Analysis Of Sansad TV Discussion: ”India-UK Relations”

Analysis Of Sansad TV Discussion
”India-UK Relations”

Context

• UK Prime Minister Boris Johnson and Indian Prime Minister Narendra Modi signed the 2030 Roadmap for India-UK Relations in a virtual meeting on May 4, 2021 in New Delhi.

Introduction

• Strong historical and cultural links bind India to the United Kingdom.
• With the elevation to a Strategic Partnership in 2004, India’s multidimensional bilateral relationship with the United Kingdom became much stronger.
• Since the Strategic Partnership in 2004, there have been regular exchanges of visits at the Prime Ministerial level.
• India is the United Kingdom’s second-largest foreign investor.
• While the United Kingdom is India’s 18th largest trading partner and third-largest investor after Mauritius and Singapore.
• In addition, many bilateral trade agreements exist between the two countries in order to strengthen ties.

What is a free trade agreement?

• Free trade agreements ( FTAs) are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariffs and non-tariff barriers on substantial trade between them.
• FTAs, normally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, trading etc.).
• FTAs can also cover other areas such as intellectual property rights (IPRs), investment, government procurement and competition policy, etc.

What is India-UK Roadmap 2030?

• The roadmap outlines ambitions for the partnership between the two countries over the next ten years.
• The roadmap heralds the commencement of an ‘Enhanced Trade Partnership’ between India and the United Kingdom, with goals of doubling the value of UK-India trade by 2030 and expediting the first phase of pre-negotiations for a future free trade deal.
• It is also the first since the formal ‘Comprehensive Strategic Partnership’ agreement in 2005.

Key points about the roadmap

Free Trade Agreement

• The document underscored the importance of establishing a Free Trade Agreement when discussing the India-UK trade partnership.
• The UK will open up the fisheries industry to more Indian players, expand nursing possibilities, recognise Indian seafarers’ qualifications, and engage in a cooperative dialogue on the Social Security Agreement as part of this roadmap.
• In exchange, India has consented to the United Kingdom’s requests for fruits, medical equipment, and mutual recognition of master’s degrees, as well as work toward reciprocal legal services opening.

Migration and Mobility partnership

• This includes making it easier for students and professionals to move legally, as well as improving India-UK cooperation in the fight against illicit migration.
• It also creates a new plan for the exchange of young professionals under which up to 3,000 young Indian professionals can seek employment in the UK for a period of two years without having to pass a labour market test.

Ease of Doing Business

• The roadmap explains how the two countries would work together to decrease or eliminate trade restrictions that Indian companies experience in the UK and vice versa.
• Through a new and renewed UK-India Ease of Doing Business MoU, both sides committed to continue sharing expertise on regulatory reform, tax administration, and trade facilitation and standards.

Education

• The roadmap outlines the expansion of cooperation between the two countries’ educational institutions within the framework of India’s New Education Policy.
• Thousands of Indian students have chosen the United Kingdom as their preferred educational destination. More than 6,500 new jobs for Indians are expected to be created as a result of the programme.

Boost to Indian start-ups

• India and the United Kingdom aim to boost two-way investment in Indian start-ups, early-stage and green enterprises, and other innovative ventures, with the purpose of contributing to sustainable development.
• The two countries also plan to look into longer-term prospects for a UK concessional finance offer to help India develop clean, green, and sustainable infrastructure.
• India and the United Kingdom are dedicated to a partnership that benefits both countries.

Way Forward

• The 2030 vision is for re-energised trade, investment, and technological collaboration that improves the lives and livelihoods of the citizens; enhanced defence and security cooperation; and India-UK leadership in climate.
• Both India and the United Kingdom are dynamic democracies and the world’s leading economies with impressive advancements in human resources, manufacturing, innovation, research, education, space, defence, and green technologies, and clean energy, among other areas.
• Through this ambitious roadmap, India and United Kingdom intend to foster a Comprehensive Strategic Partnership and bolster several key areas.