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  • Writer's pictureAlpesh Patel

Trade, Tariffs, and Cricket: Navigating the New Challenges in UK-India Relations

Updated: Mar 16

Britain has a trade deficit with India, principally due to the amount of oil we import from India.


My notes: (1000% tariff on English willow in Indian cricket bats). 



1. UK-India Trade Relations at a Glance Total trade in goods and service (exports plus imports) between the UK and India was

£38.1 billion


 India was the UK’s 12th largest trading partner – 2.1% of UK trade

 

 14th largest export market (accounting for 1.7% of total UK exports

 

This means the UK reported a total trade deficit of £8.3 billion with India, compared to a trade deficit of £4.0 billion in the four quarters to the end of Q3 2022.


UK officials flew back from New Delhi on Thursday night and Friday, 

 

2. Background and Credential Verification

Background and credential verification of executives of companies the UK authorities required a separate credential verification for executives of companies who are required to work on projects in the UK. Solution: UK access Indian police KYC database

 

3.   Mutual acceptance of credit history; 

 a.  Banks and financial institutions including credit card issuers do not consider the credit history of India based executives who come to the UK to work on certain projects. 


4.   Allowing Indian Banks to operate as Branch:

As per current UK regulatory guidelines, overseas banks are allowed to operate as a branch structure (vs subsidiary structure) for wholesale business and retail business with local deposit taking up to GBP 500 million on a case-to-case basis. 

 

5.   Social Security Agreement: 

a. Indian employees on secondment to the UK also contribute significantly to the UK economy in terms of their spending, but changes to the immigration rules, with the abolition of the Short-Term ICT category of visa and the introduction of the Skills and Immigration Health Surcharge, are proving to be steps towards making the UK less competitive for Indian businesses


b. but the employers also suffer this double liability making it a hidden cost of trade and investment between our two countries.


c.  which would allow Indian employers and their seconded employees an exemption from National Insurance contributions for a similar period as that given to investors from US and other countries


Total bilateral trade between India and the UK increased to $20.36 billion in 2022-23 from $17.5 billion in 2021-22. (Similar to the EFTA group)



1. EFTA first Good for India & Swiss

a.  Also this is the right order for India. It puts pressure on others ABB Ltd. and elevator maker Schindler Holding AG, it gives Swiss companies an advantage over competitors from the UK, China and the US who can’t take advantage of such a free-trade deal, the group said.”


b. India’s trade minister says 1 million jobs will be created


c. India and four European countries signed a free trade pact that will see $100 billion binding invested in the South Asian country over 15 years and a million jobs created. [private sector and manufacturing]


2. UK Should Ask

a. Inward investment into AI, Space, Quantum, Cyber, Defence in UK – Indian VCs Alpesh Patel OBE


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