Security Incident and Diplomatic Relations
A security breach involving a Khalistani protester approaching Indian External Affairs Minister S. Jaishankar in London cast a shadow over his visit to the U.K. and Ireland. Despite this, the visit proceeded as scheduled, with Mr. Jaishankar emphasizing the strengthening of India-U.K. relations despite their "complex history" and current challenges.
India's Diplomatic Efforts in the U.K.
- India is expanding its presence in the U.K. with two new consulates in Manchester and Belfast.
- Mr. Jaishankar held extensive talks with U.K. Foreign Secretary David Lammy focusing on the Free Trade Agreement (FTA) which has been delayed since the U.K.'s Brexit in 2020.
Trade Agreements
- There is a focus on concluding the India-U.K. FTA and the India-EU Bilateral Trade Agreement (BTA), with the latter talks starting in 2007 and aimed to conclude by the end of 2025.
- India's trade with the U.K. ($52 billion) and Ireland ($17 billion) is considered underpowered, with discussions on enhancing high-tech trade collaborations.
Global Trade and Tariff Adjustments
India’s conciliatory stance on import duties with the U.S. is expected to aid FTA talks with the U.K. and the EU. The Indian government has reduced tariffs on various goods, including wines, spirits, and vehicles, aligning with past U.S. demands and potentially facilitating future trade agreements.
Geopolitical Context
The visit followed significant diplomatic engagements in Delhi with European Commission President Ursula von der Leyen and a Belgian delegation led by Princess Astrid, indicating Europe's interest in strengthening ties with India. Mr. Jaishankar’s visit coincided with geopolitical shifts, including the U.S.-Ukraine tensions and NATO's response, positioning India to leverage accelerated diplomacy.
