India - UK trade relations 2022-23

India - UK trade relations 2022-23

Introduction

 

Secured financial condition of a country brings peace of bmind to  it's citizens obviously. A development of a country means development of each citizen of that country

If any country needs to grow globally, it has to make some favourable decisions, negotiations with some developed countries and have friendly relations with most of them. This makes the country and in turn the citizens of that country financially secure and develop further

Today we are going to peek in this topic. So let's dive in… 

I've chosen  UK-India Current  relationships just because of two reasons :

1.  Rishi Sunak who is from Indin origin, has become new Prime minister of UK few months ago.

2. Rishi Sunak is the Son-in-law of an Indian daughter,the great and beloved,Sudha Murthy ma'am.

So let's dive in now… 

Over the last six months, Rishi Sunak, the UK Prime minister , has made several decisions that have been favourable for India. These decisions cover a wide range of areas, from trade to education to agriculture. In this article, we will take a closer look at each of these decisions and examine their impact on India-UK relations.

1. Trade Agreement Negotiations

Rishi Sunak has been a strong advocate for the UK-India trade agreement negotiations. In June 2021, he visited India to accelerate the deal with an aim to double trade between the nations by 2030. The UK and India have been negotiating a trade deal since 2017, and the latest round of negotiations began in May 2021. The agreement is expected to provide mutual benefits for both countries, including increased trade in goods and services, improved market access, and greater investment opportunities.

The proposed trade deal will cover a wide range of sectors, including agriculture, pharmaceuticals, and renewable energy. India is the world's fifth-largest economy, and a trade deal with the country could provide a significant boost to the UK economy. It is estimated that the deal could increase the UK's GDP by up to £1 billion per year.

2. Indian-Origin Citizens' Visa Relaxations

The UK government announced new visa rules for Indian-origin citizens, which include easier access to work and education opportunities. The changes are expected to benefit around 3,000 students and professionals from India every year. The changes to the visa rules include the removal of the cap on the number of PhD-level students from India who can apply for visas, as well as the expansion of the Graduate Route visa.

The Graduate Route visa allows international students to stay and work in the UK for up to two years after completing their studies. The expansion of this visa will benefit Indian students who have completed their undergraduate or postgraduate studies in the UK. The visa changes are expected to improve the flow of talent between India and the UK and strengthen the education and research partnerships between the two countries.

3. Financial Support for Indian Businesses in the UK

The UK government announced a £1 billion package of support for Indian businesses in the UK affected by the Covid-19 pandemic. The scheme is expected to help businesses and protect jobs in the country. The package includes a range of measures, such as grants, loans, and tax relief, to support Indian businesses that have been hit hard by the pandemic.

The financial support is expected to help Indian businesses in the UK to recover from the pandemic and continue to contribute to the UK economy. The scheme is also expected to strengthen the relationship between India and the UK, as it demonstrates the UK's commitment to supporting Indian businesses in the country.

4. Investment in Indian Technology Startups

The UK government announced a £1 billion investment in Indian technology startups. The investment is expected to help Indian startups scale up and develop their businesses. The investment will be made through the UK-India Investment Fund, which was set up in 2017 to support the growth of Indian startups.

The investment in Indian startups is expected to create new jobs and drive innovation in the technology sector. The UK has a strong track record in supporting technology startups, and the investment in Indian startups is expected to benefit from this expertise.

5. Launch of UK-India Tech Partnership

The UK and Indian governments launched the UK-India Tech Partnership to promote collaboration between the two countries in the technology sector. The partnership is expected to lead to increased trade and investment in the sector. The partnership will focus on areas such as fintech, artificial intelligence, and 5G technology.

The partnership will provide a platform for Indian and UK businesses to collaborate and share knowledge and expertise. It is expected to create new opportunities for Indian and UK companies to work together and develop innovative solutions to global challenges.

6. Support for Indian Students in the UK

The UK government announced a new scholarship scheme for Indian students studying in the UK. The scheme is expected to provide financial support to Indian students and encourage more Indian students to study in the UK. The scheme, which is worth £3 million, will provide 70 scholarships to Indian students over the next three years.

The scholarship scheme is expected to help Indian students who may face financial barriers to studying in the UK. It is also expected to encourage more Indian students to study in the UK and contribute to the country's education sector.

7. Removal of Restrictions on Indian Mango Imports

The UK government removed restrictions on Indian mango imports, which had been in place since 2015 due to concerns over pests. The decision is expected to benefit Indian mango farmers and increase trade between the two countries. India is the world's largest producer of mangos, and the UK is a significant market for Indian mango exports.

