India and UK: Exploring New Possibilities
With Prime Minister Boris Johnson visit, there is a chance! A chance to reinvigorate a relationship that has initially been suffered a scathing bipartisan due to the India’s hunting colonial past. Later, continued after India’s independence as it viewed itself as a country shackled by the colonialism which could invoke empathy for other countries marked by similar circumstances as India suffered. These invocations frustrated the west for whom India appeared as a sympathiser of USSR. However, all these discrepancies vanished away since India opened its economy that has become a fascinating pole for investment and trade; further this development coupled with China dramatic rise that has, at present, poised to dominate the Indo-Pacific region. Both the countries, India and United Kingdom, transformed their relationship into strategic partnership in 2004 though the real potential of this partnership is still untapped.
The changing optics between both the countries could be marked by the lifesaving vaccine, that has developed by the collaboration between Oxford AstraZeneca, a British-Swedish company and manufactured by the Serum Institute of India. That has not saved life of millions of Indian and Britishers but used across the globe. When we are amidst 21st century these two nations could accelerate the pace of collaboration on multiple fronts like Trade, Job creation, Socioeconomic empowerment, Achieving SDGs, Powerful Democracies. It's worthwhile to tell that India and the United Kingdom have complimentary economies. While India has the third-highest number of technology start-ups in the world, the United Kingdom has the third-highest number of billion-dollar tech enterprises. In 2019-20, India was the UK's foremost FDI provider, while the UK was India's sixth-largest investor, with $30 billion in FDI. Despite the fact that their bilateral commerce is worth $15.5 billion, they are not among each other's top ten traders. New Delhi and London have begun official talks on a Free Trade Agreement (FTA), with the intention of attaining an early harvest trade deal in the coming months. Early harvest arrangements, for the uninformed, are used to open bidirectional commerce between two countries on a limited range of commodities and services, primarily as a precursor to signing a more comprehensive free trade deal. Despite the fact that their bilateral commerce is worth $15.5 billion, they are not among each other's top ten trading partners. On India's list of largest trading partners, the United Kingdom is ranked 18th. As a result, commerce is a key focus of the India-UK relationship. Following Brexit, now is an excellent time to forge a comprehensive connection between the two democracies that is aligned with both economies' potential. This collaboration could lead to a number of favourable results.
Unilever, HSBC, GSK, Vodafone, Diageo, and Standard Chartered employ 420,000 individuals in India through indirect employment. With significant improvements in the ease of doing business, India might become a major outsourcing destination for British manufacturers. For industries such as IT, R&D, and engineering, having a standard business language is an added benefit. However, in May last year both the Prime Ministers have jointly launched the 2030 Roadmap, which will function as an operational structure for UK-India relations in a variety of areas including health, education, trade, climate change, science and technology, and defense. A Joint Working Group on Trade was established under the 2030 Roadmap to better understand each other's aspirations and interests before effectively agreeing to an FTA. India is also an important strategic ally for the United Kingdom in the Indo-Pacific, both in terms of market share and defense cooperation. A successful completion of an FTA with India will strengthen the United Kingdom's vision of a Great Britain at the core of the Indo-Pacific. However, education is one of the relatively underappreciated sectors with significant promise in the overall India-UK relationship.
Regardless of the difficulties caused by the Ukraine crisis, the India-UK cooperation has been improving, as seen by the signing of a Comprehensive Strategic Partnership in 2021. The arrangement also introduced a 2030 Roadmap for India-United Kingdom Relations, which essentially defines the mutual cooperation ambitions. During her recent trip, the UK Foreign Secretary emphasized the need of democracies working together to discourage belligerents in order to fight Russian aggression and reduce global strategic reliance on the country. The Secretary advanced discussion between both the two nations on defense-related trade and increasing cyber security and defense cooperation. A new collaborative cyber security program between India and the United Kingdom is expected to be unveiled soon to secure online infrastructure in both countries. The first Comprehensive Tech Dialogue, a ministerial-level forum on emerging technologies, is also being planned by India and the United Kingdom.
