The Deepening India-U.K. Economic and Strategic Ties
UPSC Relevance
Prelims: International Relations (India-UK relations, Post-Brexit scenario); Indian Economy (Foreign Trade, Investment); Social Issues (Indian Diaspora).
Mains:
General Studies Paper 2 (International Relations): Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests. The India-UK relationship is a key bilateral partnership.
Key Highlights from the News
The economic relationship between India and the UK is strengthening maturely, without any fuss.
British Prime Minister Keir Starmer's recent visit to India further solidified this relationship.
Key achievements of the visit:
A defence deal worth £350 million.
Indian companies will make investments of £1.3 billion in the UK.
Two prominent UK universities will open campuses in India.
Cultural cooperation: An agreement was reached for Indian films to be shot in the UK.
While India's trade discussions with the U.S. and the E.U. are often contentious, the relationship with the UK is smoother and more pragmatic.
There is still significant growth potential in trade between the two countries. Increasing trade with the UK will help India mitigate the impact of high tariffs from the US.
The fact that Indians are the largest ethnic minority in the UK is also a key factor in this relationship.
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