The UK-India Bilateral Relationship – Key Issues and Challenges
Submission by Observer Research Foundation, New Delhi
A relationship often characterized as one that continues to operate in the shadow of a colonial past, the United Kingdom and India have displayed a distinct desire to transcended bygones, and cooperate on issues of bilateral and global significance. The focus of this submission is to take a look at the key areas that have defined ties between the two nations in recent times and the challenges that this relationship confronts
Highlighting the defining aspects of the relationship between two countries would involve discussions on societal and economic issues, security and strategic policies and priorities, and defence cooperation. A simultaneous analysis of the interplay between these spheres is fundamental, to gain a holistic perspective.
VISAS AND MOVEMENT OF PEOPLE
Perhaps one of the most important issues of contention between the two nations in the recent past has been that of immigration and visa policy. This statement can be testified by the fact that a British parliamentary committee convened last month to look into relations between Britain and India, and focused specifically on the impact of Britain’s visa regime.1 Tensions between the two countries have heightened as a result of the UK’s exclusion of India from a revised list of nations eligible for easier student visas.2 Given that the number of Indian students in the United Kingdom have been dwindling continuously over the past few years, down to 16,000, sentiments among aspirants are understandably low.3 The exclusion has, in fact, been recognized by the National Indian Students and Alumni Union (NISAU) UK as an effective categorization of Indian students as ‘high risk’, and adds to pre-existing concern within the Indian government, who have emphasized the need for a more welcoming immigration regime on several occasions.4 This response has been met by an oddly indifferent reaction from the British Home Office, who quoted statistics regarding the acceptance of Indian Students being as high as ever, when questioned about India’s exclusion.5
India also remains disgruntled with the United Kingdom over the pressing issue of extradition. India has requested the UK to extradite 28 fugitives since 2002, with Britain only complying to one of these requests so far.6 Among these 28 individuals are high-profile criminals Vijay Mallya and Nirav Modi, both accused of defrauding Indian banks of hundreds of millions of pounds. Despite the existence of an extradition treaty between the two nations, that was entered into force in 1993, negotiating the complicated procedure of extradition from the United Kingdom has eluded India on multiple occasions.7 Often, the absence of enthusiastic cooperation from the British justice system, and law enforcement agencies has frustrated Indian authorities.
Another noteworthy issue is that of the presence of illegal Indian migrants in the United Kingdom. The failure to sign a Memorandum of Understanding on the return of illegal migrants during Indian Prime Minister Narendra Modi’s visit to the United Kingdom in April, was at the very least, surprising, given that the agreement was seen to be a key element of the visit.8 This failure could prove to be a major obstacle in the path of a closer economic relationship between the two nations, given that the growth of ties was to be based upon closer greater Visa access for Indians, in exchange for the return of illegal migrants.
