In News:

• Prime Minister Narendra Modi held a telephone conversation with new British Prime Minister Rishi Sunak.
• During conversation, both the leaders have agreed on the importance of an early conclusion of a “comprehensive and balanced” trade agreement.
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What’s in Today’s Article:

• India-UK Bilateral Relation

India-UK Bilateral Relation

• The bilateral relationship was upgraded to a Strategic partnership in 2004.
• During the May 2021 virtual summit between the PMs of both the countries, an ambitious ‘Roadmap 2030’ was adopted.
  • This roadmap will pave a way to elevate bilateral ties to a ‘Comprehensive Strategic Partnership’.
• India was identified as a priority relationship for the UK in the 2021 Integrated Review and was invited by the UK as a guest to last year’s G7 in Carbis Bay.

Economic engagements

• During the May 2021 virtual summit, India and UK launched an ‘Enhanced Trade Partnership’ (ETP).
  • This was launched to unleash the trade potential between these two countries.
• Trade
  • The total trade between India and the UK stood at $17.5 billion.
  • UK is India’s 17th largest trading partner during the period of FY 2021-2022.
  • In January 2022, India and the UK formally launched negotiations for an ambitious free trade agreement (FTA).
    • The FTA aims to increase the bilateral trade to $100 billion by 2030.
  • Both sides were expected to sign on the FTA by Diwali but they missed the deadline due to lack of consensus and the transition in the UK political leadership.
• Investment
  • Indian investment in UK: India invested in 99 projects and created 4,830 new jobs in the UK to retain the position of second-largest source of FDI after the US in 2020.
  • UK’s investment in India: UK is the 6th largest inward investor in India after Mauritius, Singapore, USA, Netherlands, Japan.
    • It has a cumulative equity investment of US $ 31.6 million (April 2000- December 2021), accounting for around 6% of all FDI into India.

Defence

• During the 2015 visit of PM Modi to UK, a new Defence and International Security Partnership (DISP) was pledged by leaders of both the countries.
• In October 2020, India and the UK reached the final stages of agreeing on a key defence logistics pact which will help in reciprocal use of airfields, bases, spares and supplies.
• After the pact, India can access ports and military bases from the Garrisons in the Gulf to Keeling Island in the South Indian Ocean and strategic military locations such as Busan and Okinawa.

Cultural Linkages

• 2017 was celebrated as the India-UK year of Culture to mark the 70th anniversary of Indian independence.
• Indian PM describes the connection between people of both the countries as a ‘living bridge’.
• In August 2020, Britain announced its decision to mint a coin to commemorate Mahatma Gandhi.

Indian Diaspora

• As per 2011 census approximately 1.5 million people of Indian origin are in the UK equating to almost 1.8 percent of the population and contributing 6% of the country’s GDP.
• The government of India awarded Pravasi Bhartiya Samman to British MP of Indian origin Priti Patel and British Member of the European Parliament (MEP) of Indian origin Neena Gill in 2017.