House of Commons Foreign Affairs Committee (FAC) Inquiry

Global Britain and India

Written evidence from the Foreign and Commonwealth Office

INTRODUCTION

1. On PM Narendra Modi’s April 2018 visit to the UK, the British and Indian Prime Ministers reaffirmed that “the UK and India have a natural ambition to reinforce our Strategic Partnership, based on shared values, common law and institutions, as the world’s oldest and largest democracies.”[1]

2. India matters to Global Britain. It is the world’s fastest growing large economy, and already the third largest measured by purchasing power parity. We are top four investors in each other’s economies and Indian companies create 110,000 jobs in the UK. India has an important voice in multilateral fora, especially through the Commonwealth, United Nations and G20.

3. And Global Britain matters to India. We are the 5th biggest economy in the world,[2] the 5th largest exporter and ranked one of the best places in the world to do business. We share a global outlook and commitment to the rule of law. As members of the UN Security Council, G8, G20, NATO, we remain a key partner in the maintenance and development of the Rules-Based International System, including in the Indo-Pacific. We are the only permanent member of the UN Security Council who spends both 2% of our GDP on defence, and 0.7% GNI on development.  We are prioritising the UK-India Technology Partnership because it’s a strength of both countries, and it is the future.

4. There is what PM Modi described as a “Living Bridge” between us. Our personal, professional, cultural and institutional ties have shaped each other’s countries and give our relationship a unique depth. The Commonwealth Heads of Government Meeting in London in April, attended by PM Modi, reflected our shared values and common interests.

5. The FCO’s strategic objectives are to protect our country, our people and our interests, project our influence and promote our prosperity overseas. Our strategic engagement with India reflects those priorities, and we have structured this evidence to the Foreign Affairs Committee accordingly: first, we look at our work to accelerate Britain and India’s prosperity. Secondly, to enhance our partnership on global governance, defence and security. And finally, to support our enduring people-to-people partnership.

6. India’s size and diversity are extraordinary, and India is growing fast. Nine of its 29 States have a population larger than the UK. By 2035, India’s five largest cities will have economies of comparable size to middle income countries today[3]. India’s middle class is booming, and expected to grow rapidly from the current 10% of the population. India’s internet users will grow from 28% of the population in 2016, to 59% by 2021.

7. So we have changed how we engage. When the FAC last launched an enquiry on India twelve years ago, the Joint Economic and Trade Committee (JETCO) and the Economic and Financial Dialogue (EFD), the UK/India Education Research Initiative (UIERI) were fledglings. DFID’s largest bilateral aid programme was in India. And we had Deputy High Commissions in only three Indian cities.

8. Today, the FCO network in India is configured to engage at scale. It is the UK’s largest overseas network, and the largest diplomatic network in India. Our High Commission in New Delhi is supported by Deputy High Commissions in Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kolkata and Mumbai, with a further trade office in Pune and a Nationals Assistance Office in Goa.

9. The breadth of UK interests in India is reflected in the number of HMG partners working in India, including: MoD, DFID, DIT, Home Office, DCMS, BEIS, HMT, DfE, DHSC, DEFRA, NCA, as well as the Scottish and Welsh Governments. The British Council have offices in ten cities across India. We have more Visa Application Centres in India (18) than any other country. This written evidence draws on contributions from partners to give a representative picture of the breadth of One HMG activity.

10. Our bilateral structures are more extensive and effective than ever, reflecting a mature bilateral relationship. JETCO held their 12th meeting in January 2018 and the 9th Economic and Financial Dialogue was held in 2017. They have been augmented by a Defence and International Security Partnership, Dialogues or Working Groups at Ministerial or senior official level on Home Affairs, Energy, Counter Terrorism, Counter Proliferation and Cyber. We jointly announced a new Technology Partnership during PM Modi’s visit in April.

11. As HMG, our role is often to convene, encourage and help direct traffic across that Living Bridge. One area of particular success has been the strengthening of research and innovation links. The cumulative value of joint UK India collaborations in the area of science and technology will have risen from £1m in 2008 to over £400m by 2021.

12. 2019 is an important year for Global Britain, as we leave the EU, and for India, as the world’s largest festival of democracy in India’s general election. We are working closely with India to ensure our relationship goes from strength to strength after Brexit. Prime Minister Modi said in April 2018 that there would be no dilution in the importance of the UK to India post-Brexit, and that it offers opportunities to further increase trade ties.

13. It is inevitable, and right, that we should reflect on some of the darker moments of our shared past, such as the forthcoming centenary of the Jallianwala Bagh Massacre, and how far we have travelled since. But it is even more important to look to our shared future.

14. As two outward-looking global powers, with independent foreign policies, a proud Parliamentary tradition and vigorous freedom of expression, it is inevitable that there will be issues on which we disagree.

15. But our mature relationship, load-bearing inter-governmental structures, shared investment in the Rules Based International System, global outlook, wise heads and an energetic Next Generation beyond Government spotting opportunities will all help to take us forward.

1. PROSPERITY

16. India is the fastest growing of the world’s major economies, growing by 8.2% in Q2 2018. It is currently the seventh largest economy in the world, and is projected to be the second largest in the world by 2050. This means India’s share of the world economy will increase from about 3% to 15% over the next three decades. India’s middle class is also likely to grow.

17. There is huge opportunity in India’s growth over the medium-term, for them, for the world, and for us. Our Global Britain vision is of the UK as a great global trading nation, promoting prosperity through free trade and open markets. The UK is the 5th biggest economy in the world, the 5th largest exporter and ranked one of the best places in the world to do business. We are at the forefront of science and technology, and championing industries of the future.

18. Prosperity sits at the heart of the UK-India relationship. HMG’s vision is for genuine, collaborative and profitable partnership with India, bringing both opportunity and prosperity to our peoples. As this chapter shows, our work reaches across technology, trade, investment, finance, innovation and research. For example, the UK India economic and financial relationship is discussed and renewed each year as part of the Economic and Financial Dialogue (EFD) between the Chancellor and India’s Minister of Finance. Our trade and investment relationship is also discussed annually by the Secretary of State for International Trade and India’s Minister of Commerce at the Joint Economic Trade Committee (JETCO). The UK supports efforts to strengthen UK-India bilateral trade, through partnerships that draw on UK expertise, including in Financial Services, Ease of Doing Business, Energy, Urban Development and Skills. The FCO provides advice, support and coordination to the full range of government departments doing business with India.

19. Recognising India as a rising global power, with strong economic and strategic capability, the UK has ended traditional aid to India and established a partnership fit for the 21st century. As part of this transition, smart new British development cooperation focuses on three key dimensions across the prosperity relationship:

-         Developing India’s future markets to create and share prosperity;

-         Working with India on managing its development transition, and

-         Working with India as a global power and responsible player to strengthen and reshape the global system with institutions that are more effective and help provide much-needed global public goods.

