UK Prime Minister Theresa May has chosen India as her first visit outside of the European Union after taking office. She offered India a possible improved visa deal as part of increased defense and trade ties, but it comes with conditions.
Indian Prime Minister Narendra Modi (R) and visiting British Prime Minister Theresa May attend a joint press conference at Hyderabad House in New Delhi, India, Nov. 7, 2016. British Prime Minister Theresa May arrived in New Delhi late Sunday night on a three-day trade-focused visit aiming at bolstering bilateral ties in the key areas of trade, investment, defence and security. (Xinhua/Partha Sarkar)
UK's Prime Minister Theresa May's India visit comes with a one point agenda - to increase trade with the fastest growing major economy in the world. She described India as having limitless potential in various sectors - spanning from Information technology to defense.
May said, "The potential to expand the commercial opportunities for both our countries is huge and on this visit alone more than 1 billion pounds of business deals will be signed."
"There is much more we can do. We are both firm supporters of free trade. We both want to be great exporting nations and so we should work together for the long haul to break down the barriers to trade and investment."
Indian companies invest more in the UK than all of European Union. Indian companies are third largest employer of people in the UK.
As UK prepares for Brexit and looks at economies outside of the European Union, it wants India to be a key partner.
But the future of trade between India and the UK is related to visa regulations. In the last 5 years, the number of Indian students enrolled in UK universities has dropped by 50%, this because regulations have been made tough that don't allow them to continue to live and work in the UK once they have finished their studies.
Only last week UK increased the salary threshold for Indian companies that transfer staff from India to the UK.
The threshold was increased from 24,800 pounds a year to 30,000 pounds a year. The route which is largely used by Indian IT companies having offices in the UK would particularly impact them.
Modi said, "We have also agreed to establish a joint working group on trade. We believe that such a group should not only focus on ways to increase trade in goods but also on the expansion of services, trade including through greater mobility of skilled professionals."
The UK Prime Minister though offered an improved visa deal, but with a condition.
May said, "The UK will consider to our visa offer if at the same time we can step up the speed and volume of returns of Indians with no rights to remain in the UK."
Despite the issues, India and the UK have decided to set up committee for defense and security partnership which could include possibility of British companies to setting up joint development ventures with Indian companies.
Cooperation would also be extended to other sectors for higher bilateral trade with post-Brexit Britain.
