforts from both nations.
  • In India, further business environment reforms are needed to attract more British investment. A facilitative tariff and standards regime would help unlock significant investment inflows.
  • There is a need for taxation policies and regulatory treatment that ensure parity and a level playing field for all investors. British companies are keen to co-create new Intellectual Property (IP) in India, provided that policies offer adequate protection and commercial compensation.

Ease of Doing Business

  • Optimizing the ease of doing business in India, such as shortening timelines for approvals and ensuring a consistent, transparent approach across government departments and regulators, is essential for deepening economic ties.

Conclusion: Towards a Shared Future

  • India represents one of the most exciting economic stories today, marking the beginning of the Indian century. This is an opportune time for the U.K. and India to join forces for mutual prosperity.
  • Prime Minister Modi’s statement, “The more your friendship deepens with India, the more prosperity accrues to both,” sets the tone for a shared future, underpinned by a strong, equal partnership between the two democracies.
  • The journey ahead will involve navigating challenges and capitalizing on opportunities to create a partnership that not only benefits both nations but also contributes to global economic stability and growth.

Associated Article

https://universalinstitutions.com/india-ukrelation/#:~:text=In%202004%2D%20India%2DUK%20relations,Dialogue%20to%20further%20enhance%20cooperation.

Mains UPSC Question

GS 2

Analyze the evolving dynamics of U.K.-India relations in the context of recent political developments in both countries. Discuss the key areas of collaboration and the challenges that need to be addressed to unlock the full potential of this strategic partnership. (250 words).”