AIR Spotlight - Discussion on India - UK Ties

The All India Radio Newsonair's AIR Spotlight program is a treasure trove of knowledge, offering in-depth discussions on a variety of important issues. One such topic that was recently dissected was the relationship between India and the UK, a topic of significant importance for anyone preparing for the IAS exam .

The Panel:

1. Bhaswati Mukherjee, a seasoned diplomat
2. Sanjay Jha, a renowned journalist

The Subject Matter:

The episode delves into the intricate details of the relationship between India and the UK.

A Brief Background:

• The relationship between India and the UK is steeped in history and cultural exchange.
• Over time, the bilateral relations between India and the UK have matured and diversified.
• The British Prime Minister's recent visit to Ahmedabad, his first, was a significant event in this relationship.
• The visit, which was delayed several times due to the COVID-19 pandemic, was eagerly anticipated.

Learn more about the relationship between India and the UK here.

The Importance of the British Prime Minister’s Visit to India:

• The visit by the British Prime Minister is considered historic due to the evolution it signifies in the relationship between the two nations.
• Using the examples of companies like "Land Rover and JCB", the British PM illustrated the synergy between British and Indian identities.
• During the visit, the Indian Prime Minister and his British counterpart committed to signing an ambitious Free Trade Agreement between their countries by the end of 2022.
• The leaders also agreed on a new, expanded defense partnership between India and the UK.
• These developments indicate a mutually beneficial partnership between India and the UK, extending beyond just business and economics to strategic relations.

Why India Matters to Britain:

• In the wake of the pandemic and Brexit , Britain has recognized the need for robust economic partnerships.
  • This understanding is seen as a key reason for the PM's meeting with business leaders in Ahmedabad during his recent visit.
• The UK is home to a large Indian diaspora, estimated at around 1.5 million, who have made significant contributions to various fields including academia, literature, arts, medicine, science, sports, industry, business and politics.
• Indian diaspora-owned companies in the UK employ hundreds of thousands of people and contribute significantly to the UK's corporation tax, providing much-needed support in the current economic climate.
• India is a major investor in the UK, especially in sectors such as fintech, electric vehicles and batteries. In the fiscal year 2020-21, India was the second-largest source of investment in the UK in terms of project numbers.

India and UK’s Stance on Climate Change:

• India and the UK have previously agreed on a joint roadmap to combat climate change by 2030. This includes collaboration on clean energy transition, forest protection, and building resilient infrastructure in climate-vulnerable countries.
• At COP26, the two countries launched the global Green Grids Initiative for collaborative work on interconnected grids for renewable energy. This initiative supports India's vision of One Sun One World One Grid .
• The British PM has also accepted an invitation to join the International Solar Alliance, an initiative led by India.
• On the issue of climate change, India and the UK are seen as aligned and cooperative.
  • India stands to gain from British technology, technology transfers, and foreign direct investment.
  • Conversely, Britain can benefit from India's prowess in solar energy and other renewable energy technologies.

Comprehensive Strategic Partnership:

• In a virtual summit held in May 2021, the leaders of both countries adopted an ambitious ‘Roadmap 2030’ to upgrade bilateral ties to a ‘Comprehensive Strategic Partnership’.
• The Roadmap aims to deepen and strengthen engagement over the next decade in areas such as people-to-people contacts, trade and economy, defence and security, climate action, and health.
• The leaders also launched an ‘Enhanced Trade Partnership’ to unleash the trade potential between the countries and set a goal of doubling bilateral trade by 2030.
  • As part of this partnership, India and the UK have agreed on a roadmap to negotiate a comprehensive and balanced Free Trade Agreement.

Free Trade Agreement (FTA) between India and UK:

• India and the UK have announced their shared ambition to conclude negotiations on a comprehensive and balanced FTA by the end of 2022.
• The negotiation of an FTA between the two countries is expected to boost total trade by an estimated 28 billion pounds annually by 2035.
• A trade agreement between the UK and India is expected to stimulate growth and employment in both countries.
• An FTA with the UK will provide India with greater access to an open and competitive market and offer valuable opportunities for India's burgeoning companies.
• An FTA aids in diversifying supply chains by making cross-border business operations easier and cheaper.
• An FTA is also expected to improve product variety and affordability for consumers in both countries.

Issues Affecting the Bilateral Relationship between India and the UK:

• Britain is one of the few countries currently excluded from India's e-visa facility, while India is on a short list of countries requiring transit visas.
• Retrospective tax issues for British companies operating in India.
• Debates in the UK parliament over sensitive subjects such as Kashmir and separatist movements in India.
• The presence of several economic offenders who have fled India in the UK.

Defence Sector Cooperation between India and the UK:

• In 2021, India and the UK agreed to co-produce military hardware and collaborate on technology for combat aircraft and complex weapons, a move that could help India achieve self-sufficiency and export capabilities.
• Both countries have agreed to work together to counter emerging threats across land, sea, air, space and cyber domains.
• The UK has committed to partnering with India on new fighter jet technology and maritime defense to detect and respond to threats.
• The UK is establishing an Open General Export Licence (OGEL) for India to facilitate greater defence and security collaboration.
  • The OGEL will reduce bureaucratic red tape and expedite India's defence procurement.
  • This is the first British OGEL in the Indo-Pacific region.

For more insightful discussions, check out the Gist of AIR Spotlight here .