UK-INDIA TECHNOLOGY PARTNERSHIP

20. The Indian technology sector is huge and growing. Digital transformation will play a big role in India’s economic growth. India's internet users are already forecasted to grow from 28% of the population in 2016 to 59% by 2021, partially aided by the growing number of smartphone users. In 2016 the technology sector accounted for 7.7% of GDP and employed 10 million people in India. In the technology services sector, exports will rise by as much as 9% over the current fiscal year and the domestic market is expected to grow by 10-12% as large, listed companies in the country accelerate digital tech spending[4]. The IT sector alone will grow by up to 50% faster than the rest of the economy. By 2022, nearly 10% of the Indian workforce will be employed in jobs that do not exist today. India’s stated aim through the National Institute for Transforming India (NITI Aayog) is to be the ‘AI garage for 40% of the world’, providing AI solutions to emerging economies.

21. The UK tech sector is no less important. There are 1.64 million tech jobs in the UK and the digital sector is creating jobs twice as fast as the non-digital sector. The UK is the world’s ninth largest manufacturer. Productivity in the UK manufacturing sector grows three times faster than the rest of the economy and 70% of UK industrial research and development is in this sector. As we leave the EU, we have made clear our commitment to be at the forefront of technology and innovation. PM Modi views India’s foreign partnerships in part through the lens of how technology can support India’s (socio) economic growth. The UK is well-placed to respond.

22. Existing UK-India tech collaboration is already delivering results. In 2015 the UK exported £358m and imported £846m of digital services to/from India. Indian investment, especially in manufacturing and high tech industries, supports over 110,000 UK jobs in sectors that grow one third faster than the rest of the economy. As part of the PM Modi’s April visit, technology firms safeguarded 5,750 UK jobs. Indian tech firms add at least 3000 jobs annually in the UK and large tech firms with a strong presence already include TCS, HCL, Infosys, Wipro and Firstsource.

23. To ensure this cooperation goes from strength to strength in April we announced a new UK-India Technology Partnership. This is a unique opportunity for us to connect our tech strengths, ecosystems and growth. Grand Challenges in HM Government’s Industrial Strategy cover Artificial Intelligence and Data, Clean Growth, the Future of Mobility and Ageing, as well as future manufacturing, food and health. The Government of India has similar priorities with initiatives in Manufacturing, AI, Digital, Future Transport and Health. Through this Partnership we will expand existing science, technology and innovation links and work together to develop solutions to global challenges. We will also address the challenges technology itself brings around data, ethics and skills. Working together as two technologically innovative, forward-looking nations, the Tech Partnership will boost growth, jobs and productivity in the UK and India.

24. Implementation of the Tech Partnership will be underpinned by up to £14m from the Prosperity Fund and includes the following activity:-

-         Strengthening our manufacturing relationship, we are considering an Advanced Manufacturing Centre, through which we could support our respective industrial strategies and drive growth, jobs and productivity. India is the sixth largest manufacturer and it needs to find one million manufacturing jobs a month to support new entrants to the job market.

-         Identifying and pairing businesses, venture capital, universities and other delivery partners, to provide access routes for British and Indian entrepreneurs and SMEs to each other’s markets. Regional teams will ensure the impact is felt across the breadth of expansive tech sectors in both nations, and that successful approaches in one region can be shared and adapted in others.

-         Piloting ‘Tech Cluster Partnerships’ which connect regional technology clusters in the UK with rapidly growing clusters and states in India. For example, pairing the Midlands Engine with Maharashtra, covering Pune, with a focus on the Future of Mobility, and pairing the Northern Powerhouse with Karnataka, covering Bengaluru, focusing on Artificial Intelligence and Data, augmented and virtual reality, and advanced materials.

-         Supporting UK and Indian investors to create the UK-India Tech Alliance. Supported by NASSCOM[5] and TechUK, it is a space for major bilateral investors to share experience and discuss solutions to industry wide-challenges including skills.

-         Working with DCMS, we will shortly establish a Tech Hub in the British High Commission in New Delhi to facilitate and support bilateral trade and investment in the most innovative technology.

-         Working with the Government of India to introduce pilots of UK medical Artificial Intelligence technology into Indian health clinics. This will support PM Modi’s Ayushman Bharat healthcare scheme, which is intended to provide care for 500 million people and deliver 150,000 health and primary wellness centres across India.

25.     Through the UK-India Start-up Fund, DFID is additionally working with the Government of India to strengthen the start-up ecosystem, leveraging UK strengths in innovation and technology. It will channel investments in job-creating tech-driven start-ups. Initiatives include an exchange programme for 300 Indian and UK students and young professionals, academic links, and tech transfers. The Start-up Fund will create 1,000 jobs, benefit a million men and women and generate trade and investment opportunities for UK businesses.

26.     Announced in April 2018, the UK Government and the Government of India have now established an India-UK FinTech Dialogue to support the sharing of knowledge and information regarding policy development and regulation around FinTech innovation.We will also support Indian and UK FinTech firms to identify opportunities in each other’s markets. This will enable close government-to-government collaboration to share experiences and drive forward policy innovation.

TRADE

27. The UK-India trade and investment relationship is mature, healthy and important to both countries. Bilateral trade was worth over £18bn in 2017, a 17% increase on 2016. Since Q1 2017, total goods and services exports to India experienced five consecutive quarters of positive export growth. This is a significant improvement after a decline in exports during Q3 2015 to Q3 2016. In 2017 (the latest available rankings), India was the UK’s:

-         17th largest trading partner (accounting for 1.4% of total UK trade)

-         20th largest export market (accounting for 1.1% of all UK exports)

-         14th largest import market (accounting for 1.7% of UK imports)

28. Our departure from the EU is an opportunity for increased global trade. As part of this strategy we are sequencing future Free Trade Agreement (FTA) negotiations. While India is not in the first tranche of countries for an FTA, it is a high priority trading partner for the UK and we are taking steps now to strengthen the trade relationship and pave the way for a potential future agreement.

29. As part of this, the Secretary of State for International Trade and Indian Commerce Minister established a UK-India Joint Working Group on Trade. This group completed a Joint Trade Review (JTR) in January 2018, which identified areas to increase trade, for example addressing non-tariff barriers and greater government-to-government engagement. During Prime Minister Modi’s visit to the UK in April 2018, both countries agreed to forge a new India-UK Trade Partnership to build on these JTR recommendations. The Secretary of State for International Trade and Indian Commerce Minister will meet next at the Joint Economic and Trade Committee in Delhi in December 2018.  Additionally the Prime Minister has appointed a Trade Commissioner for South Asia, who is also our Deputy High Commissioner in Mumbai in New Delhi.  And the UK-India CEO Forum brings together top CEOs from both countries, reporting to Prime Ministers on business issues and opportunities.

