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Strong Indo-British ties still have a long way to go

Rajesh Mehta, Badri Narayanan Gopalakrishnan & Srujanee Mishra

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While the UK has been making consistent efforts in strengthening its ties with India following Brexit and the rapidly changing geopolitical landscape, there are many areas which have huge untapped potential with many missed opportunities. A Free Trade Agreement (FTA) was discussed in the 14th Joint Economic and Trade Committee meeting (JETCO). The British Commission said that the UK’s new Global Tariff Schedule will bring benefits of up to £40 million per year for Indian exporters if all the duties are levied. This will contribute to the UK’s pledge of an increasingly open trade upon Brexit. The UK and India must prioritise laying groundwork for an FTA in the near future. They should address issues like non-trade barriers for high skilled professionals in the UK. Despite being the second largest market for Indian tech companies for service exports, the UK has tough non-trade barriers like National Insurance that result in Indian professionals forfeiting the entire amount paid in as it requires at least ten years of contribution to gain entitlement. India should be added to the list of low-risk countries for movement of skilled workers to ensure an easy flow.

The Group CEO of UK India Business Council (UKIBC), Jayant Krishna, says: “To advance the bilateral economic partnership, UKIBC would strengthen its support to the UK and Indian industry, encouraging bilateral trade and investment. Both countries’ nominal GDP has grown to a comparable size and they are now working to overcome the economic crisis induced by the pandemic. It is a critical time for both countries as the UK readies itself for a post-Brexit world, and India establishes itself as a significant global economy.”

 The UK is ranked 17th in the list of India’s trading partners, with trade in goods as $14.5 billion and in services as $7 billion. It is ranked the fourth among the largest investors in India with a cumulative equity investment of $26 billion since April 2000, with around 6% of all FDIs into India. High potential areas include healthcare, agriculture, R&D, financial services: fintech, green finance, cybersecurity and insurance.

The UK and India work together on AI for better healthcare, fintech for financial inclusion and payments solutions and cyber security to protect assets from virtual threats, with the UKIndia research partnership including 200 projects, 175 research-institutions and 100 industry-partners. This marks the beginning of a partnership to build an innovation ecosystem with regular exchange of ideas and emerging technologies, and renewed support for entrepreneurs and innovators.

 India is the third largest investor in the UK (850 companies earning £48 billion, employing 105,000 people), with 1.5 million Indian diaspora in that country. The downside of Brexit is that India has seen the UK as the gateway to Europe for decades. The UK can support Indian companies by providing financial incentives and tax breaks. Meanwhile, India should reduce corporate taxes and progress in data privacy. UKIBC has suggested an approximate 3% decrease in corporate tax which will potentially make India a more attractive destination for investments as such taxation issues are eliminated.

Advanced manufacturing and engineering requires strong Intellectual Property enforcement. India needs to adopt a more liberal, fair and transparent approach to personal data protection. To achieve the vision of Ayushman Bharat, India could greatly benefit from UK in designing a regulatory framework for drug pricing which ensures the balance between pharmaceutical sustainability and affordability for Indian citizens. An underutilised UK-India partnership would be that of legal, professional and financial services for which India serves as a huge potential market. The insurance sector has a huge untapped potential for collaboration with UK. Another critical area would be mutual recognition of professional qualifications allowing knowledge exchange and mobility.

 Amidst the pandemic and geo-political tensions with China, many UK companies are increasingly looking to diversify their manufacturing base out of China. While India provides highly trainable and cost-effective labour, substandard infrastructure in ports/highways/logistics, increases production costs. India has to reform its FDI policies for a hassle-free process for foreign investors.

The new UK Health and Care Visa for critical healthcare professionals from around the world, makes it much easier for health professionals to work in the UK under NHS, as they will be exempted from the annual Immigration Health Surcharge. Such policy changes make it easier for Indians to work in the UK, have access to the best of British institutions and further strengthen the UK-India dynamic by a shared ecosystem of cuttingedge technology, top talents, and R&D. Furthermore, a New Graduate Route, anticipated to commence from 2021, will allow international students to stay in the UK upon completion of their studies. This will help skilled international students to work in the UK’s skilled sector and boost its economy.

