India-UK Relations, Economic and Trade Metrics

Table of Contents

Context: There is potential for a deeper U.K.-India economic partnership is vast.

India-UK Relation: Strategic Partnerships and Engagements

New Strategic Initiatives: U.K. has committed to a “new strategic partnership” with India, focusing on:

Quickly finalising the U.K.-India Free Trade Agreement (FTA).
Enhancing cooperation in security, technology, climate change, and education.

Economic and Trade Metrics

Outcomes of 2030 Roadmap: Bilateral trade reached £39 billion in 2023.
Employment Impact: Investments from both countries currently support employment for approximately 800,000 people across the two nations.
Future Planning: A call for a new Roadmap to 2047 to maximize the partnership’s benefits.

India’s Global Influence

Global Achievements:
- Successfully held the G-20 Presidency in 2023.
- Achieved a significant milestone with a successful moon landing.
- Holds a leading position in digital public infrastructure.
- Projected to become the world’s third-largest economy shortly.

Free Trade Agreement (FTA) Dynamics

Seen as a pivotal development for both nations, particularly in fostering technology and R&D collaboration.
India is noted for having the highest return on investment (ROI) per dollar spent on R&D globally.

Collaborative Initiatives and Partnerships

Health Sector Collaboration: Developed life-saving malaria vaccines as part of a long-standing healthcare partnership.
Sustainability Projects: British banks have provided billions in climate financing to India.
Educational Collaborations: U.K. universities are working with Indian industries to develop talent and deliver top-tier higher education in India through Transnational Education routes.

Defence and Security Alignment

The U.K. once dominated India’s defence equipment supply.
Current Defence Market Share: The U.K.’s share in India’s defence market has reduced to just 2.5%.
Indigenization Efforts: India is focusing on building its own reliable defence technology supply chains.
Recent Diplomatic Visits: India’s Defence Minister Rajnath Singh’s visit to the U.K. in January 2024 marked the first such visit in 22 years, enhancing defence ties.

Mobility and Visa Statistics

Visa Issuances: The U.K. issued about 350,000 visas to Indian nationals over the last year for work, education, or as dependants, promoting a ‘living bridge’ of skilled professionals and students.

Recommendations for Partnership Enhancement

Regulatory and Business Reforms: Encouragement for further reforms to improve business environments and integrate supply chains efficiently.
Intellectual Property (IP) and Innovation: Promotion of policies that provide adequate IP protection and fair commercial compensation, vital for co-creating and protecting new IP in India.