Tuesday, November 27, 2018

UK – India: Real Strategic Shift in Relationship needed

The weather may have been cold,but during Prime Minister Modi’s visit to the UK in 2015, there was clear warmth between the then British Prime Minister David Cameron and his guest; yet, in the last visit, when the weather was definitely warmer in April this year, the chill in the relationship was clear to even the casual observer.
 
Terse exchanges on Britain becoming the safe haven for Indians who have been accused of swindling the tax payers in their own country to India’s refusal to sign the MoU on ‘repatriation of illegal immigrants, the situation couldn’t have been more starkly different from the Cameron – Modi bonhomie and the slogan “Two Great Countries – One Common Future.”
 
Trade & Cooperation Still Continues….
 
Not with standing the confusion and frost in the inter-governmental relationship, the private sector and the people to people engagement across various sectors, enabled often by what PM Modi calls the “living bridge” – the British Indians alongside governmental initiatives, have ensured that cooperation continued with cross-border investments and trade between the two countries, across a range of sectors including new ones in life sciences and infrastructure among others.
 
There was 15% increase in bi-lateral trade in 2017 reaching 18 billion pounds,after a few years of falling numbers. The private sector confidence in each other’s markets continues to grow and today UK businesses employ over 800,000 Indians, while 800 Indian businesses in the UK employ over 100,000 people. London city has established itself as the premier place for India to raise capital to meets its trillion-dollar requirement to transform infrastructure; and masala bonds have raised over $4 billion so far.
 
Although much of the progress have been driven by the private sector, the governments in both countries have invested in collaborative programmes such as the Access India Programme, Urban gateway or the innovative £50 million Newton Bhabha Fund co-created by the UK and Indian governments is stimulating UK and Indian scientific research into tackling the challenges that deter India’s socio-economic development. The UK’s proactive support in helping India improve its rankings on Ease of Doing Business has been widely recognised and acknowledged from the highest levels of the Indian Government.
 
Despite all these progress, one cannot help but think the relationship is increasingly seeming to be siloed and “transactional” rather than a comprehensive win – win strategic dialogue. Because we can do so much more!!
 
Why is the Partnership vital?
 
The United Kingdom and India can truly be partners in helping each other achieve their mutual aspirations and together be a force for good in tackling climate change, alleviating poverty, empowering people around the globe, especially the commonwealth, through access to technology, education and healthcare – a partnership Prime Minister Modi himself has anointed an “unbeatable combination.”
 
This is not altruism – instead,this partnership is “realpolitik”; and it strategically benefits both, UK and India.
 
Prime Minister Modi’s vision of a transformed and New India with focused campaigns on “Digital India”, “Make in India”, “Smart Cities Mission”,“Startup India”, “Skill India” and efforts to bring the country’s infrastructure to 21st century standards, fits well with UK’s expertise and skills set, including the ability to help India raise capital from London. These partnerships have already been proven to be fruitful and mutually beneficial.
 
Beyond the obvious transactional nature of these partnerships around specific areas, this opportunity presents the Commonwealth as a potential growth market and an influential international alliance that can counter Chinese expansionism and hard power; while delivering growth and prosperity for the millions at home and abroad.
 
Sadly, flawed perceptions and misplaced expectations exacerbated by lack of diplomatic sensitivities have created a situation where the full potential of the relationship is not even really being discussed, let alone being realized. The challenges and issues around the visa regime and labour mobility are not insurmountable and flexibility on both sides along with mutual respect and trust could resolve this impasse.
 
This is indeed a failure of both governments and also that of the British Indian community, especially those self-appointed “community leaders” of Lutyens London.

 
Shamit Ghosh
November 27, 2018

 



source https://indiaoutbound.org/uk-india-real-strategic-shift-in-relationship-needed/

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