30. As a result, the Department for International Trade have three top-level trade, economics and prosperity objectives with India:-

-         Shared commitment to improving Market Access, building a Trade and Investment Partnership;

-         Support for Government of India market reforms, supported by FCO and DIT ODA programmes;

-         Promotion activities built around a Technology Partnership – delivering a collaborative response to the Grand Challenges of the Industrial Strategy which include chronic disease, ageing, clean growth and mobility.

31. The UK Government is therefore active in India to both implement these agreed priorities and promote UK businesses. DIT are building more and firmer foundations in sectors where the UK has a strong offer, aligned with UK Industrial Strategy priorities and the opportunities afforded by the Indian Government’s flagship programmes such as Make in India, Digital India and Smart Cities.

32. The UKIPO Intellectual Property attaché works closely with UK creative and tech businesses looking to trade in the Maharashtra region on appropriate copyright protection. This includes working with the Indian government under the UK-India IP Memorandum of Understanding to make sure the existing IP regime is fit for purpose in the digital economy.

33. To support further export growth, in January 2018 UK Export Finance (UKEF), the UK’s official export credit agency, announced an increase which more than doubled their appetite to support trade with India. UKEF has a market risk appetite in the region of £4bn to support UK companies exporting to India and for Indian buyers of UK goods and services, with local currency financing available in Indian Rupees, allowing Indian companies to offset currency risk when buying from British exporters. India is a very active market for British SMEs, and since 2016 UKEF has provided support to export contracts worth over £35m through their product range aimed at small businesses.

34. As with any relationship, there is room for improvement. British companies do not always find it easy to operate in India, and we have a small number of high-value trade disputes undergoing international arbitration. The UK has an open and honest dialogue with India on these and we are committed to working with the Government of India productively to resolve them. India has gone up by 30 places on the World Bank’s Ease of Doing Business index in the past year and is now ranked 100th. We are also taking steps to reduce non-tariff barriers (in life sciences, IT and food and drink). With this in mind, the UK signed an MoU with India on the Ease of Doing Business in November 2016 and UK experts continue to share expertise with India, in partnership with central and state organisations.

Investment

35. The UK and India have a strong investment relationship. The UK has been the largest G20 investor in India since 2010. The stock of UK FDI in India was £13.2bn in 2016, 8.8% higher than in 2015. In 2016, India accounted for 1.1% of total UK outward FDI stock (the United States was the top destination for UK FDI in 2016, accounting for 19.9% of total UK outward FDI stock, followed by Netherlands (11.7%) and Luxembourg (9.3%)). The Confederation of British Industry estimates that UK companies are creating one in every 20 jobs in India’s organised private sector. This includes well-known investors such as, BP, BT, G4S, HSBC, JCB, Standard Chartered, Unilever and Vodafone – but also new investors such as Dyson, who launched their products in India in 2017 using the UK-India Fast Track Mechanism.

36. Similarly, India had the 4th largest number of investment projects in the UK in 2017-18 – more than France or Germany. India was the 3rd largest job creator. According to DIT statistics, FDI projects from India created or safeguarded over 10,000 jobs in the UK in 2017-18. A broad range of Indian investors already consider the UK their home. This includes well-known companies such as Tata Sons (owners of TCS and Jaguar Land Rover), Wipro, Infosys and Genpact alongside many others.

37. The UK is taking steps to improve further the strong investment relationship. This includes:

-         Beginning a new dialogue on investment to improve our mutual understanding of priorities and review future opportunities for cooperation.

-         A recently established  reciprocal Fast Track Mechanism for Indian investments into the UK, to provide additional support to Indian businesses.

-         Recruiting a UK cyber security industry expert to be based at the High Commission in New Delhi. The role will involve sharing British expertise and connecting Indian private and public sector organisations with cutting-edge UK companies who can supply their specific requirements.

38. HMG’s new smart development cooperation with India is significantly about investment: an approach where we lend or invest money rather than give it, and in time our loans and investments are repaid to the UK Treasury. Alongside our investment, we also fund technical assistance – drawing on British and international expertise. Areas where UK development cooperation is already working in partnership with India include:

-         Investment in growing businesses to create jobs and make a lasting difference to people's lives, principally through the UK’s development bank CDC Group plc, which has £1.3bn invested in more than 300 companies in India;

-         Developing skills to help increase productivity for employment and enterprise;

-         Supporting reform in the energy sector to help accelerate India’s adoption of renewable energy and the expansion of power generation.

Finance

39. Expanding India’s infrastructure is a key priority for Prime Minister Modi. Urbanisation will support India’s growth, with the McKinsey Global Institute estimating that more than a third of Indians live in cities by 2030. The output of large Indian cities will come to resemble that of middle-income nations – Delhi’s GDP will be comparable to that of Philippines, Mumbai’s to Malaysia and Hyderabad’s to Morocco. This represents a massive infrastructure requirement – about £3.4tn will be required by 2040.

Attracting international capital will be important to achieving these ambitions. London’s deep and liquid capital markets are playing a pivotal role. The global offshore rupee-denominated ‘masala’ bond market was launched in the UK July 2016, when Housing Development Finance Corporation (HDFC), a leading Indian financial conglomerate, became the world’s first Indian entity to issue a masala bond, which was listed on the London Stock Exchange (LSE). Since HDFC’s landmark first issuance, several other Indian companies have tapped London’s capital markets. These issuances have generated finance for Indian infrastructure projects including in railways, roads and renewable energy. The LSE is now established as the leading global centre for Indian companies to raise finance for infrastructure and this is a position we want to maintain.

40. Further collaboration is supported by the India UK Financial Partnership (IUKFP). Launched by the Chancellor of the Exchequer and the Indian Finance Minister in July 2014, this private sector group aims to increase collaboration between the financial sectors of the UK and India. The IUKFP has published several reports with recommendations that have been adopted by regulators and shaped joint work, including on India’s new insolvency regulations, capital markets, infrastructure finance, the internationalisation of the Indian Rupee, and developing India’s green finance market. The UK is continuing to support India both in raising infrastructure finance in London and internationally, and in developing financial markets, through partnerships that draw on UK expertise.

41. The UK has played a particularly prominent role in leveraging finance to support environmentally friendly economic growth.

