India UK relations

Last Updated on 25th July, 2024
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India UK relations

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Context:

 Details:

  • The statement was made after meeting the visiting Secretary of State for Foreign, Commonwealth and Development Affairs, who is the highest ranking official from the United Kingdom to visit India since the Labour party won a landslide victory in the recent election.
  • The two sides launched the U.K.-India Technology Security Initiative.

U.K.-India Technology Security Initiative

●The agreement was “spearheaded” by the National Security Advisors of the U.K. and India.

Initiative is aimed at ensuring telecommunications security

●It builds on past telecom agreements between the United Kingdom and India as both sides are trying to deal with the emerging security challenges and take advantage of the new investment opportunities.

The collaboration under this initiative will include government, the private sector, academia and research and development institutions.

The Technology Security Initiative will refresh and deepen the India-UK comprehensive strategic partnership, focusing on boosting economic growth in both countries.

India-UK relations

  • India-UK historical ties, over the years have transformed into a robust, multi-faceted, mutually beneficial relationship.

Strategic partnership

  • During the India-UK Summit in virtual mode on 4 May 2021, Prime ministers of both the countries agreed to a new and transformational India-UK 'Comprehensive Strategic Partnership' and an ambitious India-UK Roadmap 2030 to steer cooperation for the next ten years.

VVIP engagements

  • VVIP engagements are frequent between the countries. Ex. On 2 November 2021, Prime Ministers jointly launched the ambitious 'One Sun, One World, One Grid' (OSOWOG) programme and the Infrastructure for Resilient Island States (IRIS).
  • The OSOWOG is a part of the International Solar Alliance (ISA); and the IRIS is a part of the Coalition for Disaster Resilient Infrastructure (CDRI).

Economic, Trade and Financial cooperation

Trade

  • India-UK bilateral trade (both goods and services) stood at £36.3 billion during the year FY 2022/23, an increase of 34.2% or £9.2 billion from 2021/22.
  • India’s total imports from the UK amounted to £14.7 billion and India’s total exports to the UK amounted to £21.6 billion.
  • India was the UK’s 12th largest trading partner in this period accounting for 2.1% of UK’s total trade.
  • Total bilateral trade in goods (merchandise) was £18.6 billion, of which India’s export to the UK was £10.5 billion while India’s import from the UK was £8.1 billion.
  • The total trade in service was £17.7 billion, comprising India's export of £11.0 billion and India’s import of services from the UK of £6.7 billion. (Source: Department for Business and Trade, United Kingdom)

Investments

  • India invested in 118 projects and created 8,384 new jobs in the UK to retain the position of second-largest source of foreign direct investment (FDI) after the US, for Business and Trade (DBT) inward investment statistics for 2022-2023.
  • UK is the 6th largest inward investor in India, with a cumulative equity investment of US $ 33.88 billion (April 2000 - March 2023), accounting for around 5.34 % of all foreign direct investment into India.

Institutional Mechanisms

India-UK Joint Economic and Trade Committee (JETCO):

  • JETCO was established on January 13, 2005 to develop a strategic economic relationship following the Joint Declaration “India-UK towards a new and dynamic partnership” between the then Prime Ministers of the two countries in September 2004.
  • 12th Round of India-UK FTA negotiations were held in India from 8-31 August 2023.

The Economic and Finance Dialogue (EFD):

  • EFD was established on 4 February 2005 to strengthen the financial and economic relationship between India and the UK.
  • The Dialogue is chaired by the Finance Minister and the UK counterpart and discusses sustainable economic development, structural reforms, reform of financial systems and markets, improving regulatory frame-works and international development.
  • The 12th round of EFD was held on 11 September 2023 in New Delhi.

Defence and Security cooperation

Joint Exercises and visits

Ex Ajeya Warrior: -

  • This India-UK bilateral exercise is conducted biennially at company group level alternatively in India and UK.
  • The 7th edition of Ex-Ajeya Warrior was conducted at Salisbury Plain Training Area (SPTA) from 27 April to 11 May 2023 in which the Indian Army Team participated along with the British Army.
  • The Joint Exercise aims to share best practices & build positive military relations between both the two Armies.

