India–UK relations have witnessed a significant revival in recent years, driven by shared democratic values, historical linkages, and complementary economic strengths. The signing of the India-UK Free Trade Agreement (FTA) and Comprehensive Economic and Trade Agreement (CETA) in 2025, alongside the Vision 2035 Roadmap, marks a transformative phase in bilateral ties.
Expanding Areas of Convergence:
Economic & Trade Cooperation:
- Bilateral trade: Reached USD 56 billion (2024); target USD 112 billion by 2030.
- The FTA grants 99% duty-free access to Indian exports; expected to benefit MSMEs, textiles, leather, gems, and jewellery sectors.
- The Double Contribution Convention (2025) exempts Indian professionals from double social security payments, aiding 75,000+ workers.
Defence & Security Cooperation:
- Launch of Defence Industrial Roadmap (2025) promoting co-design and co-production of equipment.
- Establishment of the 2+2 Ministerial Dialogue (2023) has deepened strategic coordination.
Technology & Innovation:
- India–UK Technology Security Initiative (2024) emphasises collaboration in AI, semiconductors, and cybersecurity.
- Joint Net Zero Innovation Virtual Centre promotes green hydrogen and clean energy R&D.
Education & People-to-People Ties:
- Over 170,000 Indian students’ study in UK institutions which got further strengthened with the launch of the Young Professionals Scheme.
- Indian diaspora (1.6 million, 2.6% of UK population) contributes via 65,000+ UK-based companies.
Climate & Sustainable Development:
- Cooperation under the India-UK Green Growth Equity Fund and Hydrogen Hub (2022) contribute to India’s target of 50% renewable power by 2030.
Persistent Challenges:
- Economic issues: UK’s post-Brexit visa restrictions clash with India’s demand for professional mobility. Extradition delays cases like Vijay Mallya and Nirav Modi highlight procedural rigidities.
- Tariff Disputes: India’s high import duties amounting to 150% on Scotch whisky delay FTA finalisation.
- Divergent Geopolitical Positions: India’s neutrality on the Russia–Ukraine conflict vs. UK’s pro-Ukraine stance.
- Environmental Protectionism: India’s concern over the UK’s Carbon Border Adjustment Mechanism (CBAM)hurting its steel exports.
Way Forward:
- Conclude FTA swiftly by balancing tariff sensitivities and market access.
- Institutionalise migration and mobility framework for skilled professionals.
- Deepen defence collaboration through joint R&D and manufacturing under Atmanirbhar Bharat.
- Promote cultural diplomacy and diaspora engagement as part of soft power outreach.
Conclusion:
The Vision 2035 blueprint and Comprehensive Economic and Trade Agreement offer a long-term, multi-sectoral framework. With sustained political will and mutual accommodation, the relationship can evolve into a “Comprehensive Strategic Partnership”, enhancing both nations’ roles in a multipolar world.
‘+1’ Value Addition:
- Bilateral Trade: USD 56 billion (2024), target USD 112 billion by 2030
- Indian diaspora of 1.6 million constitute 2.6% of UK population. There are 170,000 Indian students in the UK
- Climate investments such as India–UK Green Growth Equity Fund and Net Zero Innovation Virtual Centre boosts achieving Paris goals.
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