-         The Green Growth Equity Fund (GGEF) is a joint infrastructure fund to invest in the Indian renewable energy sector. HMG and the Government of India each committed an anchor investment of £120m to the GGEF, to crowd-in investment from the City of London and elsewhere. GGEF will help accelerate achieving India’s target of 175GW of renewable energy capacity by 2022 and also invest in other related sectors such as clean transportation, water and waste management. The fund manager and capitalisation of the fund were both announced during PM Modi’s visit in April.

-         Through its International Climate Finance, the UK is supporting India to pursue clean economic growth. This is a part of the UK’s pledge to provide at least £5.8bn of International Climate Finance to developing countries globally between 2016 and 2020. The UK, as the largest donor, is contributing to the £587m Clean Technology Fund investment plan in India. The Clean Technology Fund promotes scaled-up financing for demonstration, deployment and transfer of low-carbon technologies. In India it is supporting the development of over 3 GW of new installed solar power capacity and associated transmission infrastructure. This will help reduce GHG emissions and contribute to India’s NDC, increase energy security in the province, develop local industry and create jobs. 

-         UK Climate Investments (UKCI) is a joint venture between BEIS and the Green Investment Group to scale-up private finance flows in Indian and sub-Saharan African markets. In October 2017 UKCI announced its first investment (£5.2m) in a 60MW solar project in India – providing clean electricity to the grid and contributing to India’s 120GW solar target. This co-investment in partnership with Lightsource BP, the UK’s largest solar developer, marked their first deal in India and helped facilitate their move into this market. 

SCIENCE

42.     A central pillar of the UK-India Prosperity agenda is science and innovation. In the last ten years, the UK has risen from 4th to 2nd place among India’s international collaborators, and now spans the full spectrum of research and innovation from the arts to astronomy, advanced technology to antimicrobial resistance. There are now nearly 300 bilateral and multi-country research partnerships involving over 70 top UK universities, institutes and laboratories, and over 100 Indian institutions, engaged with more than 100 businesses and industry groups. As well as the increasing quantity, UK-India research is high quality. Field Weighted Citation Impact for UK-India collaborations is higher than USA-India, Germany-India, or UK-China collaborations. A recent report, commissioned by UKRI India, shows that nearly 90% of researchers evaluated the impact of UK-India funding to be very high or high. It shows that the joint funding results in high volumes of output with more than three-quarters claiming that the joint research only took place because of the UK-India grant. 80% of respondents said UK India research relationship would become more important in the future.

43.     The importance of the relationship and its soft power potential is reflected in the April 2018 Prime Ministerial Joint Statement where we committed to sharing our experience and knowledge to tackle global challenges as a “force for good in an uncertain world”. The UK Government has a number of initiatives underway to ensure we continue this strong relationship.

44.     In addition to Newton-Bhabha, recent UK Research Initiatives grant awards include cutting edge civil nuclear energy research. New programmes are being commissioned with the UK leading a European partnership to work with India in the social sciences and humanities and with established and rising research powers from Sweden to South Africa on sustainable development. Other recent examples include India’s work with Cancer Research UK on low cost approaches to cancer treatment and with UKRI to use biological research and data to improve the lives of small and marginal farmers anywhere in the world. DFID’s South Asia Research Hub supports a wide range of cross-sectoral regional research projects, including in India, on gender, modern slavery, climate change, agriculture and inclusive growth.

45.       The UK’s Global Challenges Research Fund (GCRF) supports collaborations with international researchers as part of the global effort to address complex development challenges. Moreover, the UK Space Agency continues to seek new ways to collaborate with India in the Space sector for innovative solutions that benefit both our economies and address global challenges. The collaboration to launch and utilise the data from a revolutionary new Synthetic Aperture Radar (SAR) satellite will provide affordable Earth observation data that could be used to solve global problems and bring new commercial opportunities across a growing range of industries.

ENERGY AND CLIMATE CHANGE

46. India’s demand for energy is expected to more than double by 2040 and it has ambitious plans to scale up its low carbon and renewable energy capacity. But, with over 300 million people still without access to electricity and per capita demand growing from an extremely low base, coal will remain dominant for the foreseeable future.

47. The UK-India relationship on energy is crucial to increasing the pace of progress and has the potential to create new opportunities in low carbon technologies such as smart grids and energy storage. We are working with India in this area, sharing our own experience of low carbon transition in its energy sector.

48. The central pillar of this relationship is the annual UK-India ‘Energy for Growth Dialogue’, led by BEIS Secretary of State and India’s Minister of Power and Renewable Energy. The second meeting took place in London in September 2018, and discussed collaboration on a range of issues including power, renewables, energy access and efficiency and oil & gas. India’s Minister of Power also attended and spoke at the global Zero-Emissions Vehicle summit in Birmingham on 11 September – following DIT Under Secretary of State Stuart’s visit to India’s MOVE summit earlier in the same week.

49. Additionally, DFID have a successfully collaborated with India on a Power Sector Reform programme over several years.  The UK continues to facilitate inward visits from Indian officials on a range of themes including energy, and outward visits including the International Energy Unit’s Senior Energy Advisor’s visit to provide technical advice relating to hydrocarbon licensing and exploration.

50. Our civil nuclear energy partnership is strong, and focuses on sharing best practices and technologies that contribute to safety, security, non-proliferation and future civil nuclear systems. UK-India civil nuclear cooperation is increasing, which will bring mutual benefits for prosperity. The UK and India signed a bilateral Nuclear Cooperation Agreement (NCA) in November 2015 during Prime Minister Modi’s visit; it was ratified and entered into force in early 2016.  Additionally, HMG also signed a Memorandum of Understanding in November 2015 with the Indian Department of Atomic Energy (DAE) regarding civil nuclear cooperation with the Global Centre for Nuclear Energy Partnership (GCNEP).

51. As part of our mutual commitment to lead the fight against climate change the UK is joining the Indian-led International Solar Alliance (ISA). We are scoping with ISA how UK expertise and private sector finance can be deployed to achieve ISA’s objective to mobilise investment of over US$1tn in solar energy by 2030.

II: GLOBAL GOVERNANCE, DEFENCE & SECURITY

52. The UK and India have a strong partnership on global security and defence. As we leave the EU, our Global Britain strategy means the UK is committed to continuing to play a leading role in the world stage to champion global security, prosperity and international rule of law. India will be a key partner for this work. As the Prime Minister said during in April ‘we want to work with India for our shared prosperity, our shared security and as a force for good in the world’[6].

