Relations between India and the UK are close. In the past few years, frequent and frank high-level bilateral consultations have helped to sensitise the UK leadership on a range of issues of concern to us. In the FCO strategy paper issued in December 2003, the UK identified India as a country with which it wanted to develop a strategic relationship, along with China, Japan and Russia.

Political
Defence
Environment
Economic
Science and Technology
Education
Culture
Round table
Indian Community in the U.K


POLITICAL

India-UK/ India �EU Summit September 6-8, 2005

2. Prime Minister Tony Blair (PMTB) visited India on 6-8 September 2005 in his capacity as EU President for the EU/India Summit and also in a bilateral capacity. This was the third meeting between the two Prime Ministers since the elections in May 2004. The bilateral Summit was held on September 8 in Udaipur, a day after the 6th India-eu Summit.�The delegation included Rt. Hon. Alan Johnson, Secretary of State for Trade and Industry and Dr. Ian Pearson, Minister of State for Trade responsible for trade policy and foreign affairs.

3. The bilateral Summit was in follow up to the pm's visit to the uk in September 2004 when the two Prime Ministers had adopted a joint declaration titled 'India-uk: towards a new and dynamic partnership', setting out plans for a comprehensive strategic partnership. The joint declaration envisaged annual summits as well as meetings between Foreign Ministers and outlined areas for future cooperation in civil nuclear energy cooperation, space, defence, combating terrorism, economic ties, science and technology, education and culture.

4. The two leaders exchanged views on a range of bilateral, regional and multilateral issues including un reform, cooperation against terrorism, the mdgS, climate change including technology transfers for sustainable development and education exchanges.�The two sides agreed to move forward cooperation in the civilian nuclear energy sector. The uk had reviewed its policy with regard to civilian nuclear technology cooperation and scientific contacts with India a few weeks prior to the visit. At the Summit it recognized the need for a supportive international environment for meeting India�s pressing energy requirements.

5. The two sides were in complete agreement on the need to strengthen cooperation against terrorism.�pmtb reaffirmed his commitment to India�s candidature for permanent membership of the expanded UN Security Council. pmtb urged a regular dialogue on regional issues.�The two sides finalised agreements on air services (substantially increasing the direct flights between the two countries) and cooperation in the field of hydrocarbons. An agreement on films co-production was initiated.

6. PM announced that India would found a Chair at Cambridge in honour of Pt. Jawaharlal Nehru. Pmtb announced a � 10 million UK/India education initiative, which will fund scholarships and short-term academic exchanges, provide research awards to young Indians to go to Britain and young British researchers to spend time in Indian institutions.

7. At the India-EU Summit on September 7, progress was achieved on co-operation in high technology areas, with the EU under the UK Presidency reiterating support for India�s participation in iter and initiation of a framework agreement on India�s participation in the Galileo Satellite Navigation Project.�At the press conference following the Summit, pm announced the decision of Indian Airlines to purchase 43 aircraft worth us $ 2.2 billion from Airbus.



Gleaneagles


8. PM participated at the G-8 Gleneagles Summit in the UK on 7th July 2005 during which he interacted with G8 leaders. PMTB was the first G8 leader to moot the idea of India joining G8 discussions at South Sea Island last year. It was due to PMTB�s initiative that leaders of five outreach countries including India, China, Brazil, South Africa and Mexico were invited at the Gleneagles summit.



Visits to India


9. Ministerial visits to India in 2005 included Ms. Patricia Hewitt�s visit to Delhi to launch JETCO with Commerce and Industry Minister on January 13. EU Trade Commissioner Peter Mandelson visited India as the EU�s Trade Commissioner from January 12-14 during which he participated at the �Partnership Summit� of the Confederation of Indian Industry (CII) in Kolkata and a seminar on �India-EU Strategic Partnership: Steps Ahead,� organised by the Federation of Indian Chamber of Commerce and Industry in New Delhi.�Elliot Morley, Minister for Environment and Agri-Environment, visited India from 3-6 February 2005 to attend the opening ceremony of the Delhi Sustainable Development Summit (DSDS), organised by Teri and also addressed the Summit�s Ministerial Session on 3 February. Lord Bach of Lutterworth, Under Secretary of State and Minister for Defence Procurement, led the British delegation to the fifth Aero India aerospace exposition at Bangalore on 9-13 February 2005. Ms. Tessa Jowell, MP, Secretary of State for Culture, Media and Sport visited India from March 27-31, 2005. Sir David King, Chief Scientific Adviser (CSA) to HM Government, visited India from 4-8 February 2005 to participate in the Delhi Sustainable Development Summit (DSDS) organised by TERI. Sir Nigel Sheinwald, Foreign Policy Adviser (FPA) to PM visited India from 26-27 April, 2005, and Bill Rammell, Minister of State for Lifelong Learning, Further and Higher Education, visited India from 31 July - 5 August 2005 to enhance bilateral ties and to explore possibilities for bilateral cooperation in the field of higher education. Prime Minister Tony Blair led the EU and UK delegations to the Indo-EU and bilateral Summits (6-8 Sept. 2005). British Defence Secretary John Reid visited India from October 5-7, 2005.�Mr. Jack Straw, Foreign Secretary, had paid his fifth official visit to India on 17-18 February 2005 (Mr. Straw has visited India nine times since he spent his honeymoon there).�During his visit to Amritsar he issued an apology for the Jallianwala Bagh massacre.



