New Delhi: The UK India Business Council (UKIBC) has suggested a list of ambitious goals for the next British government to undertake, which include a defence manufacturing partnership, free trade, labour mobility and a partnership on artificial intelligence, semiconductors and quantum computing.
“We recommend that, where feasible, the UK government reviews and ensures that export licensing rules are aligned with and support the UK’s ambitions for a strong defence manufacturing, technology creation, trade and investment partnership with India,” the UKIBC said in its report published Thursday.
The UKIBC, a strategic advisory and policy advocacy organisation that works with businesses to expand UK-India trade and investment, laid down 10 recommendations for the next British government to accomplish to boost ties between New Delhi and London.
The council has recommended that Whitehall should “prioritise” completing and ratifying the negotiation of a UK-India Free Trade Agreement (FTA) on goods and services at the earliest.
“Bilateral trade between the UK and India was £39 billion in FY 2023-24, an increase of 4.8 percent (or £1.8 billion in current prices) from the previous year. Indian businesses employ more than 1,05,000 people in the UK, while UK businesses employ more than 6,60,000 people in India,” the report said.
It added: “India is the second largest investor in the UK and the UK remains a major source of FDI into India. The numbers are strong but there remains scope for improvement.”
According to India’s Ministry of Commerce and Industry, the UK was India’s 15th largest trading partner in goods between April 2024 and June 2024, with trade touching $1.7 billion so far.
Starting in January 2022, New Delhi and London have completed 13 rounds of negotiations on an FTA, with the last taking place in January this year.
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Elections stalled FTA talks
While reports suggest that the two countries are close to finalising an agreement, elections in both have delayed any further action on the discussions. India’s general elections were held between 19 April and 1 June this year. Meanwhile, in May, UK Prime Minister Rishi Sunak called a snap general election. It is scheduled to take place on 4 July.
The UKIBC has also recommended that London pursue a “two-way labour mobility agreement” with New Delhi to help businesses move employees between the two countries in accordance with requirements.
Media reports suggest that a mobility agreement has been one of the stumbling blocks for the completion of the FTA negotiations. Such an agreement could potentially allow easier access for Indians to work in the UK and vice versa.
The council has also urged the next government to commit till at least the end of the next Parliament to keep open the graduate visa route for Indian students to remain in the UK after their education.
According to the report, Indian students made up 20 per cent of the 6,79,970 international students who chose to study in the UK in 2021-22. International students brought about £41.9 billion to the British economy in 2021-22.
However, the Conservative Party under Sunak is reported to have had plans to restrict the number of individuals who are issued a graduate visa. This allows students who have studied in the country a two-year or three-year visa based on their qualifications.
Indian students in the UK are some of the biggest beneficiaries of the graduate visa programme.
(Edited by Radifah Kabir)