The UK has been on the 18th position when it comes to a trading partner of India and third as an investor after Mauritius and Singapore.
India is becoming an attractive market in the world, especially for businesses looking for an alternative to China. Given the current situation, UKIBC (UK India Business Council) has too agreed on the same.
UKIBC’s first Indian group CEO, Jayant Krishna mentioned the UK founding a new trade relation globally and also focussed on India establishing itself as a global player to which India will be considered as a key priority for trade and investment by the UK government.
In 2019-2020, the bilateral trade between the UK and India was USD 15.5 billion against USD 16.87 billion in the previous fiscal.
What is the reason for strengthening?
Jayakant Krishna in an interview with PTI remarked about the growth of the trade relations between the two countries once they emerge out of the coronavirus pandemic and that UK businesses have been eager to aid the “Aatmanirbhar Bharat” mission.
Jayant Krishna commented, “UK and India have started looking at opportunities emanating from the business sentiments worldwide to explore manufacturing supply chain possibilities as alternatives to China”.
He also verbalized the large investments done by UK Industries in India and how alternate destinations are being explored for the global supply chain. He stated, “UK businesses are and will look to India as an incremental base for manufacturing and research & development”.
How will it compliment both the countries?
The UK has been looking forward to the sectors highlighted by our Prime Minister such as infrastructure, pharma, energy, manufacture, space, and defense. This could be fit for offerings by UK and demands of India hence being a win-win situation.
CEO also mentioned, “There are all areas ripe for India-UK collaboration in creating ‘Aatmanirbhar Bharat’, underpinned for both nations strong track-record in technology and innovation.”
Another chief point discussed was the introduction of the United Kingdom’s new point-based rank immigration system. As per this immigration system, points are allotted for, qualifications, specific kinds of skills, salaries, and occupations. The visa is then provided to only those who secure enough points. This creates a just system and a better route for Indians to study or work in the UK.
The UK is also the second biggest research partner in India with a joint research estimate of 400 million pounds.
Recently Memorandum of Understanding (MoU) was signed between UKIBC and the Government of Gujrat that will sight to amplify the business environment and strengthen the ties.