India-uk relations

India-UK relations

T he UK/India relationship is mutually beneficial and wide ranging; covering- development, regional stability, trade and investment, climate change, counter terrorism and reform of the global international systems.

We share the core values of democracy, pluralism and tolerance.

British society is enriched by its strong, dynamic human ties to India.  India gets the second highest number of tourists from the UK. The UK’s largest visa operation worldwide is in India and processed in the region of half a million applications in 2011. Between 1.5 million and 2 million people of Indian origin live in the UK, the largest ethnic group.

Partners in business

The UK and India are among the top investors in each other’s economies bringing significant long term benefits to both.

UK exports to India are up by about 20 per cent and Indian exports to the UK are up 4 per cent. (Figure for services exports for this year is still awaited. This is the fig. for Q2 2013)

The UK aims to double its bilateral trade with India by 2015. India seeks to increase its bilateral trade with the UK to £24 billion by 2015.

The UK is by far the most popular business destination in Europe for Indian companies, of the 1200 Indian companies in the EU, 700 are in the UK.

Indian companies are playing an increasingly important role in the UK economy. Tata is one of UK’s largest manufacturing employers.

Some recent UK success stories in India include:

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  British Petroleum’s $7billion partnership with Reliance which will put the UK in the lead among India’s investors.
  
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  Serco’s recent investment of £385 million in Intelnet. 
  
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  JCB’s Indian operation which is growing by 15% 
  
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  United Biscuits (McVitie’s) who have invested about $1.6 billion in their first factory in India. 
  
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  Pearson’s school in Bangalore, the first in the world under its own brand name. 
  
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  Whitbread, which plans to invest £75 million in India and will operate over 80 properties.
  
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  AeroDNA from UK which is developing joint ventures and technology licensing partnerships with nine Indian clients and UK aerospace SMEs - forecasting   combined revenues of £2.2 billion within ten years from engineering services and aerospace manufacturing.
  
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  Business for Hawk Advanced Jet Trainer programme, BAE Systems from HAL (Hindustan Aeronautics Limited) valued at £59 million.  
  
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  The Warwick Manufacturing Group  have signed MOUs with IIT Kharagpur and the new IIT in Bhubaneswar, and have established a joint UG internship and research project programme with both IITs. This summer WMG will host 16 IIT interns.
  
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  Chennai-based TVS Group, recently acquired Universal Components (UC) UK Ltd, a leading independent wholesale distributor of Commercial vehicles’ parts and accessories, their second acquisition after Multipart Holdings, UK in 2009. With this investment, the TVS group turnover in the UK would cross US$180 million and employ about 500 staff.
  
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  Chennai-based SCOPE International UK has helped Standard Chartered Group reduce its technology spend three-fold over the last ten years from 12% of US$18 billion revenues to about 3% of revenues. SCOPE’s 8,500 staff services most of the 75 countries where the Group has a footprint. Over 40% of staff in Chennai work on core technology functions, representing about half of the bank’s technology capability globally.
  
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  Caparo has a US$ 100 million facility near Chennai (aluminium foundry, sheet metal, R&D); Caparo supplied around 10% of components which went into the Rs.1 lakh Tata Nano car. 
  
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  GKN Driveline has a manufacturing and testing facility for automotive components (£12 million). GKN has invested nearly £6.6m in their new forging facility, it’s first wholly-owned forging unit in the Asia Pacific region. GKN is the world’s leading supplier of driveline systems and solutions.
  

It’s not just the big companies. Among SMEs, recent successes include:

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  CDE Asia Ltd. £1million iron-ore contract and a £10 million project to set up an iron-ore beneficiation plant.
  
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  Testplant, which has signed an international “Collaboration Agreement” with Wipro- expected to grow at £1million per year.   
  
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  Andrews Industries, Calex electronics and David Brown have also recently entered the market.  
  

We continue to see strong Indian investment in the UK. Genser Aerospace has set up its European headquarters in Manchester.  Havells Sylvania, which manufactures lighting products in East Sussex, has moved its European headquarters from Frankfurt to London and even more of its research and development operations to the UK.

Partners in the Knowledge Economy

Together, the UK and India are leaders in ensuring that knowledge sectors drive inclusive economic growth in the 21st century. There is a significant increase in the UK/India partnership on education, covering primary education, higher and further education and research into the most advanced technologies.

There are over 80 collaborative UK-India programmes leading to UK degrees or awards in India.  There are some 5,000 Indians studying for UK degrees in India.

The UK is the home of the English language. The UK leads in the teaching of Business English providing skills for better employability in India. British Council is working towards reaching 100 million English learners in the next few years and its Project English initiative has impacted on 17 million learners across India. The British Council are helping train 750,000 English teachers and are now delivering English training under the SSA (Primary Education for all Initiative) in the state of Assam and with the RMSA (Secondary Education for all Initiative) in Bihar.

