DNA Edit: Promising future

Prime Minister Narendra Modi’s ongoing four-day UK visit has already reaped a windfall for India. With Britain exiting the EU, it needs trade partners and markets to negotiate an uncertain future. Firming up an alliance with the second-fastest growing economy in the world is a win-win deal for both nations. In fact, a slew of Indian investments, worth cumulatively 1 billion pounds, will create new employment opportunities or at least safeguard the jobs of thousands of Britishers in the island country.

London and New Delhi are building the edifice of partnership on the foundations laid by the Joint Trade Review that concluded earlier this year. PM Modi and his counterpart Theresa May are keen on exploring new technologies – such as developing driverless cars, virtual reality and artificial intelligence – which are touted to be growth drivers in the coming years. There is a renewed thrust on clean energy and renewables with a 500-million-pound fund set up for that purpose. Aware of India’s growing proximity with Israel, PM May, buoyed by the stupendous success of the UK-Israel Tech Hub, is eager to tap into India’s vast potential. British universities and businesses will partner with Indian states, the central government and the private sector to increase investments in technologies and research and development. Both countries have heavily invested in each other’s economy.

Since 2000, UK’s systematic investment to the tune of 17.5 billion pounds has given a major boost to employment in India’s organised private sector. According to the UK’s Department for International Trade, 2017 saw an increase of 15 per cent in the volume of trade with India than 2016, with last year’s figures pegged at 18 billion pounds. According to the Confederation of Indian Industry, India is the third largest investor in the UK – in 2016, around 800 Indian companies were conducting business in the European country and were instrumental in employing 110,000 people. In India, UK businesses account for one in every 20 jobs in the private sector.

However, India has one Achilles heel: the difficulty in doing business. Despite PM Modi’s best efforts, there hasn’t been any significant improvement in the process of doing away with red-tapism and needless windows of clearance. Though India has jumped 30 positions in the 2018 World Bank rankings on the ease of doing business, and become part of the top 100 countries, thanks to the PM’s untiring efforts since the BJP came to power in 2014, it still has a long way to go. The hindrances on the trade and investment path have a direct bearing on the country’s economy.

Over the past few years, UK has seen tremendous potential in Indian sectors like education, retail, consumer goods, life sciences, healthcare, and infrastructure. These investments are aimed at helping India overcome the challenges to economic development and social welfare. The stage is set to take the bilateral relationship to the next level. The world is looking at India to end Chinese hegemony on the economic front. New Delhi can play a sterling role in creating a new world order.