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UK and India Strengthen Economic and Migration Ties During Foreign Secretary's Visit

Published 2 weeks ago5 minute read
UK and India Strengthen Economic and Migration Ties During Foreign Secretary's Visit

Foreign Secretary David Lammy is set to visit India to engage in talks with the Indian Government, aiming to deepen and diversify the Comprehensive Strategic Partnership between the UK and India for the benefit of working people in the UK. This visit, Lammy's second to India, follows the recent agreement of a historic Free Trade Agreement (FTA) between the two nations, which is anticipated to significantly increase bilateral trade.

The newly signed FTA is a cornerstone of the strengthened UK-India relationship, projected to boost trade by more than £25 billion annually. Furthermore, this agreement is expected to contribute an estimated £4.8 billion to the UK's GDP and increase wages by £2.2 billion each year in the long run, thereby directly benefiting working individuals and families in the UK.

During his visit to New Delhi, Foreign Secretary Lammy will meet with key Indian officials, including Prime Minister Narendra Modi and External Affairs Minister Dr S Jaishankar. The discussions will focus on advancing the ambitious UK-India relationship, with particular emphasis on the ongoing economic and migration partnerships, and on delivering further growth opportunities for British businesses.

This initiative is a key component of the UK government's 'Plan for Change,' designed to boost jobs and prosperity within the UK. The Foreign Secretary's engagement in India underscores the commitment to making this plan a reality by leveraging international partnerships to foster economic growth and stability at home.

A significant aspect of the discussions will be the UK-India migration partnership. The Foreign Secretary will welcome progress in this area, which includes ongoing collaborative work on safeguarding citizens and securing the borders of both countries. Addressing migration remains a high priority for the government, and Lammy is focused on working with global partners to enhance the UK's border security.

Reflecting on the evolving relationship, Foreign Secretary David Lammy stated, "India was one of my first visits as Foreign Secretary, and since then has been a key partner in the delivery of our Plan for Change. Our relationship has gone from strength to strength – securing our future technologies, adding over £25bn in trade every year between our countries and deepening the strong links between our cultures and people." He further emphasized that "Signing a free trade agreement is just the start of our ambitions - we’re building a modern partnership with India for a new global era. We want to go even further to foster an even closer relationship and cooperate when it comes to delivering growth, fostering innovative technology, tackling the climate crisis and delivering our migration priorities, and providing greater security for our people."

To further bolster economic ties, the Foreign Secretary will also meet with leading figures in Indian business. These meetings will explore avenues to unlock even greater investment by Indian businesses in the UK. The existing investment relationship is robust, supporting over 600,000 jobs across both countries, with more than 950 Indian-owned companies operating in the UK and over 650 UK companies established in India. Notably, in 2023-24, India was the UK’s second-largest source of investments by number of projects for the fifth consecutive year.

The talks will also serve to take stock of the progress made under the commitment by the UK and Indian Prime Ministers to advance an ambitious UK-India Comprehensive Strategic Partnership. The recently concluded trade deal is a prime example of the significant strides made since the last meeting between Foreign Secretary Lammy and his Indian counterpart.

Recent collaborative successes highlight the deepening ties. In May, the UK and India signed a new UK-India Programme of Cultural Cooperation. This agreement is set to boost collaboration across the arts and culture, creative industries, tourism, and sport sectors. It is expected to open doors for increased UK creative exports to India and enable more partnerships between UK and Indian museums and cultural institutions, thereby enhancing UK soft power.

Furthermore, at the 13th UK-India Economic and Financial Dialogue (EFD) in April, Chancellor Rachel Reeves welcomed £400 million of trade and investment wins. These are poised to boost both the British and Indian economies, delivering economic growth and security for working people in both nations.

The visit also builds on previous initiatives, such as the landmark UK-India Technology Security Initiative announced by David Lammy during his first official visit as Foreign Secretary in July of the previous year. This initiative is fostering crucial collaboration on telecoms security and unlocking investment across emerging technologies, including telecoms, critical minerals, AI, quantum computing, health/bio tech, advanced materials, and semiconductors.

In addition to economic and cultural matters, the Foreign Secretary is expected to address recent regional security concerns. This includes discussing the recent escalation in tensions following the Pahalgam terrorist attack and exploring how the welcomed sustained period of peace can be best supported to ensure stability in the region.

The Foreign Secretary's visit and the ongoing efforts are supported by endorsements from some of India’s top business leaders, who recognize the potential of the trade deal to increase opportunities for trade and investment between the UK and India. This diplomatic engagement also comes ahead of the anticipated launch of the UK’s modern Industrial Strategy, which aims to make it quicker, easier, and cheaper to do business in the UK.

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