Scholarships

Up to 700 scholarship awards are offered to Indians by UK institutions each year, including 50 FCO-sponsored Chevening scholars. The scholarships offer highly coveted opportunities for India's future leaders, decision makers and opinion formers. They help recipients hone their leadership qualities by providing them with an opportunity to study in the stimulating intellectual environs of Britain's leading institutions of higher learning. The Chevening Alumni comprises leaders from civil society, academia, government, NGOs and business. At present we have seven programmes up and running for Indian citizens-

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  Chevening Gurukul Scholarships for Indian Leaders
  
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  Chevening Rolls-Royce Science and Innovation Leadership Programme 
  
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  Chevening South Asia Journalism Programme  
  
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  Chevening IBPF programme for Parliamentarians 
  
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  Chevening - Weidenfeld scholarships  
  
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  HSBC Chevening Scholarships 
  
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  Chevening Clore Scholarships for cultural Leaders
  

In 2012, the British Council and the UK Government launched a Jubilee Scholarship program to enable 60 young Indian candidates to pursue a one year Masters programme in Management, Manufacturing, Science and Technology in a recognised UK institution, followed by a short term internship programme in the UK. This programme was launched as part of Her Majesty the Queen’s Diamond Jubilee and the GREAT campaign designed to focus on the areas of British excellence including its high quality education provision. The scholars received funding for a one-year Masters course in the UK, starting September 2012.

The 2006-11 UK-India Education and Research Initiative (UKIERI) has linked 475 schools and higher education establishments in the UK and India. 2011 saw the launch of the second phase of UKIERI with matched funding by UK and Indian governments (in the region of £ 5 million over the next 3 years). The second phase of UKIERI will focus on four areas, building a new generation of leaders, innovation partnerships, skills development and enhancing mobility.

UK and India researchers collaborate in a wide range of areas, including issues of global concern. Research Councils (RCUK) Office in India and the UK Government Science and Innovation Network promote this work. In the last three years (2008-2011), joint research collaboration between the UK, India and third parties has grown from less than £ 1 million to over £ 80 million, covering a wide range of research themes helping to address global challenges, such as energy, climate change, social sciences, healthcare and life sciences.

Partners in development 

The UK and India have a long history of collaboration on development which continues to be a core part of the wider UK-India relationship. Both countries’ believe that a successful development partnership is mutually beneficial to promote prosperity, combat poverty and achieve the MDGs.

The Indian Finance Minister and the UK International Development Secretary agreed a new approach to the UK–India development programme until 2015, reflecting the huge changes in India and the need for the UK’s work to be additional and catalytic. The programme focuses on India’s poorest states – primarily Bihar, Madhya Pradesh and Odisha - and will help unlock the potential of the private sector to deliver jobs, products, infrastructure and basic services. UK support is aimed at the poorest women and girls, to help them get the quality schooling, healthcare, nutrition, and jobs which are the key to breaking the cycle of poverty for the next generation. More and more, the UK - India development partnership is about sharing knowledge and expertise, exchange of best practices, supporting innovation and building capacity and skills.

The UK – India development partnership has helped deliver real results: 2.3 million people lifted out of poverty in rural areas in the last 5 years, helped 1.2 million children to go to school and to help India be free from Polio in the last ten years. Over time, the UK-India development programme will transition from an aid-based relationship to a mutual, two-way partnership on critical global issues, including trade, global growth, climate change, and food security. 

Energy Security and Climate Change 

Climate Change is a fundamental threat to prosperity and security for both UK and India. In order to meet energy demand and secure future growth, a low carbon, energy efficient economic pathways need to be adopted across the world. The UK and Indian governments have continued to enhance cooperation on sustainable development and green growth. There has been good UK- India collaboration on low carbon policies and technologies and in international negotiations on climate change, sustainable development and biodiversity. 

There is huge scope in India and UK to use low carbon approaches not only to fight climate change but to deliver energy security, economic growth and inclusive development. 

Gregory Barker, Minister of State, Department of Climate Change and Energy visited India in April 2012 to further enhance UK-India relations on sustainable development and to encourage partnerships between the two countries. He also explored business opportunities in the area of low carbon.

An Indian government and business delegation visited UK in February 2012 to share experience and expertise on smart meters.

A group of Indian MPs enhanced people-to-people ties when they visited UK in April 2012, building relationships with UK parliamentarians and exchanging views with business, academics and NGOs on climate security and climate science. 

UK and India are also funding joint research on sustainable energy. Collaboration with Government of India includes solar energy, fuel cells, smart grid and bio energy which are helping both countries to be energy secure.

Partners in security

Both the UK and India have suffered serious terrorist attacks over the years and are among the strongest proponents of international co-operation to counter terrorism and extremism. The UK and India are strategic partners in this field. Bilateral operational links are expanding and deepening, close cooperation around the 2010 Delhi Commonwealth Games represented a significant security success.

The UK-India defence relationship has never been stronger. The bilateral programme of exercises, exchanges, training courses and high-level visits across all Services continues apace.  Defence equipment co-operation includes supply of AW101 helicopters and Hawk Advanced Jet Trainers. The recent visit of HMS Daring – the first of the new Type 45 Destroyers – to Mumbai was a great success and provided an excellent opportunity for UK Defence companies to showcase the best of British defence technology.