In a post-Brexit world the UK is keen on a new trade with India to the value of £23bn – all part of the UK’s plan to focus on the Indo-Pacific region.
UK Boasts Over Pending New Trade Deal With India
As the second largest foreign investor in the UK, is it any wonder that in a post-Brexit world, India is readying itself for a trade deal with the UK to the value of £23bn? In what has been deemed as a post-Brexit boost for Britain, Boris Johnson will visit the Asian country at the end of April this year. The move will also mark the British Prime Minister’s first international trip since the UK departed from the European Union. Mr Johnson intends to meet up with Prime Minister Narendra Modi who has also received an invite from Mr. Johnson to attend the G7 Summit this coming June in Cornwell. UK High Commissioner to India, Alex Ellis, has said “Traditionally India has not been very enthusiastic about trade deals. There is a shift and a desire for bilateral trade deals with countries including the UK.”
The High Commissioner’s comments carry credibility as the UK plans to focus on the Indo-Pacific region, an area considered to be the geopolitical centre of the world. The Indo-Pacific region, outside of India, includes and is not limited to Bangladesh, Japan, Vietnam, Malaysia, New Zealand, Australia, Singapore, Thailand and the US. The UK’s future reliance on this eclectic region echoes Mr. Johnson’s comments: “I am profoundly optimistic about the UK’s place in the world and our ability to seize the opportunities ahead.” These comments only serve to further solidify the UK’s stance on Brexit and it’s intention to immerse itself in the rest of the international community outside of the EU.
In February India and the UK signed an Enhanced Trade Partnership agreement, seen by many analysts as a sizeable stepping stone to the securing of a long-term trade agreement for the UK with one of the world’s largest economies. According to the UK’s Secretary of State for International Trade Liz Truss, India’s trade relationship with the UK, which encompasses over 383 companies in the UK and 82 000 jobs, was worth £23bn in 2019. With this in mind, whose to know what that value might eventually inflate to? Now might be the time to find out how Forex trading with Sterling Pounds works as the UK’s currency could very well stand to strengthen further in the future.
Ever since the UK’s exit from the European Union, New Delhi has expressed a keen interest on a Free Trade Agreement (FTA) with the country for a number of reasons, some of which include the importance of the UK as a trade partner and the market it offers to India in terms of service providers. Prior to the global pandemic, the bilateral trade enjoyed between the two countries had grown by a healthy eleven percent. Just between 2019 and 2020, this growth exposed itself to the tune of US$ 15.48 billion.
Also aiding in trade relations between the two countries is the future fulfilment of a comprehensive migration and mobility partnership agreement. While both countries are still involved in talks, once finalised, the agreement will allow for a speedy back and forth of both students and professionals. Education will be but one major outcome from the agreement, which will segue into a New Graduate Scheme allowing students from India to work in the UK after the completion of their studies.
Finally, both countries are also looking to co-operate on and thus strengthen cyber security, vaccine production and joint defence production.