 In light of emerging defence, technological and industrial priorities, and opportunities due to the changing landscape of geopolitical relationships, the bilateral military ties between India and the UK need to be reinforced. With Defence and International Security Partnership (DISP) established in November 2015, more meaningful defence dialogues about strategic convergence and threats to mutual interests will strengthen this relationship.

Focussing on defence industrial collaboration is a critical aspect of defence ties between the two countries. UKIBC has established an Aerospace and Defence Industry Group which may contribute to Aatmanirbhar Bharat as it builds an ecosystem for Indian defence manufacturing, helping achieve India’s vision of indigenous defence modernisation, in line with the 9 August announcement by the Defence Minister.

 The UK could take advantage of India’s extensive industrial capacity to build scale and lower costs for a competitive edge in the exports market. The establishment of ADIG helps improve the ease of doing business in India by British defence companies. In this time of crisis, UK-India collaboration in vaccine trials and potential vaccine manufacturing (Oxford University-Serum Institute) can be a stepping stone to many opportunities in the future, as India is increasingly gaining prominence in the global economic and political map.

Rajesh Mehta is a leading International Consultant and Policy Professional. Badri Narayanan Gopalakrishnan is Founder Director of Infinite Sum Modelling, and affiliate faculty member at University of Washington, Seattle. Srujanee Mishra is a researcher at Infinite Sum Modelling.

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RUSSIA WILL ACCEPT CONDITIONAL HANDOVER OF CYBER CRIMINALS TO US, SAYS PRESIDENT PUTIN

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Three days before the US-Russia summit, Russian President Vladimir Putin on Sunday said that the two countries need to engage in a constructive dialogue and establish mechanisms for interaction as there are areas in which Moscow and Washington can cooperate.

“[We need] to restore our personal contacts, relations, establish a direct dialogue, create really functioning mechanisms of interaction,” Putin said in an interview broadcast by the Smotrim.ru media outlet. The President noted that the US side is well aware that there are a number of areas that are of mutual interest, such as strategic stability, regional conflicts, environmental protection measures, and climate. “There are areas in which we can really work effectively,” Putin added.

In the process, President Putin said that Russia would be ready to hand over cyber criminals to the United States if Washington did the same for Moscow and the two powers reached an agreement to that effect.

The Russian leader said he expected the Geneva meeting to help establish bilateral dialogue and revive personal contacts, adding that important issues for the two men included strategic stability, Libya and Syria, and the environment.

Putin also praised Biden for having shown “professionalism” when the United States and Russia agreed this year to extend the New START nuclear arms control treaty.

The White House has said Biden will bring up ransomware attacks emanating from Russia at the meeting. That issue is in the spotlight after a cyberattack disrupted the North American and Australian operations of meatpacker JBS USA.

A Russia-linked hacking group was behind that attack, a US source familiar with the matter said last week.

Asked if Russia would be prepared to find and prosecute cyber criminals, Putin said Russia’s behaviour here would depend on formal agreements being reached by Moscow and Washington.

Both sides would have to commit to the same obligations, he said.

“If we agree to extradite criminals, then of course Russia will do that, we will do that, but only if the other side, in this case the United States, agrees to the same and will extradite the criminals in question to the Russian Federation,” he said.

“The question of cyber security is one of the most important at the moment because turning all kinds of systems off can lead to really difficult consequences,” he said.

With agency inputs

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12 killed, 138 injured in gas explosion in China

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HUBEI: At least 12 people were killed and 138 were injured in a huge gas explosion in central China on Sunday, state media reported.

A gas pipe exploded in the Zhangwan district of Shiyan city, in Hubei province at about 6:30 am local time. The number of casualties is still being verified as the search and rescue operation is underway. According to the local authorities, 150 people have been pulled from the debris, and the injured are being treated at local hospitals.