53. The UK and India share a global outlook, underpinned by a shared commitment to the Rules Based International Order (RBIO) which remains the bedrock of global security and prosperity. In his key-note speech at this year’s Shangri La dialogue in Singapore, Prime Minister Modi warned of the ‘shifting plates of global politics’ but described a world ‘of inter-dependent fortunes and failures’ that ‘no nation can shape and secure it on its own’. He spoke of the partnerships needed to deliver our ‘common prosperity and security’ and that these should be underpinned by a ‘common rules based international order’. For the UK, the Foreign Secretary reinforced the significance we attach to the RBIO in his speech to the United States Institute for Peace on 21 August. He spoke of the need for ‘the strongest possible alliances between countries that share the same values’ to support the RBIO. Our shared values and close bonds with India allow us to work together on a range of issues – a partnership that we intend to act as a global force for good.

54. India prioritises global development issues and brings both practical solutions and thought leadership on delivering development in a democratic context. Their priorities include global development assistance for Africa and South Asia, renewable energy, especially solar, digital initiatives, financial inclusions and transporting lessons from poverty reduction. The UK can play a crucial role in partnering with India on issues such as democracy, development cooperation, multilateral reforms, digital skills, higher education, learning and research and diaspora.

55. As a highly active member of the multilateral community, we seek to work with India in a number of different organisations and institutions. In all, we share a common goal of promoting peace, stability and rights for all individuals. Where we disagree, we maintain a regular dialogue to ensure we understand each other’s positions and continue to promote our shared overall goals.

56. As this chapter shows, our cooperation is being put into practice on global governance, regional issues, defence and tackling global threats. The UK leverages a range of government departments to bring the best of UK expertise to our cooperation. Examples include our shared commitment to peacekeeping (where India is one of the largest troop contributors in the world and the UK provides the sixth largest budget in terms of assessed contributions), our counter-terrorism cooperation to make our countries and people safer, our commitment to maintaining the legal order for the seas and oceans based on the UN Convention on the Law of the Sea and our efforts to protect our environment through work on clean energy.

GLOBAL GOVERNANCE - UN

57. India was a founding member of the UN (originally as the British Raj, since 1950 as the Republic of India). It has been a member of the UN Security Council seven times – most recently in 2011-2012, and India provided the first female President of the General Assembly in 1953. India offers a regular budget contribution of nearly £14m annually, plus voluntary funding contributions. India remains one of the leading contributors of peacekeeping personnel, with the largest contingents serving in the Democratic Republic of Congo (MONUSCO) and South Sudan (UNMISS). On Human Rights, India was a serving member of the Human Rights Council between 2014 and 2017, and has had a sitting judge in the International Court of Justice (ICJ) since 2012, with their current mandate running to 2027.

58. As part of our Global Britain vision, the UK is committed to using its role as a permanent member of the UN Security Council to promote global security, prosperity and fundamental values of human rights, freedom and equality.

59. In light of transformational changes that have taken place over the last 70 years the UK recognises the need for the Rules Based International Order to adapt and renew itself. That is why the UK remains committed to a reformed UN Security Council with India as a permanent member, as well as to an enhanced role for India within the UN system. But we are clear that these rules need to be applied consistently if they are to safeguard and promote both prosperity and security. In this context the UK and India have reaffirmed our strong opposition to unilateral actions that seek to undermine the RBIO through force or coercion.

60. There are of course areas in which the UK and India do not agree within the UN. India continues to be an active member of the UN Special Committee on Decolonisation. The UK has disengaged with this Committee on the basis that it has now served its purpose, and that the territories under discussion have expressed their will with regards to governance. This year, India has supported the Mauritian position in our sovereignty dispute over the British Indian Ocean Territory. At the beginning of September, India was one of 16 countries (plus the African Union) who made an oral statement supporting the Mauritian position in the ICJ Advisory Proceedings relating to the detachment of the Chagos Archipelago from Mauritius in 1965 and the creation of the British Indian Ocean Territory (BIOT). We continue to engage India on the case, highlighting that BIOT brings a vital contribution to regional security and peace, and making clear the UK’s longstanding commitment to cede the territory to Mauritius when it is no longer needed for defence purposes.

GLOBAL GOVERNANCE - COMMONWEALTH

61. India has been a Commonwealth member since independence in 1947. India is the largest nation in the Commonwealth, and more than half of the Commonwealth’s population are Indian. Indian interest in the Commonwealth remains a key pillar to ensure the organisation thrives and delivers on the key priorities of its members. India contributed heavily to debate at this year’s Commonwealth Heads of Government Meeting in London (CHOGM). In particular, India offered its experience to the drive to ensure 12 years of quality education for all children. Further still, India doubled its contribution to the Commonwealth Technical Fund for Co-operation, placing a particular emphasis on small island states. During the Summit, India also offered capacity building through the National Institute of Oceanography in Goa.

62. Our role in the Commonwealth is an important part of Global Britain, and we are committed to building on the outcomes of April’s Heads of Government Meeting; the largest such gathering of its kind in the UK, to strengthen the organisation. India and the UK recognise the potential of the Commonwealth to deliver not only for ourselves, but for our partners within the grouping. Over the next two years while UK is Chair-in-Office, we will work closely with India to build on that potential and deliver programmes which impact the lives of our citizens. As Chair-in-Office, alongside the Commonwealth nations including India,  we will strive to:-

-         deliver the commitments set out in the official CHOGM communiqué and Leaders’ statement,

-         reinforce the three pillars of the Commonwealth including supporting continued reform of the Secretariat and

-         promote the Commonwealth’s place within the rules-based international system.

GLOBAL GOVERNANCE – COUNTER PROLIFERATION & EXPORT CONTROL REGIMES

63. The UK welcomes close, mutually beneficial trade with India in innovative and high technology goods, consistent with our international obligations. To enable this we were a strong advocate of Indian membership of international export control regimes, the Missile Technology Control Regime, the Wassenaar Arrangement and the Australia Group, all of which India is now a member.

64. The UK has supported India’s membership of the Nuclear Suppliers Group. All states in possession of nuclear materials and related technologies have an obligation to ensure their safety and security, and both the UK and India are committed to the achievement of this goal nationally and globally. The UK- India MoU regarding the Global Centre for Nuclear Energy Partnership cooperation provides a mechanism for the exchange of information and best practice related to this, and is of benefit to both countries.

65. We encourage India to continue to strengthen its non-proliferation credentials. To cooperate closely with regime members, to constantly adapt its export controls, to keep in step with new and emerging developments in science, technology and industry and to actively contribute to efforts to enhance global security and safeguards.

66. As a fellow State Party to the Chemical Weapons Convention (CWC), India, like the UK, is committed to the goal of ending the development, production, stockpiling and use of chemical weapons at any time, by anybody, under any circumstances. In April, India joined the UK in stating a shared commitment to strengthening the effective implementation of the Chemical Weapons Convention.

67. We were disappointed by India’s decision not to join the majority of countries in supporting a decision in June 2018 by the Conference of States Parties to the Chemical Weapons Convention designed to strengthen the implementation of the Chemical Weapons Convention. We encourage India to play a constructive role in the follow-up at the Conference of States Parties and Review Conference of the Convention in November.