The United States plays a critical role in the transformation of India's and the United Kingdom's bilateral relations. The UK's emphasis moved to India because it recognized India as a growing global power and a key partner in the Indo-Pacific. The United States was the first to recognize India's fast increasing relative importance in the international system. By the close of the twentieth century, the United States had announced a policy of aiding India's rise, based on the belief that a stronger India would benefit US interests in Asia and elsewhere. The United States plays a critical role in the transformation of India's and the United Kingdom's bilateral relations. The UK's emphasis moved to India because it recognized India as a growing global power and a key partner in the Indo-Pacific. The United States was the first to recognize India's fast increasing relative importance in the international system. By the close of the twentieth century, the United States had announced a policy of aiding India's rise, based on the belief that a stronger India would benefit US interests in Asia and elsewhere. The United States' strategic engagement to assisting India's rise stemmed from an understanding of the perils of a China-dominated Asia. The UK and China have had great diplomatic cooperation for the past two decades, with the former declaring a "golden decade" in relations with China in 2015.However, in response to China's imperialistic ambitions and the United States' conflict with Chinese power, the United Kingdom announced its own "Indo-Pacific strategy," with India as a key partner once again.
In terms of market size and defense, India is a major strategic ally for the UK in the Indo-Pacific, as evidenced by the adoption of the Defence and International Security Agreement between India and the UK in 2015. Britain has been attempting to exploit chances in the Indo-expanding Pacific's economies in order to solidify its position as a serious global player. With solid diplomatic relations with India, the British would be better equipped to fulfil their goal. Because it has naval installations in Oman, Singapore, Bahrain, Kenya, and the British Indian Ocean Territory, the UK is a regional force in the Indo-Pacific for India.
The United Kingdom has also committed £70 million in British International Investment funds to boost India's use of sustainable energy, which will aid in the development of clean energy facilities and solar power in the country. India has pushed for easier market access for its fisheries, pharmaceuticals, and agricultural products, as well as duty exemptions for labour-intensive exports.
Notes
1. UK and India announce new era in bilateral relationship - GOV.UK: https://www.gov.uk/government/news/uk-and-india-announce-new-era-in-bilateral-relationship
2. In unfolding era of strategic convergence, India and Britain are exploring shared possibilities, deepening engagement | The Indian Express: https://indianexpress.com/article/opinion/editorials/india-and-britain-are-exploring-shared-possibilities-7882846/
3. Side-stepping irritants: The Hindu Editorial on India-U.K. ties - The Hindu: https://www.thehindu.com/opinion/editorial/side-stepping-irritants-the-hindu-editorial-on-india-uk-ties/article65350942.ece
4. India, UK to deepen defence ties, seal free-trade agreement 'before Diwali' | Business Standard News: https://www.business-standard.com/article/current-affairs/india-uk-to-deepen-defence-ties-seal-free-trade-agreement-before-diwali-122042200670_1.html
5. India, UK to strengthen ties on trade, security, business: Boris Johnson | Business Standard News: https://www.business-standard.com/article/current-affairs/india-uk-to-strengthen-ties-on-trade-security-business-boris-johnson-122032300062_1.html
6. Ink India-Britain free trade, unlock new opportunity - The Hindu: https://www.thehindu.com/opinion/op-ed/ink-india-britain-free-trade-unlock-new-opportunity/article38366663.ece
7. UK-India agree partnership to boost work visas for Indian nationals - GOV.UK: https://www.gov.uk/government/news/uk-india-agree-partnership-to-boost-work-visas-for-indian-nationals
8. Britain badly wants a trade deal with India – and it may offer thousands of work visas in return: https://scroll.in/article/1014359/britain-badly-wants-a-trade-deal-with-india-and-it-may-offer-thousands-of-work-visas-in-return
9. Indian small businesses can enter UK market with little investment: All you need to know - Business News: https://www.indiatoday.in/business/story/new-opportunity-for-indian-businesses-to-enter-into-uk-market-with-little-investment-1859168-2021-09-30
10. UK and India ink Indo-Pacific defense agreement | News | DW | 22.04.2022: https://www.dw.com/en/uk-and-india-ink-indo-pacific-defense-agreement/a-61557759
11. India: US, UK commit to enhanced India ties in Indo-Pacific talks - The Economic Times: https://economictimes.indiatimes.com/news/india/us-uk-commit-to-enhanced-india-ties-in-indo-pacific-talks/articleshow/90172321.cms?from=mdr
12. Indo-pacific: US, UK keen to enhance ties with India as part of Indo-Pacific push - The Economic Times: https://m.economictimes.com/news/defence/us-uk-keen-to-enhance-ties-with-india-as-part-of-indo-pacific-push/articleshow/90157315.cms
Pic Courtesy-Arseny Togulev at unsplash.com
(The views expressed are those of the author and do not represent views of CESCUBE.)