Visits to UK


10. Among high level visits from our side to the UK have been those by Dr. Manmohan Singh, Prime Minister of India to attend the G-8 Summit at Gleneagles. The bilateral leg of the visit was foregone because of the London bombings. UK. External Affairs Minister Shri K. Natwar Singh visited the UK on June 15-17 and September in 2004 and on March 9 and June 27-28 in 2005.

11. Other visits included those by Shri Arjun Singh, Minister for Human Resource Development (12-15 October, 2005); Shri Kamal Nath, Minister for Commerce & Industry on June 16-19 and October 8-14 in 2004, and on January 29, July 6-8 and October 13-14 in 2005;�Shri Kapil Sibal, Minister of State for Science & Technology and Ocean Development (June 23-25); Shri Praful Patel, Minister of State for Civil Aviation (July 2004 and May 2005); Shri Dayanidhi Maran, Minister for Communication & IT (September 25� 28, 2004 and 17-19 February, 2005); Smt Renuka Chowdhury, Minister of State for Tourism (October 2 � 4 and November 2 � 5, 2004) and Shri P. Chidambaram, Minister of Finance (October 8-9).�Finance Minister visited London again on February 3-5, 2005 at the invitation of Chancellor Gordon Brown to launch the Economic and Financial Dialogue.�Shri Mani Shankar Aiyar, Minister for Petroleum, Natural Gas and Panchayati Raj visited the UK on 19-23 January, 2005.�Shri Mufti Mohammad Syed, CM of J&K visited the UK to promote tourism & investment on 7-10 February, 2005.



Parliamentary groups


12. With the setting up of the Friends of India Groups in the UK Parliament, institutional linkages with all the major British political parties have been established to ensure that goodwill towards India cuts across party lines.

13. The Labour Friends of India (LFIN) launched in 1999 has sent five parliamentary delegations to India, the last in February 2004 and are scheduled to visit in February 2006. The Liberal Democrat Friends of India (Lib Dem FINs) was launched in September 2000 and sent delegations to India in September-October 2002, March 2004 and September 2005. The Conservative Parliamentary Friends of India launched in March 2001 have visited India in September - October 2003 and in September 2004. They will next visit India in January 2006. PMTB launched the annual LFIN luncheon on March 3, 2005.

14. An all-party group called the Indo-British Parliamentary Group (nicknamed the Curry Club) holds periodic meetings. Its Indian counterpart, the Indo-British Parliamentary Forum (IBPF) was launched in New Delhi in April 2003. A delegation from the IBPF led by Shri Jyotiraditya Scindia visited the UK in May 2003 and a second visit took place from 30 January- 5 February, 2005.

15. The Lords and Commoners Cricket Team paid a highly successful tour of India in December-January 2005, led by Mr Crispin Blunt, Captain of the British Parliamentary team. "Cricket diplomacy" reinforced the links between the two Parliaments. A return visit from India took place in Sept 2005.

16. Dr. Liam Fox, Shadow Foreign Secretary from the Conservative Party led a small delegation to New Delhi and met EAM and other Ministers as well as industry leaders. He expressed his deep satisfaction with the visit.�The receptions for the three friendship groups at the Party annual conferences were highly successful.



UN Security Council (UNSC) Reform and Restructuring


17. The UK has expressed support for India's candidature for permanent membership of the UN Security Council at the highest political level. However the UK does not favour the veto being extended to new permanent members. The UK had expressed support for the framework resolution put forward by G4 countries including India in early July. PMTB reiterated support to India's candidature at the summit.



Security/ Defence Issues


18. The UK acknowledges India's exemplary record in non-proliferation. On 9th August 2005 the UK Government announced that it had reviewed its policy on nuclear-related exports to, and scientific contacts with India, restrictions under which had hitherto exceeded its commitments under the Nuclear Non-proliferation Treaty (NPT), and as a member of the Nuclear Suppliers Group (NSG). Citing the shared aims of reducing carbon emissions, and stopping onward proliferation, the UK announced that it fully supported the India/CJS Joint Statement of 18th July. It would also encourage contacts between UK nuclear scientists and academics with their Indian counterparts. Official-level consultations on strategic issues held in London on March 14, 2005 witnessed a useful exchange of views on proliferation and bilateral issues. These were followed by the Foreign Office Consultations between Sir Michael Jay and Foreign Secretary of India Shri Shyam Saran. Foreign Secretary visited London again on June 2-5, 2005 to hold discussions with his British counterpart and other officials in preparation for Gleneagles.




