EAM Visit United Kingdom (UK)

Syllabus: GS2/IR

Context

• The External Affairs Minister (EAM) paid an official visit to the United Kingdom.

About

• Both leaders discussed India-UK relations, especially the Free Trade Agreement (FTA), technology cooperation, people-to-people ties, and global issues like the Ukraine conflict.
• Progress on Roadmap 2.0 to energize the Comprehensive Strategic Partnership was reviewed. 
• Reaffirming India-UK Ties: The visit reinforced the Comprehensive Strategic Partnership, focusing on political, economic, and people-to-people collaboration in a changing global landscape.

Brief on India-UK Relations

• India-UK Comprehensive Strategic Partnership: Upgraded in 2021 with a 10-year Roadmap.
  • India-UK has 2+2 Foreign and Defence Dialogue.
• Trade Relations: India is the UK’s 11th largest trading partner, while the UK ranks 14th for India.
  • Currently, bilateral trade stands at GBP 42 billion, and the balance is in India’s favour with Britain’s trade deficit with India amounting to GBP 8.3 billion in 2023.
  • FTA negotiations started in 2022, and aims to double bilateral trade by 2030.
• Defence and Security: UK contributed only 3% of India’s defence imports in the last decade.
  • India aims to diversify from Russian defence imports & develop indigenous defence industries.
  • The UK can aid in technology transfers & advanced defence capabilities.
  • Open General Export Licence (OGEL) (2022) – UK’s first such license for an Indo-Pacific country, easing military tech exports to India.
  • Joint Exercises: Ex Ajeya Warrior, Exercise Konkan, Ex Cobra Warrior.
• Multilateral Collaboration: Indian Ocean Rim Association (IORA) (India – Member, UK – Dialogue Partner).
  • Indian Ocean Naval Symposium (IONS) (Both UK & India – Members).
  • Indo-Pacific Oceans Initiative (IPOI) (India & UK co-lead Maritime Security pillar).
  • The UK supports India’s bid for a permanent seat in the UN Security Council (UNSC).
  • India and the UK cooperate within the G20 on global trade, economic stability, and climate change.
• People-to-people ties: Rise of Indian-origin politicians.
  • Indian Diaspora considered a “model minority”, excelling in multiple fields.
  • British Indian Community: Over 1.6 million (2.5% of UK’s population).

Challenges: 

• Key Issues in FTA Negotiations: India’s demands greater mobility & visa access for skilled professionals.
  • The UK demands Lower tariffs on automobiles and alcohol and Greater access for the services sector.
  • UK’s carbon tax and India’s FDI restrictions & regulatory complexities.
• Geopolitical Differences: India’s neutral stance on Russia-Ukraine war vs UK’s strong opposition to Russia.
• Khalistan & Extremism Concerns: Attacks on the Indian High Commission in London in 2023.
• Visa & Immigration Policies: Strict UK visa policies for Indian professionals and students. Also concerns over illegal immigration and overstaying visas.
• Illegal immigration: Over 100,000 illegal Indian immigrants remain unresolved due to the lack of a migration agreement.

Way Forward

• Expediting Free Trade Agreement (FTA).
• Agreement on Migration and Mobility.
• Enhancing Strategic Ties in the Indo-Pacific.
• Strengthening Defense & Security Cooperation.

Source: PIB