TRADE AND INVESTMEMT
Despite the obstacles arising from societal issues, the United Kingdom and India have remained important trading partners, by any measure. Bilateral investment between the two nations is strong, and companies in both countries continually identify and develop opportunities in each other’s economies. Given that the India-EU Free Trade agreement is on its deathbed, India has very noticeably turned its attention to the possibility of securing a post-Brexit trade deal with the United Kingdom. The benefits of such an agreement would be manifold, including but not limited to boosting trade by lowering tariffs and aligning standards.9 The realization of such an agreement would not be easy, and would require far tighter alignment of bilateral economic architecture such as the UK-India CEO Forum, and the Joint Economic and Trade Committee.10 However, if made a reality, the agreement would definitely accentuate the already steady growth of trade between the two nations – 18 billion pounds in 2017, up by 15 per cent from the previous year.11
While the implicit assumption surrounding the United Kingdom and India – countries seen as parts of the global north and south respectively – is that the lion’s share of investment would flow from the European nation into India, it is important to note that this statement is not true. While failing to sign the MoU on illegal migrants, Indian Prime Minister Narendra Modi’s visit to the UK in April did lead to several agreements and initiatives across the sectors of technology, trade and investment. A range of new investment from India, worth more than 1 billion pounds, is set to create and/or safeguard 5750 British jobs for the economy, as part of a India-UK trade partnership announced by the British government in April itself.12 The United Kingdom, meanwhile, recently announced the creation of a Fast Track Mechanism to identify, and subsequently resolve specific issues faced by Indian companies with operations in Britain, or those looking to establish the same.13 The two countries have also engaged in dialogue under the Joint Working Group on Trade, that supports a shared commitment to a global rules-based order, and the fundamental role of the WTO to underpin the same.14
London also announced the creation of UK-India Tech Hub, that will include a network of individuals and programs designed to facilitate the development of investment and ideas for the prosperity of both nations, as well as their relationship.15 Similar initiative is also observed in the announcement of a joint Technology Summit that will bring together innovators, scientists, entrepreneurs, and policy makers that will address common concerns in the field of governance of future technology, as well as on related fields such as cyber security and security of information and communication technology (ICT) products and services.16
SECURITY AND POLITICAL
Growing cooperation between the United Kingdom and India in the security of the cyber space has been a subject of recent discussion, with the development of critical infrastructure in an area of shared interest being of primary concern. The two countries have agreed on an overarching framework to define their cyber-relationship, that enables the development of a common understanding of international cyber-crime.17 It also promotes user confidence in the security of ICT products.
Elevated to the level of Strategic Partnership in 2004, the relationship between the two countries has also increasingly emphasized the need to regulate safe nuclear energy, with an arrangement agreed upon by the Atomic Energy Regulatory Board of India (AERB), and the Office for Nuclear Regulation of Great Britain.18 The UK has consistently supported India’s requests to join the United Nations Security Council, and the Nuclear Suppliers Group.19
The two nations have also discussed the ways and means to commonly approach the global threat of terrorism and radicalism. The UK has taken up India’s stance of asking Pakistan to act against perpetrators of the 2008 Mumbai and 2016 Pathankot terror attacks.20 Both nations have also called for the strengthening of existing international framework for legally authorized counter-terrorism, through the adoption of the Comprehensive Convention on International Terrorism. The UK has stated the need to work on strengthening the already established strategic dialogue on home affairs, including organized crime.21 A Memorandum of Understanding on the Exchange of Information for the Purposes of Combating International Criminality and Tackling Serious Organized Crime was also signed during Narendra Modi’s visit.
Strengthening Maritime Cooperation, especially in the Indian Ocean Region, is an increasingly important concern for the two countries. Recognizing the rapidly changing global environment, with the growth of multipolarity and strategic competition arising from differential priorities of involved stakeholders, policy makers have emphasized the need to explore possibilities for deeper collaboration and infrastructure projects in the Indian Ocean Region. Chinese efforts at developing strategic infrastructure in the region have created instability and uncertainty in the region, and questions of either collaborating with or combating the Asian Giant’s approach, has also become a subject of importance. Maritime Communities of both nations have highlighted the similarities between the Indian Navy and the Royal Navy, and have recommended the need to ramp up multi-track diplomacy and dialogue between the countries.23 India has also encouraged the United Kingdom’s membership of the Indian Ocean Naval Symposium, and the Indian Ocean Dialogue, to further dialogue alongside other parties that have a stake in the region. Discussions have also emphasized the need to collaborate on enhancing India’s “Blue Economy” concerns. Finally, the development of an advanced Maritime Domain Awareness (MDA) framework has been a crucial joint objective.24 Cooperatively tackling illegal activities through joint training, naval and patrols, greater burden sharing, intelligence exchange to track pirate vessels, and through multilateral organization frameworks are all approaches of priority, going forward.
