India-UK relations

T he UK/India relationship is mutually beneficial and wide ranging; covering- development,

regional stability, trade and investment, climate change, counter terrorism and reform of the
global international systems.

We share the core values of democracy, pluralism and tolerance.

British society is enriched by its strong, dynamic human ties to India.  India gets the second
highest number of tourists from the UK. The UK’s largest visa operation worldwide is in India
and processed in the region of half a million applications in 2011. Between 1.5 million and 2
million people of Indian origin live in the UK, the largest ethnic group.

Partners in business
The UK and India are among the top investors in each other’s economies bringing significant
long term benefits to both.

UK exports to India are up by about 20 per cent and Indian exports to the UK are up 4
per cent. (Figure for services exports for this year is still awaited. This is the fig. for Q2
2013)

The UK aims to double its bilateral trade with India by 2015. India seeks to increase its
bilateral trade with the UK to £24 billion by 2015.

The UK is by far the most popular business destination in Europe for Indian companies, of
the 1200 Indian companies in the EU, 700 are in the UK.

Indian companies are playing an increasingly important role in the UK economy. Tata is one
of UK’s largest manufacturing employers.

Some recent UK success stories in India include:

 British Petroleum’s $7billion partnership with Reliance which will put the UK in the
lead among India’s investors.
 Serco’s recent investment of £385 million in Intelnet. 
 JCB’s Indian operation which is growing by 15% 
 United Biscuits (McVitie’s) who have invested about $1.6 billion in their first factory in
India. 
 Pearson’s school in Bangalore, the first in the world under its own brand name. 
 Whitbread, which plans to invest £75 million in India and will operate over 80
properties.
 AeroDNA from UK which is developing joint ventures and technology licensing
partnerships with nine Indian clients and UK aerospace SMEs - forecasting  
combined revenues of £2.2 billion within ten years from engineering services and
aerospace manufacturing.
 Business for Hawk Advanced Jet Trainer programme, BAE Systems from HAL
(Hindustan Aeronautics Limited) valued at £59 million.  
  The Warwick Manufacturing Group  have signed MOUs with IIT Kharagpur and the
new IIT in Bhubaneswar, and have established a joint UG internship and research
project programme with both IITs. This summer WMG will host 16 IIT interns.
 Chennai-based TVS Group, recently acquired Universal Components (UC) UK Ltd, a
leading independent wholesale distributor of Commercial vehicles’ parts and
accessories, their second acquisition after Multipart Holdings, UK in 2009. With this
investment, the TVS group turnover in the UK would cross US$180 million and
employ about 500 staff.
 Chennai-based SCOPE International UK has helped Standard Chartered Group
reduce its technology spend three-fold over the last ten years from 12% of US$18
billion revenues to about 3% of revenues. SCOPE’s 8,500 staff services most of the
75 countries where the Group has a footprint. Over 40% of staff in Chennai work on
core technology functions, representing about half of the bank’s technology capability
globally.
 Caparo has a US$ 100 million facility near Chennai (aluminium foundry, sheet metal,
R&D); Caparo supplied around 10% of components which went into the Rs.1 lakh
Tata Nano car. 
 GKN Driveline has a manufacturing and testing facility for automotive components
(£12 million). GKN has invested nearly £6.6m in their new forging facility, it’s first
wholly-owned forging unit in the Asia Pacific region. GKN is the world’s leading
supplier of driveline systems and solutions.

It’s not just the big companies. Among SMEs, recent successes include:

 CDE Asia Ltd. £1million iron-ore contract and a £10 million project to set up an iron-
ore beneficiation plant.
 Testplant, which has signed an international “Collaboration Agreement” with Wipro-
expected to grow at £1million per year.   
 Andrews Industries, Calex electronics and David Brown have also recently entered
the market.  

We continue to see strong Indian investment in the UK. Genser Aerospace has set up its
European headquarters in Manchester.  Havells Sylvania, which manufactures lighting
products in East Sussex, has moved its European headquarters from Frankfurt to London
and even more of its research and development operations to the UK.

Partners in the Knowledge Economy

Together, the UK and India are leaders in ensuring that knowledge sectors drive inclusive
economic growth in the 21st century. There is a significant increase in the UK/India
partnership on education, covering primary education, higher and further education and
research into the most advanced technologies.

There are over 80 collaborative UK-India programmes leading to UK degrees or awards in

India.  There are some 5,000 Indians studying for UK degrees in India.

The UK is the home of the English language. The UK leads in the teaching of Business
English providing skills for better employability in India. British Council is working towards
reaching 100 million English learners in the next few years and its Project English initiative
has impacted on 17 million learners across India. The British Council are helping train
750,000 English teachers and are now delivering English training under the SSA (Primary
Education for all Initiative) in the state of Assam and with the RMSA (Secondary Education
for all Initiative) in Bihar.

