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regular-article-logo Saturday, 04 May 2024

British PM Johnson signals visa flexibility with India to win trade deal

India wants greater opportunities for Indians to live and work in Britain

Reuters Ahmedabad Published 21.04.22, 08:53 AM
UK PM Boris Johnson arrives in India on a two-day visit

UK PM Boris Johnson arrives in India on a two-day visit Twiiter/@Bhupendrapbjp

British Prime Minister Boris Johnson will announce a raft of commercial agreements and hail a "new era" in bilateral trade and investment ties during his visit to India, the UK High Commission said on Thursday shortly before he landed in Gujarat.

Johnson visited Mahatma Gandhi's Sabarmati Ashram on Thursday morning. He was accompanied by the Gujarat chief minister and was presented with a copy of 'The Spirit's Pilgrimage' written by Madeleine Slade (or Mirabehn), who was a British supporter of Indian independence and a disciple of Mahatma Gandhi.

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Boris Johnson being presented a memento as Gujarat Chief Minister Bhupendra Patel looks on, during his visit to the Sabarmati Gandhi Ashram, in Ahmedabad

Boris Johnson being presented a memento as Gujarat Chief Minister Bhupendra Patel looks on, during his visit to the Sabarmati Gandhi Ashram, in Ahmedabad PTI picture

Message left by Boris Johnson at the Gandhi Ashram in Sabarmati, Ahmedabad.

Message left by Boris Johnson at the Gandhi Ashram in Sabarmati, Ahmedabad. Twitter

“It is an immense privilege to come to the Ashram of this extraordinary man, and to understand how he mobilised such simple principles of truth and non-violence to change the world for the better," read the message by UK PM Boris Johnson at Gandhi Ashram, Sabarmati, Ahmedabad.

It said the UK and Indian businesses will confirm more than one billion pounds ((1 GBP= Rs 99.63) in new investments and export deals in areas from software engineering to health, creating almost 11,000 jobs across the UK.

"As I arrive in India today, I see vast possibilities for what our two great nations can achieve together. From next-generation 5G telecoms and AI to new partnerships in health research and renewable energy -- the UK and India are leading the world," Johnson was quoted as saying by the high commission.

"Our powerhouse partnership is delivering jobs, growth and opportunities for our people, and it will only go from strength-to-strength in the coming years," he said.

Johnson will hold talks with Prime Minister Narendra Modi in New Delhi on Friday after concluding his engagements in Gujarat on Thursday.

The two leaders are expected to delve extensively to further expand ties in various key sectors including defence and trade besides exchanging views on the crisis in Ukraine.

In a statement, the high commission said Johnson will use his visit to India to "boost our collaboration with one of the world's fastest growing economies, slashing trade barriers for UK businesses and driving jobs and growth at home."

It said the UK will confirm major new science and tech collaboration, including a digital health partnership and a joint investment fund for Indian deep-tech and AI start-ups, supported by the UK and Indian governments.

"As he moves on to New Delhi on Friday, the prime minister will also use this week's visit to drive progress in negotiations on the landmark UK-India free trade agreement, which is expected to help double our trade and investment by 2030," the high commission said.

"Negotiating teams will hold their third round of formal talks in India next week," it said.

The high commission said work is already progressing on cutting red tape for businesses following the UK-India Enhanced Trade Partnership launched by both prime ministers last year.

"And today our governments will announce new measures to make it easier to export UK-made medical devices to India. This will support UK jobs and create opportunities for British med-tech companies like Redcar-based Micropore Technologies to sell their lifesaving products in India, an import market worth 2.4 billion pounds," it said.

In Gujarat, the British prime minister is scheduled to visit a new factory being opened by a top British firm as well as a biotechnology university working in collaboration with the University of Edinburgh.

The new investments worth one billion pounds will include setting up of a new Switch Mobility electric bus R&D centre in the UK and the opening of their Asia Pacific headquarters in Chennai.

The new initiatives also include Indian firm Bharat Forge and electric truck maker Tevva Motors expanding to a new site in the south-east and creating 500 new jobs and Indian software company Mastek investing 79 million pounds to create 1600 jobs over the next three years all over the UK, according to the high commission.

It said the new investments will also include business consultancy FirstSource opening new offices in South Wales, the Midlands and cities in the North-East and North-West and Hertfordshire-based firm Smith & Nephew agreeing to a major export deal to sell robotic surgical systems in India.

The India-UK relationship was elevated to a Comprehensive Strategic Partnership during the India-UK virtual summit held between Modi and Johnson in May last year.

At the summit, the two sides adopted a 10-year-roadmap to expand ties in key areas of trade and economy, defence and security, climate change and people-to-people connections among others.

Speaking on the plane on his way to the world's second-most populous country, Johnson signalled he was ready to be more accommodating on an issue that could have stalled the talks.

"I have always been in favour of talented people coming to this country," Johnson told reporters. "We are short to the tune of hundreds of thousands of people in our economy and we need to have a progressive approach and we will."

Britain has made getting a trade deal with India one of its post-Brexit priorities as ministers, free from the European Union's common trade policy, look to gear policy towards faster-growing economies around the Indo-Pacific region.

India wants greater opportunities for Indians to live and work in Britain. Any trade deal will likely be contingent on relaxing rules and lowering of fees for Indian students and professionals going to the country. India and former colonial power Britain already share strong trade ties, and more than a million people of Indian origin live in Britain after decades of migration.

Britain wants to tap into the wealth of India's middle classes and their appetite for premium British products such as Scotch whisky. They also hope that India can become a customer of its green technology and that service trade can also be strengthened. Britain has said the trade deal could almost double British exports to India, and by 2035 boost total trade by 28 billion pounds ($38 billion) per year. Total trade in 2019 was worth 23 billion pounds, according to British statistics.

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