UKIBC Lays Out Ambitious Roadmap for Next British Government's India Engagement

The UK India Business Council (UKIBC) has unveiled a comprehensive set of recommendations aimed at strengthening the economic and strategic relationship between the UK and India.

The proposals, outlined in a recent report, encompass a wide range of initiatives, from defence manufacturing partnerships to free trade agreements, labor mobility arrangements, and collaborations in cutting-edge technologies like artificial intelligence, semiconductors, and quantum computing.

Key Recommendations​

1. Defence Manufacturing Partnership: The UKIBC advocates for aligning export licensing rules to foster a robust defence manufacturing partnership with India.
2. Free Trade Agreement (FTA): The council urges the prioritization of completing and ratifying a comprehensive UK-India FTA on goods and services, citing the significant potential for growth in bilateral trade.
3. Labour Mobility Agreement: To facilitate the movement of skilled professionals between the two countries, the UKIBC recommends pursuing a "two-way labour mobility agreement."
4. Graduate Visa Route: The council calls for a commitment to maintain the graduate visa route for Indian students, recognizing their substantial contribution to the UK economy and educational landscape.
5. Technology Collaboration: The UKIBC highlights the importance of partnerships in emerging technologies like AI, semiconductors, and quantum computing, emphasizing their potential to drive innovation and economic growth.

The report underscores the existing strength of UK-India economic ties, noting that bilateral trade reached £39 billion in FY 2023-24. Indian businesses employ over 105,000 people in the UK, while UK businesses employ more than 660,000 in India. However, the UKIBC emphasizes the significant room for further expansion.

While both countries have made progress in FTA negotiations, completing 13 rounds since January 2022, recent elections in both nations have temporarily stalled further discussions. Additionally, the issue of labor mobility remains a point of contention in the FTA negotiations.

According to India's Ministry of Commerce and Industry data, the UK was India's 15th largest trading partner in goods between April and June 2024, with trade reaching $1.7 billion. This figure highlights the substantial existing trade relationship and the potential for growth through deeper collaboration.

The UKIBC's recommendations offer a bold vision for the future of UK-India relations, emphasizing the importance of strategic partnerships, trade liberalization, and technological cooperation. As both countries navigate political transitions, the implementation of these proposals could shape a new era of economic and strategic collaboration between the UK and India.