Scholarships
Up to 700 scholarship awards are offered to Indians by UK institutions each year, including
50 FCO-sponsored Chevening scholars. The scholarships offer highly coveted opportunities
for India's future leaders, decision makers and opinion formers. They help recipients hone
their leadership qualities by providing them with an opportunity to study in the stimulating
intellectual environs of Britain's leading institutions of higher learning. The Chevening Alumni
comprises leaders from civil society, academia, government, NGOs and business. At
present we have seven programmes up and running for Indian citizens-

 Chevening Gurukul Scholarships for Indian Leaders

 Chevening Rolls-Royce Science and Innovation Leadership Programme 
 Chevening South Asia Journalism Programme  
 Chevening IBPF programme for Parliamentarians 
 Chevening - Weidenfeld scholarships  
 HSBC Chevening Scholarships 
 Chevening Clore Scholarships for cultural Leaders

In 2012, the British Council and the UK Government launched a Jubilee

Scholarship program to enable 60 young Indian candidates to pursue a one year Masters
programme in Management, Manufacturing, Science and Technology in a recognised UK
institution, followed by a short term internship programme in the UK. This programme was
launched as part of Her Majesty the Queen’s Diamond Jubilee and the GREAT
campaign designed to focus on the areas of British excellence including its high quality
education provision. The scholars received funding for a one-year Masters course in the UK,
starting September 2012.

The 2006-11 UK-India Education and Research Initiative (UKIERI) has linked 475 schools
and higher education establishments in the UK and India. 2011 saw the launch of the
second phase of UKIERI with matched funding by UK and Indian governments (in the region
of £ 5 million over the next 3 years). The second phase of UKIERI will focus on four areas,
building a new generation of leaders, innovation partnerships, skills development and
enhancing mobility.

UK and India researchers collaborate in a wide range of areas, including issues of global
concern. Research Councils (RCUK) Office in India and the UK Government Science and
Innovation Network promote this work. In the last three years (2008-2011), joint research
collaboration between the UK, India and third parties has grown from less than £ 1 million to
over £ 80 million, covering a wide range of research themes helping to address global
challenges, such as energy, climate change, social sciences, healthcare and life sciences.
Partners in development 
The UK and India have a long history of collaboration on development which continues to be
a core part of the wider UK-India relationship. Both countries’ believe that a successful
development partnership is mutually beneficial to promote prosperity, combat poverty and
achieve the MDGs.

The Indian Finance Minister and the UK International Development Secretary agreed a new
approach to the UK–India development programme until 2015, reflecting the huge changes
in India and the need for the UK’s work to be additional and catalytic. The programme
focuses on India’s poorest states – primarily Bihar, Madhya Pradesh and Odisha - and will
help unlock the potential of the private sector to deliver jobs, products, infrastructure and
basic services. UK support is aimed at the poorest women and girls, to help them get the
quality schooling, healthcare, nutrition, and jobs which are the key to breaking the cycle of
poverty for the next generation. More and more, the UK - India development partnership is
about sharing knowledge and expertise, exchange of best practices, supporting innovation
and building capacity and skills.

The UK – India development partnership has helped deliver real results: 2.3 million people
lifted out of poverty in rural areas in the last 5 years, helped 1.2 million children to go to
school and to help India be free from Polio in the last ten years. Over time, the UK-India
development programme will transition from an aid-based relationship to a mutual, two-way
partnership on critical global issues, including trade, global growth, climate change, and food
security. 

Energy Security and Climate Change 

Climate Change is a fundamental threat to prosperity and security for both UK and India. In
order to meet energy demand and secure future growth, a low carbon, energy efficient
economic pathways need to be adopted across the world. The UK and Indian governments
have continued to enhance cooperation on sustainable development and green growth.
There has been good UK- India collaboration on low carbon policies and technologies and in
international negotiations on climate change, sustainable development and biodiversity. 

There is huge scope in India and UK to use low carbon approaches not only to fight climate
change but to deliver energy security, economic growth and inclusive development. 

Gregory Barker, Minister of State, Department of Climate Change and Energy visited India in
April 2012 to further enhance UK-India relations on sustainable development and to
encourage partnerships between the two countries. He also explored business opportunities
in the area of low carbon.

An Indian government and business delegation visited UK in February 2012 to share

experience and expertise on smart meters.
A group of Indian MPs enhanced people-to-people ties when they visited UK in April 2012,
building relationships with UK parliamentarians and exchanging views with business,
academics and NGOs on climate security and climate science. 

UK and India are also funding joint research on sustainable energy. Collaboration with
Government of India includes solar energy, fuel cells, smart grid and bio energy which are
helping both countries to be energy secure.

Partners in security
Both the UK and India have suffered serious terrorist attacks over the years and are among
the strongest proponents of international co-operation to counter terrorism and extremism.
The UK and India are strategic partners in this field. Bilateral operational links are expanding
and deepening, close cooperation around the 2010 Delhi Commonwealth Games
represented a significant security success.

The UK-India defence relationship has never been stronger. The bilateral programme of
exercises, exchanges, training courses and high-level visits across all Services continues
apace.  Defence equipment co-operation includes supply of AW101 helicopters and Hawk
Advanced Jet Trainers. The recent visit of HMS Daring – the first of the new Type 45
Destroyers – to Mumbai was a great success and provided an excellent opportunity for UK
Defence companies to showcase the best of British defence technology.