REGIONAL – ALL OF ASIA

68. Both the UK and India recognise the global significance of the Indo-Pacific region. With a population well in excess of 4 billion, Asia will be the crucible in which the world of the 21st century is forged. Decisions taken by Asian nations will directly affect British security and economic interests.

69. The UK Government developed an ‘All of Asia’ approach that is broad, ambitious and focused on the future. It will allow us to protect UK interests, promote security, enhance prosperity and champion universal human rights, democratic values and the rule of law across the region. These are values which are shared by many of our partners including India.

70. The UK has over 50 diplomatic missions across Asia – nine of them in India, which remains our largest overseas network with full Whitehall representation. As part of our commitment to Global Britain, we are boosting the numbers of diplomats posted in the region to ensure we are fully represented, able to play a leading role in responding to global challenges and making the most of opportunities for our country.

71. India’s focus on its neighbourhood has been prioritised under Modi’s government through its ‘Act East’ policy. The Indian government’s stated aspiration for ‘security and growth for all in the [Indo-Pacific] region’ chime with our own and we encourage India, and others, to improve relations that support regional stability by tackling conflict and its causes in South Asia.

72. Decisions that India takes about its own reforms and economic development and degree of openness to the regional and global economy will start to have a greater impact on those countries with which India has closer economic relationships. We have identified trade, connectivity and regional integration as priority areas where the potential for positive development impact is greatest. DFID have identified impact and results and transparency as potential areas to expand collaboration where there is a UK comparative advantage and Indian interest in sharing expertise and experience.

REGIONAL – MARITIME

73. A secure, free, open, inclusive and prosperous Indo-Pacific is in the interest of India, the UK and the international community.

74. India’s interests increasingly lie in the maritime sphere given the Indian Ocean’s importance for strategic, economic and security goals. 90% of India’s trade by volume and 70% by value is transported by sea. India is a member of the Indian Ocean Rim Association (IORA), which promotes sustained growth and balanced development across the region. India participates in the Quadrilateral Security Dialogue (Australia, India, Japan, US) an informal consultative grouping which aims to keep the Indo-Pacific free and open for all nations and joins the US and Japan – two of its closest strategic partners – in the annual ‘Malabar’ naval exercise.

75. For the UK the Indian Ocean region is a vital part of the international networks on which we depend. British Indian Ocean Territory provides us a critical base from which we contribute significantly to regional security.

76. During Prime Minister Modi’s visit in April, the UK and India agreed to work together to tackle threats such as piracy, protect freedom of navigation and open access, and improve maritime domain awareness in the region. The UK welcomes an active role by India and collaboration with the region’s community to preserve stability, promote prosperity and ensure balance in this region. As a P5 member of the UN Security Council and as an upholder of the rules based international order, the UK contributes significantly to the ongoing security of the Indian Ocean, including through military and civilian means. We play an active role in maritime security in the Indian Ocean through military, multilateral and commercial engagement, capacity building and environmental and sustainable development. We want to cooperate more closely with India, and others, in the maritime domain to achieve a more secure and prosperous region. This includes partnering with India to support its plans for enhanced naval capability, particularly on integrated ship design and supporting the development of India’s Maritime Domain Awareness capability.

REGIONAL - CONNECTIVITY

77. South Asia today is one of the least-connected regions in the world. The Asian Development Bank estimates an infrastructure gap of over £1.3tn a year. Improving interconnectivity has considerable potential to increase trade, boost growth and reduce regional poverty levels.

78. India has made clear their commitment to improving regional connectivity. It is a recipient of infrastructure funding from the Asian Development Bank, the World Bank and the Asian Infrastructure Investment Bank and is actively engaged in several connectivity initiatives. India’s involvement is critical for the pace and success of these programmes.

79. The UK is heavily engaged on regional connectivity, prioritising initiatives where we can meet genuine need and add most value. Our focus has included energy, transport, IT connectivity and trade. We are delivering through large regional programmes in South Asia, key activities in India and a growing partnership with the Indian Government, IFI partners and regional organisations. This direct UK government engagement has been running successfully for the last six years and is programmed for a further four. Principally we will focus on the development of physical infrastructure, reducing red tape and regulatory burden to the private sector, and addressing the key aspects of the enabling environment including the relationships between countries.

80. A key part of UK involvement has been promoting international standards and best practice, such as responsible lending, good governance, appropriate project design, transparent procurement and inclusive sustainable development. We are seeking to work with India, China and other third countries to help ensure these standards are in place, in order to mitigate the risks of indebtedness, adverse social and environmental impacts, and unbalanced development.

81. The Belt and Road Initiative (BRI) acts as a point of difference between Beijing and New Delhi, in part because the China-Pakistan Economic Corridor covers Pakistan-administered Kashmir, disputed territory claimed by India. The UK recognises the potential of BRI in helping to meet Asia’s infrastructure needs whilst noting it is only one of many regional and sub-regional initiatives in Asia. The UK does not support commercial projects in disputed territories.

DEFENCE

82. Defence is a vital part of our relationship with India and was a key element of discussion during Prime Minister Modi’s visit to the UK in April 2018. Our countries have engaged well together for many years – including through land, air and maritime bilateral exercises – but we have transformed our relationship since 2015 when we agreed the UK/India Defence and International Security Partnership (DISP). The DISP has helped achieve a more positive, interlinked and mutually beneficial defence relationship. This ranges from military doctrine through to equipment collaboration and paves the way for greater commercial opportunities for both parties.

83. The DISP sets out the mechanisms by which the UK and India will elevate our defence relationship through establishing capability partnerships in strategic areas. These will allow the UK and India to work together across a spectrum of capabilities on which military effectiveness depends. They have created a structure that enables the UK and India to discuss mutual areas of interest more easily, including being able to more readily share information and deepen lines of conversation. Good progress is being made, with key areas for collaboration identified, including ship design, counter terrorism and UN peacekeeping. The partnerships will enable transfer of strategic capability between the UK and India, including defence technologies and manufacturing capacity in areas of mutual interest, including supporting Prime Minister Modi’s ‘Make in India’ campaign.

84. Current engagement also aims to share our Defence Transformation experiences with India, as well as deepening our doctrine and training cooperation.

-         In April, both countries agreed that the UK and Indian Armed forces should work together to share technologies, capabilities and equipment in order to respond to a range of complex and evolving threats.

-         Over the last year, the UK and India have also strengthened their naval and maritime activity, including enhanced Maritime Domain Awareness (MDA) through a bilateral technical agreement to exchange information on commercial shipping movements.