Apparently, the explosion destroyed a wet market there and greatly affected nearby residents. “Hearing the loud bang, I immediately scrabbled beneath the table, thinking it was an earthquake,” a resident surnamed Liu, told the Global Times via phone.

Images are circulating on social media, which appeared to be from the scene, showed rescue workers in orange jumpsuits working through the wreckage of flattened houses.

The cause of the accident is under investigation, according to the city government, which informed on the Chinese microblogging platform Weibo.

Rescue operation is underway and more details are awaited. ANI

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SAUDI ARABIA BARS FOREIGN PILGRIMS FROM HAJJ DUE TO COVID-19

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Amid the raging Covid-19 pandemic, Saudi Arabia has once again barred foreigners to perform the Hajj, and set a limit of maximum of 60,000 pilgrims inside the Kingdom.

“Only 60,000 vaccinated residents and citizens living in the Kingdom will be allowed to perform this year’s Haj pilgrimage due to the ongoing coronavirus pandemic,” the Ministry of Haj and Umrah announced in a statement cited by Gulf News on Saturday. The Hajj is one of Islam’s five pillars. Every able-bodied Muslim who has affordability tries to visit it at least once in a lifetime.

“Against the backdrop of what the world is witnessing and due to the continuous developments of the coronavirus pandemic as well as the emergence of new mutations, Haj registration will be limited to residents and citizens from inside the Kingdom only,” the ministry also Twitted.

“Muslims between the ages of 18-65 and are fully vaccinated, or those who received their first dose at least 14 days prior, those who are vaccinated and have recovered from a Covid-19 infection are allowed to register,” the ministry added.

This is the second year in a row that Saudi Arabia limits the Haj pilgrimage to Muslims inside the Kingdom. However, only 10,000 Muslims were allowed to perform Hajj last year.

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US AND JAPAN DEEPEN TIES WITH TAIWAN, DRAGON FINDS ITSELF IN TIGHT SPOT

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The US and Japan have been deepening their engagement with Taiwan to help guard it against a growing threat from China. The move has out Beijing in tight spot.

J. Michael Cole, writing in The National Interest said that the regime in Beijing, which continues its effort to isolate Taiwan internationally, is now in the difficult position of having to express its discontent over coronavirus response while avoiding overreaction that could create the rationale for even closer relations between Taiwan and other countries. Taiwan has had a fairly positive past month in terms of its engagement with, and support by, regional partners.

Beijing’s setbacks began back in April, with the joint statement between US President Joe Biden and his Japanese counterpart, Prime Minister Yoshihide Suga, which “underscore[d] the importance of peace and stability across the Taiwan Strait and encourage the peaceful resolution of cross-Strait issues.”

Such direct reference to Taiwan by a Japanese prime minister had not been heard for more than half a century, reported The National Interest. This was followed the next month by a similar statement, this one by President Biden and South Korean President Moon Jae-in, which again “emphasise[d] the importance of preserving peace and stability in the Taiwan Strait”.

The unprecedented reference to Taiwan by a South Korean leader also signalled those countries within the region were becoming increasingly alarmed with China’s destabilising behaviour—particularly the high number of intrusions by aircraft from the People’s Liberation Army Air Force and Navy into Taiwan’s southern Air Defense Identification Zone (ADIZ), wrote Cole.

Four days before the Biden-Suga joint statement, a total of twenty-five PLA aircraft–14 J-16 multi-role fighters, four J-10 multi-role fighters, four H-6K bombers, 2 Y-8 anti-submarine planes, and one KJ-500 airborne early warning and control plane–entered Taiwan’s ADIZ, a new high since the PLA began intensifying its military activity in the region in 2020, reported The National Interest.

But now, China is in a tight spot as Taiwan is receiving more attention from allies. One strategic mistake Beijing may have committed earlier this year was its refusal to reduce its military activity around the Taiwan Strait during the transition period in Washington, wrote Cole.

