The world’s centre of gravity is moving East
THE Prime Minister, who leads a delegation of senior ministers including George Osborne, William Hague and Vince Cable to India this week, is right to commit his government to building a “special partnership” with Delhi.
The world’s centre of gravity is moving East. Washington is shifting its attention from its post WWII Atlantic allies to new ones in Asia. As a medium sized power located in the world’s slowest growing regional economy, the UK needs to adapt.
Our relationship with India is unique. We have a shared history, cultural affinity and growing commercial inter-dependence. Despite our colonial baggage, modern India regards the UK as a trusted friend.
But upgrading from close friend to indispensable ally will not be easy. India, the world’s largest democracy with a population of over 1bn people and a fast-growing economy is not short of suitors. The UK has been losing influence and market share in India, most especially to the US, over many years. The UK is now India’s 13th largest trading partner with 2.6 per cent of India’s trade, down from 3.7 per cent five years ago.
Cameron should start by appointing a senior political figure as High Commissioner in Delhi. This individual should have direct access to Downing Street, and be willing to commit five years to the role; enough time to build deep relationships with the government of India (relationships are fundamental to getting anything done in India), and political leaders.
Next, he should ask Vince Cable to help UK firms compete across the sub-continent. Appointing a charismatic business leader as Deputy High Commissioner in Mumbai would help. The first priority should be to simplify UK plc’s representation in India. At the moment a bundle of organisations overlap and often compete for the attention of the Indian government and business; these include the UKTI, the UK India Business Council, the three devolved governments, The Mayor of London (two offices – a Ken Livingstone legacy), the Regional Development Authorities, the City of London, the CBI, British Business Groups in every major Indian city and the UK India Round Table.
Britain, the global economy’s hub of choice, needs to persuade the next generation of Indian entrepreneurs to use London and other UK cities as a base for their start-ups. Theresa May should study the generous loopholes in visa restrictions that the US government offers Indians bringing capital and new jobs into America.
Michael Gove has an opportunity to strengthen educational links between the world’s largest English speaking country, and its oldest. UK universities are highly respected in India, but its young population prefers to study in the US. A scholarship scheme based on the Rhodes model could bring the brightest back to Britain – call it the ‘The Dadabhai Naoroji Scholarships’ after the first Indian elected to the House of Commons in 1892. The British Council is an under-utilised marketing network for UK universities. Give it a stronger focus. And encourage UK and Indian universities to expand their research collaboration.
Finally, William Hague should instruct diplomats in Brussels to focus efforts on completing negotiations on an India-EU Free Trade Agreement; these have been ongoing since 2007. This deal would benefit both countries, and campaigning for more global free trade would be a neat way for the British government to demonstrate that it believes the world’s largest trading bloc has a dynamic role to play in the post-crisis economy.
Alex Hickman worked for David Cameron as a foreign affairs advisor in 2006/7, and organised David Cameron and George Osborne’s visit to India in 2006.