India-UK Bilateral Relations and Comprehensive Economic and Trade Agreement (CETA)
The recent visit by the Prime Minister of the United Kingdom, Keir Starmer, to India emphasized recent developments in bilateral relations, marked by the signing of the Comprehensive Economic and Trade Agreement (CETA) in July.
Key Developments and Investments
- The UK delegation included the largest group of businesspeople ever to visit India.
- Indian companies committed to investing approximately 1.3 billion pounds in the UK, including an expansion by TVS Motor in England.
- India aims to access advanced innovation through new joint projects.
Economic and Trade Implications
- Market Access: CETA may open new markets for Indian companies, including the gems and jewellery sector.
- Sectoral Ties: Mr. Starmer's address at a fintech conference in Mumbai highlights potential collaborations in financial and tech sectors.
Challenges and Considerations
- Issues such as work visas for Indians are unlikely to be revisited due to the UK's domestic political climate.
- The focus will shift to cooperation on the return of illegal migrants.
Implementation and Future Cooperation
Efforts are needed to ensure CETA benefits all companies, including MSMEs in India. Areas of focus include:
- Mutual-recognition agreements for professionals.
- Commitments on e-governance and regulatory cooperation.
- Enhanced security cooperation, particularly in the Indian Ocean region, in collaboration with French and UK naval forces.
The partnership remains one of the most tension-free and transparent from New Delhi’s perspective, with room for expansion in economic and security spheres.