Exercise Konkan: -

  • Konkan is an annual bilateral exercise conducted between IN and RN(Indian Navy and Royal Navy). Exercise Konkan 2023 edition was held from 20-22 March 2023 in the Arabian Sea off the Konkan Coast.
  • The exercise enhanced mutual cooperation, improved interoperability between the two navies and developed greater synergy and confidence in the IN and RN operating together for maritime missions.

Ex Cobra Warrior- 2023: -

  • Indian Air Force (IAF) participated in a multi-national air exercise Cobra Warrior 23 at RAF Waddington, UK from 01-27 March 2023. Other participants in the exercise were the USA, Saudi Arabia, Finland and Belgium.

Institutional mechanisms

Defence Consultative Group meeting (DCG):

  • DCG is held at the level of Defence Secretary and the UK counterpart.
  • The 22nd DCG meeting took place in the UK on 3 October 2023.
  • Both sides considered new areas for defence industrial cooperation and explored emerging domains such as cyber and Artificial Intelligence. They committed to working together for strengthening the bilateral defence relationship.

Counter Terrorism Dialogue:

  • The 15th India-UK CT Dialogue was held in London on 4-5 April 2022.

Cyber Security Dialogue:

  • India-UK Cyber Security Dialogue was held in London from 11-12 April 2022.

Science & Technology, Research & Innovation

Institutional mechanisms

Science and Innovation Council (SIC):

  • Science and Innovation Council (SIC), is apex body to review overall bilateral scientific cooperation (except strategic sector) between two countries and it is held once in two years alternatively in India and the UK.
  • SIC reviews bilateral scientific collaboration of DST, DBT, MOES, CSIR, DAE, ICMR, ICAR, Ministry of Education, ICSSR with counterpart UK agencies.

Education and students

  • Education cooperation is an important pillar of India-UK Bilateral relationship as envisaged under India-UK Roadmap 2030.
  • Since 2015-16, the number of first year enrolment of Indian students in the UK Universities have been increasing.
  • India and UK signed Mutual Recognition of Academic Qualifications Memorandum of Understanding on 21 July 2022, giving a fillip to cooperation in the education sector between the two countries

Health

  • India-UK bilateral cooperation in mitigating the effects of COVID-19 Pandemic has been significant.
  • The joint research and development of the COVID-19 vaccine, under a licensing agreement between UK-based AstraZeneca and Serum Institute of India, is an unprecedented example of India-UK cooperation in addressing global issues of concern.

People to people exchanges

  • India and UK signed the Migration and Mobility Partnership (MMP) Agreement on 4 May 2021 with the intention to address swifter movement of working professionals between the two countries - an important element of India-UK economic partnership.
  • On 16 November 2022, the Young Professional Scheme was announced on the side-lines of the G20 Bali Summit. Under the scheme, 3000 visas will be provided every year to graduates between the age of 18-30 to get 2-year visa to live and work in each other’s country.
  • The UK has a large Indian diaspora of 1.864 million as per 2021 Census and forms 3.1% of the total population of the UK, which is 59.597 million.
  • The Indian diaspora has made valuable contributions in the areas of academia, literature, arts, medicines, science, sports, industry, business, and politics. The House of Commons currently boasts 16 members of Indian origin, and there are 23 peers of Indian origin in the House of Lords.
  • As per the report ‘India in the UK: The diaspora effect’ prepared by Grant Thornton and FICCI, there are over 65,000 companies owned by Indian diaspora.

Important articles for reference :

India UK Free Trade Agreement

RSTV Perspective-India-UK FTA

India and UK

Sources:

PRACTICE QUESTION

Q.With reference to Military Exercises of India, consider the following pairs:

Military Exercise                             Participating Countries

1. Ex Ajeya Warrior                        India and France

2. Exercise Konkan                         India and UK(United Kingdom)

3. Ex Cobra Warrior- 2023           India and Russia

How many of the above pairs are correctly matched?

(a) Only one (b) Only two

(c) All three (d) None

Answer: B

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