-         The UK and India have also developed cooperation between the UK Hydrographic Office and the Indian Navy Hydrographic Office.

85. The work on the DISP is driven by regular high-level engagement and an annual strategic dialogue between our Defence Ministers. The Indian Defence Minister, Mrs Sitharaman, is expected to visit the UK in the coming months.

86. Progress on the capability partnerships has been aided by single Service staff talks and senior visits (including visits this year by the former Minister for Defence Procurement, MOD Permanent Secretary, former Chief of the General Staff and Commander Joint Forces Command).

87. Our militaries will continue to take part in valuable joint exercises. Last year the Army exercised in India on Ex Ajeya Warrior and the RAF Aerobatic team displayed in India as part of Exercise Eastern Hawk. Later this year, the Royal Navy will exercise with the Indian Navy during the annual Exercise Konkan.

88. While our defence relationship is focused on addressing future threats and challenges in a changing world, we also recognise the historic links between our militaries. For example, over the last four years in particular we have worked closely with the Indian Government to ensure the very significant contribution of Indian troops to World War One is fully and appropriately recognised.

DEFENCE INDUSTRY PARTNERSHIP

89. The UK-India defence partnership encompasses developing industry-to-industry collaboration. Our engagement places capability and technology development at its core and harnesses the complementary strengths of both nations in defence manufacturing. The partnership makes use of the combined strengths of our respective private and public sectors to develop defence solutions for us in both home and shared export markets. 

90.  India has ambitious plans to develop its indigenous defence industry further and to attract Foreign Direct Investment into the sector. UK companies have shown some interest, but India’s current limit of 49% foreign ownership of companies together with a lack of fully transparent defence contract opportunities, is holding some UK investors back.

91. Our approach is being supported by the Defence Growth Partnership (DGP) – an initiative which partners UK Government with the defence industry sector. The DGP’s overall aim is for government and industry to work closer together to increase our long-term industrial cooperation and export potential. The Government is already working to maintain a sustained level of engagement with India in this area.

-         Earlier this year, the Ministry of Defence Permanent Secretary chaired a successful Defence industrial seminar in New Delhi with the aim of increasing dialogue between UK and India industry representatives.

-         In April, HMG and UK industry were represented by strong delegations at Def Expo, India’s premier land and maritime exhibition.

-         In September, we are planning a joint visit by UK industry and HMG to meet Indian government and industry representatives to discuss Indian procurement priorities, which will demonstrate the willingness of both sides to develop longer term cooperation.

-         Looking ahead, DIT is working with UK industry to showcase the UK aerospace sector at Aero-India. This cooperation will continue to be sustained through the UK – India Defence Consultative Group and its specialist sub-groups.

SECURITY – CYBER

92. In addition to defence, the DISP is deepening our Cyber and Counter Terrorism cooperation with India.

93. India has the world’s second largest internet user base and the fastest growing online population. PM Modi’s “Digital India” initiative presents opportunities for UK/India partnerships but we are also acting to ensure we harness the power of the internet while ensuring our safety and security online.

94. The UK and India are working to strengthen cyber cooperation to improve our mutual cyber security. This includes tackling cyber-crime and building resilience to attacks, learning from each other’s cyber expertise and ensuring an ideological approach to the future development and governance of a cyberspace that best serves shared interests. For example:

-         In April we agreed to promote international security and stability in cyberspace through a bilateral framework agreement which recognises the applicability of international law to State behaviour in a free, open, peaceful and secure cyberspace.

-         In June during our last annual dialogue we agreed to create Joint Working Groups across our government that would take collaboration forward in a formal and coordinated manner. The five joint working groups (Cyber Diplomacy, Capacity Building, Cyber Crime, Incident Response, and Cybersecurity of the Digital Economy) will operationalise the commitments made under the cyber framework.

-         The UK also participated in flagship conferences, part-sponsoring CyFy in 2017. This is India’s flagship conference on cyber security and governance, and is endorsed by the Indian Government. It involved international attendance from over 45 countries and multi-stakeholder participation.

-         We also helped shape India’s hosting of the Global Conference on Cyberspace in November 2017, an initiative kicked off by the UK, to help build international consensus on a road map for governance of cyberspace.

-         We fund several capacity building projects and have the only cyber Chevening Fellowship programme across the globe. Our work streams are now growing to incorporate data security to enable greater prosperity benefits for the UK and India in cyber space.

95. Whilst there are opportunities to do so, the UK needs to continue to work hard to encourage India to remain aligned to several policy approaches – including legislative and governance approaches – where competitors for alternative models, including a new cyber-crime convention, continue to lobby India hard.

SECURITY – COUNTER TERRORISM

96. Counter Terrorism (CT) cooperation is a key pillar of the UK-India bilateral relationship and a priority which both Prime Ministers are committed to strengthening. Since 2006, we have held an annual dialogue at official-level to discuss security and counter terrorism priorities between the UK and India. These meetings allow the UK and India to discuss global and regional terrorism threats, share experiences and consider where we can improve cooperation.

97. The Defence and International Security Partnership (DISP) has ensured ongoing and deepening engagement on CT at civilian and military level. The 2016 CT dialogue (also known as the Joint Working Group on CT) agreed the first Joint Action Plan for future cooperation enabling greater sharing of mutual expertise in areas of interest to the UK and India. This includes evolving threats such as countering radicalisation online – a global concern. The next CT dialogue is planned for November 2018 in New Delhi.

98. We encourage India to play an active role in efforts to tackle extremism, particularly the UN’s Global CT Forum. The UK believes India can also be an influential voice in support of the UN Global Internet Forum to Counter Terrorism (GIF CT), an industry led group formed to address terrorists’ misuse of social media platforms. Additionally Indian expertise would benefit The Commonwealth to tackle this threat, through the efforts of the Commonwealth Cadre of CVE Experts. We welcome India’s use of multilateral fora (e.g. G20, BRICS) to call for action and increased international cooperation against terrorism.

SECURITY – SERIOUS ORGANISED CRIME

99. The National Crime Agency and other UK law enforcement agencies work closely with Indian counterparts in our joint fight against serious and organised crime. We work together to combat a wide range of criminal threats including cyber crime, child sexual exploitation, money laundering, economic crime, bribery and corruption, drug trafficking, human trafficking and organised immigration crime.

III: INFLUENCE

100.     The UK and India benefit from a unique ‘living bridge’ of people, ideas, institutions and technology. It allows individuals and companies to learn, trade and thrive together and contributes not only to economic growth but to politics, academia, science and the arts.

