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WHY INDIA IS IMPORTANT TO THE UK
Common agenda: Partnership for a better and safer world
Britain and India share a global vision and democratic values. The vision of both Prime Ministers was set out in the New Delhi Declaration of January 2002.
Atal Bihari Vajpayee and Tony Blair have reaffirmed the deep partnership between India and UK and pledged to work together to identify and develop new areas of partnership between the two countries - to the benefit of our peoples, and to help create a better and safer world.
The UK and India both want to play a positive and proactive role in international affairs. We have a mutual interest in co-operation on the world stage. Both play leading roles in the UN and Commonwealth. The UK is unique in being the only country in the world to be a member of The Commonwealth, the EU, UN, NATO and the G8.
The UK supports India's candidature for a Permanent Seat in the Security Council and will work with India to achieve this.
Our partnership stretches from working to combat International Terrorism, Afghanistan, Peacekeeping and on through to trade, investment, environment, IT, reforming international finance, development, science, technology, combating international crime and drugs.
Step change in bilateral relationship, following series of high-level visits in both directions over the past few years including visits by Tony Blair, John Prescott, Jack Straw, Geoff Hoon, Margaret Beckett, Clare Short, Patricia Hewitt, Stephen Byers, Peter Hain, Tessa Jowell, Baroness Symons, Douglas Alexander, Nigel Griffiths and Ben Bradshaw. As well as Prime Minister Vajpayee, George Fernandes, L K Advani, Jaswant Singh and Yashwant Sinha's UK visits. There are plans for a range of further Ministerial visits over the coming year and Ministers keep in regular telephone contact. Recently Prime Ministers Blair and Vajpayee met in St Petersburg.
Ethnic minorities make up 8 per cent of the population in the UK according to results from the 2001 Census. The figures show that members of ethnic minorities including mixed race people, number 4.6 million out of the total 58.7 million population. The Indian community in the UK now numbers over 1.3 million and, overall, is the most prosperous of the major ethnic communities in the country. Influential, innovative and successful in business, politics, the arts. Over 6000 Indians settled in the UK last year. Now a major part of Britain's economy and culture. This in turn strengthens the partnership between the UK and India.
India in the world
India has all the attributes to be a 21st century superpower. Robust democracy, a burgeoning economy, international interests and global aspirations.
Economy:
India is becoming increasingly important in the global economic arena - it is the world's fourth largest economy in PPP (purchasing power parity) terms and is a founding member of the WTO. It is amongst the world's top five fastest growing economies, with real GDP growth at around 5.5% for the past few years. The economy is gradually opening up with foreign trade increasing from 17% of GDP in 1991 to 30.6% of GDP in 2001. Economic momentum is gathering. Reform agenda on track. India's substantial potential (a rapidly expanding middle class which could eventually total 200 million people) makes it an attractive destination for FDI in a variety of sectors in manufacturing as well as services, in particular IT, healthcare, creative industries and financial services. Abilities of Indian entrepreneurs and technical specialists give the country a head start in the knowledge-based world economy.
Global aspirations
India has, over the last 50 years, played an influential role in world affairs as a key player on the global stage. UK confident that India will, in early part of 21st century, join the top 10 world economies.
Trade and Investment
Indo-British partnership prospering: two-way trade of goods and services has increased in the past 10 years. UK-India bilateral trade of goods and services was close to £5 billion (US $7 billion) in 2001. Two way visible trade stood at £2.6 billion in 2002.
Trade
UK-India bilateral trade of goods and services has grown by 67% since the Indo-British Partnership was formed in 1993. UK is India's second largest trade partner and accounted for 5% of India's total foreign trade in goods in 2001/02. Major items of trade in goods include:
- UK exports to India: non-metallic minerals, gold, diamonds, power generating and telecom equipment, transport equipment and industrial machinery.
- UK imports from India: textiles and readymade garments, gems and jewellery, footwear, metal manufactures, power generating equipment, organic chemicals and vegetables and fruit.
Investment
Since 1993, when the IBP was formed, over 1,905 new Indo-British joint ventures have been approved by the government of India.
New investment from the UK into India:
UK is one of the largest cumulative investors in India. UK has the third largest share of overseas investment in India with 9.8% of new investment approved since 1991, well ahead of Germany, Japan and France. UK has the fourth largest share with 5.2% of actual new investments implemented since 1991, behind the USA, Mauritius and Japan. In addition, reinvestments by UK companies already existing in India are also significantly high.
Investment from India into UK:
India is fast emerging as an important source of investments in the UK. India was the second largest source of investment into the UK from in 2002-03 in terms of projects. Japan tops the list with 60 new projects About 40% of Indian overseas investment flows into Europe, compared to 20% to the USA. Out of the total Indian investment flow into Europe, over 60% is concentrated in the UK. UK is the largest market in Europe for Indian IT services, accounting for 12% of total IT services exports (nearly $1 billion) (said by NASSCOM's Mr. Karnik at the London Stock Exchange) In 2002-03 an additional 19 Indian companies set up successful operations in the UK creating 316 jobs. More than 441 Indian firms have set up operations in the UK, of which 338 are from the Information and Communications Technology (ICT). They include flagships for the Indian ICT sector such as Tata Consultancy Services (TCS) and Wipro. Eighteen Indian companies are listed on the London Stock Exchange; more than the combined total (11 companies) of Indian companies listed on NYSE and NASDAQ.
BTI in India:
In India, the TPUK/INUK services are delivered through an extensive network comprising the Economic & Commercial Department of the British High Commission in Delhi, the Commercial staff in the Deputy High Commissions in Mumbai, Kolkata and Chennai, the British Trade Offices in Bangalore, Hyderabad and Ahemdabad and the British Information Centres in Chandigarh, Bhopal and Pune.
