India’s ties with the UK are at an interesting crossroads. Regardless of the direction taken, relations seem poised to move in an upward trajectory.

Historical Context and Recent Developments

• Long Intertwined Histories: India and the UK have shared a complex historical relationship spanning centuries.
  • In 1947, India was declared independent from British colonialism.
  • In 1950, India decided to remain in the Commonwealth of Nations after becoming a Republic.
  • In 2004, the bilateral relationship was upgraded to a strategic partnership.
  • In 2010, the relations were elevated to “Enhanced Partnership for the Future”.
• Brexit Impact: The Brexit process initially led to a lack of attention on bilateral ties between India and the UK.
• Post-Brexit Focus: After Brexit, India plays a key role in the UK’s “Global Britain” aspirations.
• 2022 Upgrade: Ties were upgraded to Comprehensive Strategic Partnership in 2022.

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Role of Political Dynamics

• UK Elections: General elections are held in UK (predicted Labour Party to be victory)
• Labour Party Shift: Labour Party under Jeremy Corbyn perceived as antagonistic towards India. 
  • However, the Labour Party under Keir Starmer seeks closer relationships with India and the British Indian community.
• British Indian Community: 1.8 million people contribute over 6% to the British economy.

India-UK Economic and Trade Relations

• Current Trade: Current bilateral trade is almost £40 billion.
• FTA Negotiations: India-UK Free Trade Agreement (FTA) negotiations aim to double bilateral trade by 2030. 
  • Benefits for India include textiles, apparel, and gems sectors.
• Challenges: India’s high tariffs (100-150% on automobiles and scotch whiskies), UK’s desire for greater access to Indian services market, and India’s seek for greater mobility for skilled professionals.

India-UK Strategic and Defense Cooperation

• Indo-Pacific Tilt: The evolving strategic landscape of the Indo-Pacific has resulted in a British pivot towards the Indian Ocean. 
  • This is documented in the UK’s Integrated Review Refresh (IR Refresh 2023) strategy that reinforces the UK’s “Indo-Pacific tilt”, and emphasizes cooperation with “like-minded” partners such as India to support a rules-based order.
• Joint Activities: Joint military exercises, enhanced naval interoperability, collaboration in maritime domain awareness, counterterrorism cooperation, and Humanitarian Assistance and Disaster Relief (HADR) activities.
  • Ajeya Warrior Exercise, Konkan Exercise and Indradhanush Exercise are joint military exercises between India and UK.
• Defense Spending: UK plans to increase defense spending to 2.5% of GDP by 2030. 
  • In 2023, the bilateral relations upgraded to 2+2 mechanism.

Technology and Innovation Cooperation

• Artificial Intelligence: Collaboration in critical areas including Al.
• Semiconductors: British firm SRAM & MRAM Technologies pledged Rs 30,000 crore investment in India’s semiconductor ecosystem.
• Computing: Cooperation in high- performance computing.
• Cyber Security: Enhanced Cyber Partnership and annual Cyber Dialogue

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Other Collaboration Areas

• On Climate Action: Both countries are collaborating to strengthen research and design partnerships aimed at decarbonisation. 
• On Cybersecurity: Both nations cooperate through an Enhanced Cyber Partnership. 
  • Besides the US, Britain is the only country with whom India holds an annual Cyber Dialogue.
• Additionally, fintech, telecom, startups and higher education are important areas. 

Geopolitical Considerations

Future Prospects

• Cooperation: Potential for smoother cooperation under new Labour leadership.
• Free Trade Agreements (FTA): Both countries are advancing for FTA negotiations.
• Global Role: The UK as a P5, G7 and Five Eyes member continues to enjoy outsized global influence, while India is the world’s fastest-growing economy and most populous country. 

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Conclusion

With Brexit finally out of the way, the India-UK partnership has begun to blossom. However, there is uncertainty about Britain’s commitment to Indo-Pacific tilt, and hence requires a collective approach for the Indo-Pacific. There is also a wide scope to increase cooperation in defense and technology sharing.

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