Britain’s Relationship with India:
What should it be and how could it work?
Led By Manish Singh

In September, David Cameron visited India to promote the case for increased world trade between India and Britain, as well as the arguments for stronger partnerships in terms of combating international terrorism and protecting the world environment.

A new project led by Manish Singh sets out to examine what the relationship between Britain and India should be and the practicalities that would have to be addressed in making it work. Key issues include;

India has more in common with Britain than US, the legal and constitutional structure the shared history, the early collaboration both intellectually and business wise and yet it is US who has benefited the most from India over last few decades. Why?

On the trade front, India is now the third largest investor in the UK and 1.3 million people who live in Britain have Indian origins. Not only does the UK emerge as the top European investment location for Indian companies targeting the European markets and beyond; but India is also the second largest source of FDI from Asia.

Indo-British trade figures are estimated at £5 billion per annum. However, India's bilateral trade with China is over £7 billion per annum and with the US is over £10 billion. India received just half a per cent of British investment in 2004, despite the keenness of British companies to look at the opportunities that could be created.

Why is investment from the UK in India relatively small as compared to other countries?

Indian bureaucracy, inhibiting labour regulations and industrial/trade policies and lack of proper infrastructure alone cannot be the reasons as these are forbidding to foreign investors alike. Therefore there is a need to look within the UK itself and ask ourselves why do we not have the confidence that the US does in investing in India. From the Indian point of view, UK investment in India is disappointing; especially considering the enthusiasm in recent years among Indian businesses investing in the UK.

Best practice and innovation should ideally be shared, but where do these opportunities lie?

In other policy areas, India has led the way in terms of implementing dramatic climate change so what lessons are there for Britain to learn? The threat of International Terrorism looms large for both countries, so more collaboration and co-operation between the countries should be encouraged in establishing a stronger partnership.

Lastly, there is the possibility of more free trade between Britain and India in terms of removing non-tariffs to business trade, and even the possibility exist of creating a free trade agreement.

So this project sets to examine how Britain could properly work with India in both furthering mutual economic advantage, but also to examine the potential opportunities that lie in other areas. These include:

To put forward your own views and opinions, to get involved as a project team member or for simply more information on this project, please contact Manish Singh at manish05singh@gmail.com

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