Market - - Nov 14,2016
UK Prime Minister Theresa May’s visit to India is being seen as an attempt to boost up the prevalent trade and investment ties between India and post-Brexit Britain.
May arrived in New Delhi on 6th November on her first official visit outside Europe since becoming the Prime Minister. This is an important visit, especially from May’s perspective as it will be her first step into forging new relations between the World and UK since it dumped the European Union in June 2016.
May will be on a 3 day visit on the invitation of Indian Prime Minister Narendra Modi. The duo will hold talks of reviewing and strengthening all aspects of the strategic and economic partnerships between the two countries. Post the meeting, they will also inaugurate a tech summit in New Delhi.
Interestingly, the two countries had a trade of $16 billion last year and UK has also accounted for 9% of India’s total foreign investment in the past 15 years. India being one of the world’s fastest growing economies with a GDP growth rate over 7% is logically the first choice for post-Brexit UK. The current export-import figures are also in India’s favor as India exports goods worth $8 billion and imports goods worth over $4billion from the UK.
India also has a lot on stake as there are over 1.5 million Indians residing in UK and a number of Indian companies, like the TATA Group, employs over 100,000 people in UK. India now accounts as the third largest employment provider in the UK. Visa and work permits for Indian students would be another notable point of this meeting. It is a widely known fact that May’s Government will be working on cutting down the inflow of immigrants into the UK.
The core motive of the meeting would however be bilateral relations pertaining to trade and economy. UK is not permitted to do any independent trade agreement until it formally leaves the EU, but looking for possibilities in the international market is the prime agenda of Theresa May’s government.