101.     The UK has over 1.45 million people of Indian descent, accounting for 2.3% of the total UK population according to the 2011 Census (not including those of mixed ethnic backgrounds). The equivalent figure from the 2001 Census was 1.05 million (1.8 per cent of the total UK population). This includes approximately 800,000 British Hindus and more than 460,000 Sikhs. Many British Indians are Muslim, especially Gujarati Muslims, others also identify as Jains and Zoroastrians (although some may also identify as Persian).

102.     We are committed to implementing our vision of Global Britain. This means the UK remaining an open, inclusive and outward facing country that continues to attract people from across the world, be it for education, tourism or employment.

Education

103.     Indian students make a significant contribution to the UK, both culturally and economically. India represents the fourth largest source country for international students in the UK’s higher education institutions. Visa data shows that there were more than 15,000 study related visas granted to Indian nationals in the year ending June 2018, which was a 32% increase on the previous 12 months. 

104.     We are working with the Indian Government to strengthen our education links. As part of this we are looking to establish the mutual recognition of school leaving qualifications and degrees with India. A particular priority is ensuring Indian recognition of a one year UK Master’s degree. To deliver this, the British Council has been working with the Department for Education, UUKi, UK NARIC and Indian partners MHRD and the Association of Indian Universities (AIU).

105.     The UK offers various scholarship schemes to facilitate Indian students in the UK. In 2018/19 alone, the UK government offered 480 scholarships, worth approximately £4.675m, to Indian students. On top of this, according to the British Universities International Liaison Association (BUILA), UK Universities offer scholarships and bursaries worth over £13m. Scholarships on offer include:-

-         The Chevening scholarship – the British Government’s flagship global scholarship programme. Initiated in 1983, 1500 awards are offered annually in over 160 countries. It is funded by the Foreign & Commonwealth Office and partner organisations. 198 GREAT education scholarships were on offer for Indian students for the 2017 academic year, with 29 in undergraduate courses and 169 postgraduate courses over 40 UK institutions across England, Scotland, Wales and Northern Ireland.  There are over 50,000 Chevening alumni in the world and more than 2,300 in India.

-         The British Council also offer a number of scholarships. As part of its 70th anniversary campaign, in 2018 the British Council invested in 105 scholarships for inspirational women to study a Master’s programme in STEM subjects in 44 UK universities.

-         British Council also administered 202 Commonwealth Scholarships and Fellowships (to date over 4,600 CSFP awards have been offered in India), 67 GREAT scholarships in partnership with 25 UK universities (over 700 awards in the last five years), and 41 Charles Wallace India Trust scholarships to mid-career professionals in the arts.

Tourism

106.     Tourism plays a significant role in the living bridge between the UK and India. Over 460,000 visit visas (including student visitors) were granted to Indian nationals in the year ending June 2018, a year-on-year increase of almost 10%. VisitBritain research shows 76% of departing holiday visitors from India (excluding British expats) say they are ‘extremely likely’ to recommend Britain for a holiday or short-break, which is slightly above the 71% across all markets.

107.     VisitBritain is identifying ways to increase tourism from India to the UK. Their research highlights over two thirds of visits to the UK from India are made between April and September. It also found that in 2015 over half of the visits to Britain from India were made by people who reside in the state around Mumbai (Maharashtra) and in the Delhi area. We are keen to attract more Indian visitors all year round and from across India.

108.     The FCO has a key strategic objective to protect our people. Our consular services assist British people travelling, living and working around the world when they are most in need. Our strategic vision Helping British people overseas: Consular services 2016-2020, sets out that we will do this by focusing more of our resources on the most vulnerable and by increasing our efforts to reduce preventable incidents. We have an independently validated 84% satisfaction rate. The India consular network is made up of 15 staff. In 2017 our India network dealt with 451 new cases and at any given time they have approximately 230 open cases which require action. Teams deal with all casework types. In 2017 welfare (130) and death (120) cases were predominant. They also provide support to 24 British nationals in detention at 12 separate locations across India.  

Visas

109.     The living bridge between the UK and India is supported by people being able to travel, study, work and experience each other’s countries. Ensuring this living bridge operates as efficiently as possible is a key priority. India is a country full of talent that will always be welcome in the UK. We have more visa application centres in India (18) than in any other country in the world, and offer a Super Priority Visa service in more Indian cities than in any other country (New Delhi, Mumbai, Chennai, Bengaluru and Pune). We welcome the vitality that Indian talent can bring to the UK economy, which is why for the past four years in a row the UK has issued more skilled worker visas to India than to all other countries in the world combined. In the year ending June 2018, 90% of Indian nationals who applied for a UK visa were successful.

110.     We are also working closely with the Government of India to address associated problems, including for example visa overstayers. India accounts for the largest number of individuals in the UK illegally, and enforced returns to India have fallen by over 50% in the past three years.

111.     As an open, inclusive and outward facing Global Britain, we want to make the UK a dynamic, open, globally-trading nation across a number of key sectors. We want to welcome the best talent from around the world, and maintain the UK’s position as a top destination for innovation, including in our world leading tech sector. The Government has therefore made a number of changes to attract and support skilled workers who want to come to the UK. These include:-

-         To support the valuable work doctors and nurses from overseas perform for the NHS, we have amended the Immigration Rules to remove doctors and nurses from the ambit of the cap on Tier 2 migrants – skilled workers. This has the added benefit of creating extra space within the cap for other highly skilled professionals working in other sectors of the economy, Indian nationals already make-up around 60% of all Tier 2 visas issued by the UK, so will benefit significantly from this change.

-         To support innovation and entrepreneurialism, in 2018 we have doubled the number of visas available on the Tier 1 (Exceptional Talent) route to 2,000 per year.

-         Next spring, we will also launch a new Start-Up visa route, to replace the current Tier 1 (Graduate Entrepreneur) route, opening it up beyond graduates to all business people.

-         In addition we continue to support our tech sector through Tier 2. In the year ending June 2017, around 28,000 skilled non-EEA workers were sponsored to work in the UK in the information and communication industry.

-         To support scientific and research talent we have reduced the number of years required for those on the Tier 1 (Exceptional Talent) route to apply for settlement. This will benefit global scientists, exceptional researchers, as well as tech, creative and arts leaders.

-         We have made it easier to employ international researchers by waiving the resident labour market test under Tier 2.

-         We have also exempted science and researchers from the 180 day settlement rule. This allows them to be outside of the UK for longer than this permitted period if they are assisting with a humanitarian or environmental crisis.

-         We have enabled faster switching between our Tier 4 student routes and the Tier 2 highly skilled route to make it easier for those applying for UK jobs at the early stages of their careers.

-         We have expanded the number of institutions who can sponsor international researchers to make it easier for Research Councils and similar organisations to bring researchers to the UK for 2 years via our temporary work route within the Tier 5 (Government Authorised Exchange) Scheme.