The removal of the restrictions is expected to provide a significant boost to the Indian mango industry and support the livelihoods of millions of Indian farmers. The decision also demonstrates the UK's commitment to promoting free trade and supporting Indian agriculture.

8. Increase in Indian Investment in the UK

Rishi Sunak has been actively encouraging Indian businesses to invest in the UK. In March 2021, Indian companies invested £568 million in the UK economy, making it the largest source of foreign direct investment in the country. The UK is an attractive destination for Indian companies due to its stable political and economic environment, as well as its skilled workforce and access to global markets.

The increase in Indian investment in the UK is expected to create new jobs and support economic growth in the country. It is also expected to strengthen the relationship between India and the UK and promote greater trade and investment between the two countries.

9. Increase in UK Investment in India

Rishi Sunak has also been encouraging UK businesses to invest in India. In February 2021, the UK government announced a £1 billion package of trade and investment deals with India, which is expected to create jobs and boost economic growth in both countries. The package includes investments in areas such as renewable energy and healthcare.

The increase in UK investment in India is expected to create new jobs and support the growth of Indian businesses. It is also expected to strengthen the relationship between India and the UK and promote greater trade and investment between the two countries.

10. Support for India's Covid-19 response

The UK government has provided significant support to India's Covid-19 response, including the donation of ventilators and other medical equipment. The UK has also provided financial support to India's vaccine manufacturing sector. The support provided by the UK has helped India to tackle the Covid-19 pandemic and protect the health and wellbeing of its citizens.

The support provided by the UK has strengthened the relationship between India and the UK and demonstrated the UK's commitment to supporting India in times of crisis. It is expected to pave the way for greater collaboration between the two countries in the future.

11.India and the United Kingdom have recently announced their collaboration on green bonds and pension fund reforms. This partnership aims to promote sustainable investments and provide long-term financial security to investors.

Green bonds are financial instruments used to fund projects with environmental benefits. By issuing green bonds, the government and companies can raise funds for projects such as renewable energy, clean transportation, and sustainable agriculture. The collaboration between India and the UK on green bonds will help increase the availability of these instruments and promote sustainable investment practices.

In addition to green bonds, the partnership will also focus on pension fund reforms. Pension funds play a critical role in providing financial security to retirees. By reforming pension funds, the governments of India and the UK aim to make them more efficient and sustainable. This will ensure that retirees have access to a stable source of income throughout their retirement.

The collaboration between India and the UK on green bonds and pension fund reforms is a significant step towards building a more sustainable future. These initiatives will help channel investments towards sustainable projects and ensure long-term financial security for investors. They will also support the development of green infrastructure and create employment opportunities in the renewable energy sector.

Overall, this partnership is a positive development for both India and the UK, as well as for the global community. It demonstrates a commitment to sustainable development and the importance of collaboration between nations in achieving this goal.

12.The United Kingdom has recently committed to supporting India's bid for permanent membership in the United Nations Security Council (UNSC) and the reform of the UNSC. This is a significant development that highlights the growing strategic partnership between the UK and India.

India has been seeking permanent membership in the UNSC for many years, and this move by the UK is a major boost to its efforts. As a permanent member of the UNSC, India would have a greater say in global affairs and be better positioned to promote its interests on the world stage. It would also enable India to play a more active role in maintaining international peace and security.

The UK's commitment to supporting India's bid for permanent membership in the UNSC comes at a time when the two countries are deepening their strategic partnership. The UK has identified India as a key partner in its post-Brexit global strategy, and the two countries are working together on a range of issues, including trade, defense, and climate change.

The reform of the UNSC has been a long-standing issue, with many countries calling for greater representation and participation in the decision-making process. The UK's commitment to supporting UNSC reforms is an acknowledgment of the need to address this issue and make the UNSC more representative and effective.

Overall, the UK's commitment to supporting India's bid for permanent membership in the UNSC and the reform of the UNSC is a positive development for both countries and for the global community. It demonstrates a commitment to multilateralism and the importance of working together to address global challenges.

In conclusion, Rishi Sunak's decisions over the last six months have been favourable for India. The decisions cover a wide range of areas, from trade to education to agriculture, and are expected to have a significant impact on India-UK relations. With continued collaboration and support, the relationship between India and the UK is expected to grow and benefit both nations in the years to come.