What India gains from revitalised ties with UK

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What India gains from revitalised ties with UK

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• May breakthrough: India-UK summit in May 2021 is almost a breakthrough in relations. The Roadmap-2030 is quite ambitious, and part of a continuing engagement.
• UK's new stance: Brexit has given it a new approach to world affairs, and a pivot to Asia. It's seeking new partnerships. India is one of the first major efforts by Boris Johnson government.
• Efforts: While PM Johnson could not attend the 26th Jan event in India, outreach to CPTPP and ASEAN continued. Britain wants to join CPTPP, and has got a coveted dialogue partnership (separate from EU) with ASEAN. [CPTPP - Comprehensive and Progressive Agreement for Trans-Pacific Partnership]
• India UK relationship deepening: Both are working to deepen the relationship across the spectrum in (i) defence and security, (ii) trade and investment, (iii) people to people engagement, (iv) climate change, and (v) pandemic. 

1. On defence, India won't gain much from increased naval presence of British Navy in IOR, as Britain couldn't force China on the Hong Kong issue; only gains will be in defence technology sharing, and access to Information Fusion Centre on FOIP (Free and Open Indo-Pacific)
2. LCA technology and air defence ships technology is important, as Rolls Royce MT30 engines are proven ones (HAL and UK RR already have a collaboration; India may benefit in indigenous production of aircrafts and ships)

• On trade: India-UK aren't big trading partners, and India must go for an FTA with due protection for services and social mobility (the issues that led to Brexit in the first place!). 

1. UK proposes 3000 work visas for Indians for 2 years as part of the 'Mobility and Migration Agreement'
2. In return, India will take back the lakhs of Indians staying in UK illegally (always a sore point as exact nationality identification of many of these never could be done, a precondition set by India to readmitting)

• On Education: Many Indian students who wanted to study in the UK left for Germany once visas and costs became more stringent; it is time for UK to reclaim that market. 
• On trade and investment: The UK announced a 1 billion pound trade deal, of which 25% is the new SII investment in a vaccine facility in UK! India is a large job creator in UK, via its FDI. 

1. Most investment into India is by people of Indian origin. Can UK bring more, for Atmanirbhar Bharat and manufacturing jobs?
2. Tricky issues stuck in retrospective taxation - Vodafone and Cairns - need to be resolved fast as UK loses faith in India due to such lingering problems.

• On emerging areas: India may gain if new technologies for climate change and health, and green tech upgrades for manufacturing can be brought.
• Reverse FDI: UK is projecting AstraZeneca-SII as a model, but the risk for India remains - reverse FDI. If that happens, then FTA is of little use to India. 
• The diaspora: India-UK relationship derives strength from lakhs of members of Indian diaspora, and some of them keep invoking domestic issues there. How that can be handled, remains to be seen.
• On fugitives: Many economic fugitives easily escape to Britain, which is unlike the UAE that extradites such people. 
•  Summary: There is a good scope for mutual benefit, but a lot of work still to do.

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