Sectoral focus:
TPUK activities in India focus around certain key sectors including Airports, Automotive, Biotechnology & Pharmaceuticals, Communications, Creative Industries & Media, Education & Training, Environment, Financial Services, Fire, Police & Security, Healthcare & Medical, Metallurgical Process Plants, Mining, Ports & Logistics, Power, Recreation & Tourism, and Software & B2B Computer Services.
Some interesting facts
IT - IT is one of the fastest growing sector in India registering an average annual growth of 50%. 185 of Fortune 500 companies outsource from India. Communications: India has the world's sixth largest network with 46 million telephones (including 7million mobile phones). It is the second-largest network among the growing economies of Asia. The market is expected to expand by 9.4% annually for the next five years.
Initiatives
In July 2002, Confederation of British Industry (CBI) and the Confederation of Indian Industry (CII) held an economic conference in the UK sponsored by Trade Partners UK. The CII and CBI have agreed to set up a working group on trade policy, and to implement a ten-point action plan designed to increase the bilateral trade and investment to £10 billion over the next five years.
During 2002/2003 30 trade missions and 10 ministerial visits from the UK took place. This year marks 10 years of the IBP. In January 2003 to coincide with the visit of Patricia Hewitt, a major event was held in New Delhi to celebrate the occasion.
Development
UK is working with India to 'reduce poverty' with over £100 m bilateral aid per year. India is the largest recipient of UK development assistance. Spending last year was Rs.1400 crores (£180 million). This figure is planned to rise substantially to around Rs.2100 crores (£300 million) by 2004/5. Britain's assistance to developing countries has risen to the highest level ever. UK spent £2940 million in the calendar year 2000, equivalent to 0.31% of total GNP. It also underlines UK's commitment to making progress towards the poverty eradication and UN target, that aid should make up 0.7% of GNP. DFID's efforts are currently focused on meeting the internationally agreed UN Millennium Development Goals by 2015. DFID maintains a core programme of strategically focused assistance at the national level. This includes support for the prevention of HIV/AIDS, elimination of Polio and Tuberculosis Partnership with four of India's states - Andhra Pradesh, Orissa, Madhya Pradesh and West Bengal DFID ensures that the interests of the poor in India and elsewhere are presented in international fora and reflected in British government policies on economics, foreign policy and trade issues. DFID provides timely and effective emergency assistance if and when such needs arise. Such as £10 million (Rs.70 crore) at the time of the Gujarat earthquake and assistance for the Orissa floods victims. UK recognises development is not just about the transfer of aid funds. Globalisation is important, a fact underlined by the White Paper on Globalisation and Development (published December 2000), which commits UK to find ways in making globalisation work for the poor
Education, Culture and People to People
British Council operation in India the world's largest. A real engagement of education, culture, science and technology. 600 scholarships (including Chevenings) offered to Indians by British Universities each year. The UK is working to increase the value of Chevening Scholarships to Indian students to £2 million (14 crore rupees) annually. India is the second largest Chevening programme in the world with a total of 130 scholars. Education: There are now around 11,000 students in the UK. Nearly 19,000 young Indians applied for student visas in 2002. The total number of student visas issued in 2002 was 64% higher than in 2001. We wish to further boost this figure by the year 2005. Indians made up 63% of the total number of foreign nationals granted permission to enter the UK on basis of IT qualifications (11474 out of a total of 18257) in the year 2000. Many intra company transfers between India and UK. 300,000 British people visit India every year. There are more tourists from Britain than any other country. Possibly upto 500,000 Indians visit the UK each year.
INDIAN VISITORS WELCOME
Indian visitors to Britain are very welcome and our commitment to our customers is to continue to improve our service levels. Over 200,000 UK visas issued in India last year. Twice as many as in any other country. Expecting more than a quarter of a million Indian customers in 2003. Customer service a high priority: surveys regularly show customer satisfaction rates at 90% and more. Fast service for all visit visa applicants Ten year multiple entry visit visa introduced Continually trying to improve our visa service by refocusing our visa operation including opening Visa Application Centres in Delhi, Jalandhar, Chandigarh, Chennai, Hyderabad, Bangalore, Kolkata, Mumbai, Ahmedabad, Pune and Cochin as well as:
Relaxing procedures for work permit holders
simplified procedures for work permit applicants, including applications by e-mail all work permits issued within two weeks, and most within one week of application maximum validity of permits extended from 4 to 5 years introduction of Multiple Entry Work Permits to help those employees who work in UK for short periods on a regular basis. operating a business express service to process business traveller applications even more quickly, especially in the IT industry 108,825 work permit holders and dependants admitted to UK in 2001
Allowing innovators and entrepreneurs to set up in business in UK (10% of which are Indian nationals)
part of HMG's continuing effort to lower the barriers preventing entrepreneurs coming to UK focus is on science, technology and e-commerce no personal minimum investment required, but just good ideas and a good business plan permits usually within 2 weeks
Streamlining procedures for students, in support of PM's student initiative
Issuing visas to record number of students every year. Nearly 12000 in 2002 Overseas degree students now able to seek full time employment in UK after successfully completing studies improved links with the British Council to make application easier improved information on courses available increased number of scholarships changes to allow overseas students to work up to 20 hours per week during term time, and full time during vacations.
AND ALSO:
The free right of appeal for family visitors refused visas Allowing regular travellers to apply without the need to come in person Refurbishing our visa offices and improving waiting facilities
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