Defence cooperation, within the framework of the Defence and International Security Partnership, agreed in November 2015, has been a key aspect of the recent relationship between the UK and India.24 The two nations endeavor to build a strong capability partnership, based on best practices in Counter Improvised Explosive Devices, air force training, maritime safety, Counter Terrorism, aircraft carriers, shipbuilding, and UN Peacekeeping.25 Efforts are currently underway, with interactions between subject specific experts aiming to increase air safety collaboration and future counter terrorism requirements.26 Besides the aforementioned MDA framework, the nations have also agreed upon the need to develop a deeper relationship between the UK Hydrographic Office, and the Indian Navy Hydrographic Office.27
The UK has stated its readiness to support development of India’s defence capabilities through Make in India, and technology transfer, by supplying requisite technology and equipment, and by promoting joint research and innovation.28 An important Memorandum of Understanding was also recently announced, between Bharat Dynamics and Thales UK, on technology transfer opportunities for missile systems.29 The joint development of an Advanced Hawk jet trainer by BAE Systems, based in the UK, and Hindustan Aeronautics Limited was also agreed upon.30 Further, the April meeting between Prime Ministers Theresa May and Narendra Modi led to the recognition of the need for stronger Research and Development cooperation and joint training. Training. The meeting between the two Prime Ministers resulted in the extension of the current Defence Equipment Requirement MoU.31 Interactions between the Indian Army Design Bureau, and the Defence Equipment and Support/Army Capability Branch through their Defence Equipment Sub-Group have been encouraged by high-level functionaries of both nations.32 Finally, the United Kingdom and India are considering the upgradation of their bilateral General Security Arrangement.33
RECOMMENDATIONS
At this point, it is important to look at Indian expectations with regards to the aforementioned issues. As noted above, India has been left frustrated by the UK’s Visa and extradition policies. In both these realms, India expects greater cooperation from the British authorities, and a deeper understanding of the grievous nature of the activities carried out by Indian fugitives in the UK. Greater cooperation with British law enforcement agencies, and legal institutions is also a major priority. India also expects the UK to extend easier Visa services to Indian students, at the very least, not to mention, recent calls for the reintroduction of the two-year post-study work visa, hence enabling international students to gain work experience in the UK, and earn enough to pay back outstanding education loans.
In terms of trade and commerce, India is far more appreciative of the nature of the recent developments within bilateral exchange, and expects to see even greater initiative from British companies and financial institutions in the fields of investment. This is especially important, considering the fact that Britain is already India’s third largest source of foreign investment. The signing of an effective Post-Brexit Free Trade Agreement, with favourable terms for both parties, is a major priority in the upcoming years. Besides this, India hopes for further agreements and MoUs in the fields of technological cooperation, research, and technology transfer.
Cohesion between strategic and maritime communities of the two countries already being on the up, India expects the UK to develop a clearer strategy on China’s ascendancy as a major global economic and geopolitical actor. India will hope to see greater involvement of the UK in the cooperative administration of the Indian Ocean Region, and also expects Britain to step up its commitments to the ‘Blue Economy’ of the region. Continued developments in the field of strategic agreements on defence cooperation are expected, not to mention the desire for an increase in the frequency and significance of joint exercises and training programs between the armed forces of the two countries. India will also expect the fulfillment of existing defence technology agreements, and the furtherance of this particular aspect of the relationship as part of its military modernization drive.
Diplomats and experts from both nations have talked about the ‘lack of trust’ that permeates their bilateral relationship. The reality of India’s constantly shifting priorities, coupled with the fact that some important British voices have complained of the absence of a true strategy to approach its former colony, only re-emphasizes the difficulty and volatility of the relationship.34 Several issues, discussed above, have created hindrances to furtherance of the relationship, and have caused the entrenchment of a certain level of mistrust. However, recent developments in several sectors have been extremely encouraging, and the two nations should aim to build upon these efforts. Given that the United Kingdom is expected to exit the European Union next year, it is on the lookout for viable alternative trade and strategic partnerships. An India in the process of rapid and radical modernization, and of emerging as a true global power, seems to like a good bet.
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