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India-UK trade deal will benefit businesses and consumers in both countries: UK’s Secretary of State for International Trade writes.
Key Takeaway
- With Covid-19 bringing uncertainty, my firm belief is that free trade — the primary force of prosperity throughout history — is the answer to constructing the long-term security that people worldwide require.
- The relationship between India and the United Kingdom is frequently described as a Living Bridge — a dynamic economic force of people, businesses, and ideas.
- Indian firms, both established and new, have discovered opportunities in the United Kingdom.
- Additionally, British companies in the food and finance industries are expanding and investing in India.
India-UK Relations
- Political relations
- Strong ties of history and culture bind India and Britain.
- India’s multifaceted bilateral relationship with Britain intensified with its upgradation to a Strategic Partnership in 2004.
- Bilateral trade
- The India-UK economic relations received a vibrant upward direction after establishing the Joint Economic and Trade Committee (JETCO) in 2005 to tackle trade and investment barriers on both sides and promote business links.
- India’s trade in goods and services with the UK increased to $31.34 billion in 2022 from $19.51 billion in 2015.
- Foreign Direct Investment (FDI)
- India has emerged as the third largest source of foreign direct investment (FDI) for the United Kingdom (UK), after the United States (US) and France.
- Free Trade Talks
- In 2022, India and the United Kingdom concluded the fifth round of talks for an India-UK Free Trade Agreement (FTA).
- The FTA is important for both countries as it would boost and create a robust framework for overall trade and investment between the two countries.
- Strategic relations
- The P5 refers to the UN Security Council’s (UNSC) five permanent members (the P5), namely China, France, Russia, the United Kingdom, and the United States.
- The UK is an essential P5 partner of India, where India can influence the UNSC’s decision, and the UK supports the permanent membership demand of India in the UNSC.
- Civil Nuclear Cooperation
- The India-Britain Civil Nuclear Cooperation Agreement of 2010 is essential for India’s energy security.
- Security relations
- One of India’s significant defence purchases from Britain is HMS Hercules, renamed INS Vikrant in 1961.
- India-Britain joint exercises:
- Ajeya Warrior-Army
- Konkan-Navy
- Indradhanush-Air Force
- Cultural relations
- India and the United Kingdom signed a Memorandum of Understanding on Cultural Cooperation.
- The Nehru Centre (TNC), established in 1992 in London, is the cultural outreach of the High Commission of India in the United Kingdom.
- The Centre organises a wide range of cultural functions at its premises.
Why is India-UK Partnership Important?
- From India’s perspective
- As a regional Indo-Pacific force, the UK has naval bases in Kenya, Singapore, Bahrain, Oman, and British Indian Ocean Territory.
- In addition, to the duty concessions for labour-intensive exports, India has sought easy market access for Indian pharmaceutical, agricultural, and fisheries products.
- Additionally, the UK has indicated that it will provide £70 million in British International Investment funds to boost India’s use of renewable energy.
- It will support the development of solar power in the area and the
- Furthermore, the construction of renewable energy infrastructure.
- From UK’s perspective
- As the UK has attempted to broaden its markets outside of Europe since Brexit, a successful conclusion of an FTA with India will support its “Global Britain” aspirations.
- With solid ties to India, the British would be better equipped to accomplish this goal.
- Furthermore, Britain has been attempting to seize opportunities in the Indo-growing Pacific economies to cement its place on the global stage as a serious global actor.
Way Forward
- Firstly, India must acknowledge the lack of harmony between the various strands of the relationship.
- Lengthy joint statements and unattainable goals are not the solutions.
- Finding common ground on issues that trouble India should be the top priority.
- As a result, it is necessary to rely on deep cultural, historical, and linguistic ties to strengthen relations between India and the United Kingdom.
Pic Courtesy: The Hindu
Content Source: Indian Express