India-UK ties: much to build on, Pg18.

Key Highlights:

• British PM Keir Starmer is visiting India for bilateral talks with PM Narendra Modi and to attend the Global Fintech Summit.
• The visit reciprocates PM Modi's trip to the UK in July, during which the Free Trade Agreement (FTA) was signed.
• Bilateral trade between India and the UK stood at approximately USD 56 billion in 2024 and is projected to double by 2030.
• The India-UK FTA is expected to provide Indian businesses with competitive market access in sectors like textiles, leather, engineering goods, and auto parts.
• There are approximately 170,000 Indian students in the UK, and several UK universities are planning to establish campuses in India under the New Education Policy.

Detailed Insights:

• The India-UK FTA has bipartisan support in the UK, highlighting the strength of the relationship.
• In a global environment marked by uncertainties, India and the UK aim to be reliable partners, with the FTA serving as a foundation for further cooperation.
• The Indian diaspora in the UK, comprising about 2.6% of the population, significantly contributes to various sectors and forms a "living bridge" between the two nations.
• The Comprehensive Economic and Trade Agreement (CETA) provides duty-free access to approximately 99% of Indian exports, benefiting MSMEs and boosting job creation.
• A Defence Industrial Roadmap aims to foster collaboration in co-design and co-production of defence products to meet the demands of both countries and the global market.
• The Young Professionals Scheme allows 3,000 young professionals from each country to live and work in the other for up to two years, promoting skills transfer and career growth.
• An India-UK Science and Innovation Council (SIC) facilitates bilateral relationships in science, technology, and innovation, with a joint research program valued at 300-400 million pounds.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers, such as tariffs and quotas, to promote trade and economic integration.
• MSMEs: Micro, Small, and Medium Enterprises, which are businesses that maintain turnovers and employee numbers below certain limits.
• Bilateral Trade: The exchange of goods and services between two countries.