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WHO chief asks China to cooperate with probe into Covid-19 origins

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Tedros Adhanom Ghebreyesus.

World Health Organization (WHO) chief Tedros Ghebreyesus has called on China to cooperate with the ongoing investigation into the origins of the Covid-19 amid renewed call to further probe the virus.

Dr Tedros made these remarks after taking part in the Group of Seven (G7) summit by video conference on Saturday, The Wall Street Journal (WSJ) reported.

The WHO Director-General hoped there would be better cooperation and transparency when the next phase of the probe into the virus’s origin is underway. “As you know we will need cooperation from the Chinese side,” he said. “We need transparency to understand or know or find the origin of this virus…after the report was released there were difficulties in the data sharing, especially in the raw data.”

He further said that the preparations for the probe’s next steps were underway and that the issue of the origin of the virus was discussed by G7 leaders on Saturday, WSJ reported.

Earlier this week, the US and the UK had extended support to a “timely, transparent and evidence-based independent process” for the next phase of the WHO-convened study of Covid-19 origins. “We will also support a timely, transparent and evidence-based independent process for the next phase of the WHO-convened COVID-19 origins study, including in China, and for investigating outbreaks of unknown origin in the future,” a joint statement said after US President Joe Biden met British Prime Minister Boris Johnson on Thursday.

This comes amid growing calls for a timely, transparent, and evidence-based independent process for the next phase of the WHO-convened origin study.

Recently, the calls to investigate further the origins of the virus have intensified. President Biden has also ordered a fresh US intelligence inquiry into the origins of the pandemic.

The origin of novel coronavirus that caused havoc around the world has remained a mystery even after 1.5 years the first case of infection was reported in the Chinese city of Wuhan.

Now, scientists and world leaders are calling for further investigations to figure out whether the virus originated naturally or leaked from the Wuhan Institute of Virology.

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G7 NATIONS CALL OUT CHINA OVER XINJIANG, HONG KONG AND TAIWAN

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In a veiled criticism of the Dragon, Group of Seven (G&) leaders called on China to respect human rights in its Xinjiang region, allow Hong Kong a high degree of autonomy, and refrain from any unilateral action that could destabilise the East and South China Seas, Reuters reported quoted a draft version of the G7 summit communique.

“We will promote our values, including by calling on China to respect human rights and fundamental freedoms, especially in relation to Xinjiang and those rights, freedoms and high degree of autonomy for Hong Kong enshrined in the Sino-British Joint Declaration,” the G7 said in a communique that was almost finalised.

Before the G7 criticism emerged, China cautioned G7 leaders that the days when “small” groups of countries decided the fate of the world were long gone.

The G7 also said they underscored “the importance of peace and stability across the Taiwan Strait, and encourage the peaceful resolution of cross-Strait issues”.

“We remain seriously concerned about the situation in the East and South China Seas and strongly oppose any unilateral attempts to change the status quo and increase tensions.”

“We also call for a timely, transparent, expert-led, and science-based WHO-convened Phase 2 Covid-19 origins study including, as recommended by the experts’ report, in China,” the communique, which is almost finalised, said.

“The days when global decisions were dictated by a small group of countries are long gone,” a spokesman for the Chinese embassy in London said.

“We always believe that countries, big or small, strong or weak, poor or rich, are equals, and that world affairs should be handled through consultation by all countries.”

Beijing has repeatedly hit back against what it perceives as attempts by Western powers to contain China, and says many major powers are still gripped by an outdated imperial mindset after years of humiliating China.

UN experts and rights groups estimate over a million people, mainly Uyghurs and other Muslim minorities, have been detained in recent years in a vast system of camps in Xinjiang.

China denies all accusations of forced labour or abuse. It initially denied the camps existed, but has since said they are vocational centres and are designed to combat extremism. In late 2019, China said all people in the camps had “graduated”.

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