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DEFENCE



19. Cooperation is undertaken under the Defence Consultative Group (DCG) formed in 1995. Shri Shekhar Dutt, Defence Secretary, led a delegation to the 9th India-UK Defence Consultative Group meeting from 26 to 28 September 2005 in London. A range of areas of bilateral cooperation were discussed including military reciprocal exchanges, joint Indo-UK exercises (a ten-day exercise Emerald Mercury was held in India in March 2005, the first of its kind between the two countries, which marked the biggest land deployment of British military personnel in India), research and technology and defence equipment collaboration. Dr John Reid, Secretary of State for Defence visited New Delhi following a visit to Pakistan on October 5, 2005.�He held consultations with RM, called India an important partner of the UK in dealing with international security challenges and supported India�s case for permanent membership of the UNSC as well as bilateral cooperation in civilian nuclear technology.

20. The MOU on the purchase of 66 Hawk Advanced Jet Trainers (AJT) from British Aerospace Systems of the UK for the Indian Air Force, 24 to be procured in flyaway condition and the remaining 42 to be manufactured under license in India by M/s. Hindustan Aeronautics Limited, was signed in March 2004. Cooperation also includes the �Konkan� series of bilateral exercises, product support for Sea King and Sea Harriers, training facilities offered by the Royal Navy and continuation of bilateral ship visits, including participation by two Indian ships INS Tarangini and INS Mumbai in the 2005 International Fleet Review to commemorate the 200th year celebration of the Battle of Trafalgar in 2005, and RN ships visiting Indian ports. The first Navy to Navy staff talks were held in September 2004 in New Delhi to be followed by second round on 4 to 8 September 2005 in the UK. Both sides have held bilateral seminars on UN peacekeeping.



Terrorism


21. The heightened threat to British security interests at home and abroad in the aftermath of the Iraq war, including the attacks on the British Consulate in Istanbul and on the British High Commissioner in Sylhet, and the 7/7 suicide bombings in London, has had a major impact on UK policy on terrorism.

22. In foreign policy, the FCO Strategy Paper released on December 2, 2003, identified international terrorism and the spread of weapons of mass destruction as the most �catastrophic� threats to the UK�s national security in the early twenty-first century, relegating conventional military threats to the background.�Henceforth the top priority of the UK�s security and defence policy would be to prevent states and international terrorist groups from acquiring or spreading WMD, prevent state failure, and tackle regional tensions, considered to be a major incentive for proliferation. The paper also identified religion as a force in international relations, with religious tensions abroad, for example on the sub-continent, having the potential to affect the UK�s domestic security.

23. In a bilateral context, official cooperation is under the aegis of the Joint Working Group to Combat International Terrorism and Drug Trafficking, which met in New Delhi in October 2003 and in London on June 27, 2005.�The UK has proposed India to join the Financial Action Task Force and to work with India to raise Anti-Money Laundering Standards.

24. In his remarks to the press following the September 2005 Summit, pmtb acknowledged that the world had been reluctant to recognize the insurgency in Jammu and Kashmir as terrorism. He added that whether it was in Palestine, Iraq, Afghanistan, Kashmir, or Chechnya - terrorism should never be compromised with nor ever justified, it being in the common interest to defeat it.

25. Both UK Prime Minister Tony Blair and Foreign Secretary Jack Straw have earlier called for an end to Pakistan�s support for terrorism in Kashmir.�Mr. Straw had acknowledged to Parliament that there was a clear link between the ISI and terrorist groups operating in J&K.�At the Joint Press Conference held in London between President Bush and Prime Minister Blair on the same day of the Istanbul bombings on November 2003, PMTB described the outrages as a struggle between fanaticism and extremism on the one hand, and freedom and tolerance on the other, and included Kashmir as one of the areas seriously affected by terrorism. In December 2003 Prime Minister Blair stated in Parliament that the key was for Pakistan to end all support to terrorism in any form. Following the Beslan atrocities, Jack Straw underlined the total culpability of terrorists. During the joint press conference with our Prime Minister in September 2004, PMTB totally condemned any terrorism in Kashmir, including the killing of innocents and the murder of elected politicians.

26. Domestically the Government has taken an increasingly tough line on anti-terrorism legislation.�On March 11 this year the Government was able to secure agreement to the Prevention of Terrorism Bill, which was controversial because it expanded the coverage of preventive detention provisions to domestic nationals as well as foreigners.�New legislation has been proposed to deal with the problem, which will make glorification of terrorism an offence.

27. The UK has just proposed (10th October) adding several terrorist organisations of concern to India to its proscribed list (which contains Lashkar e Tayyaba, Babbar Khalsa, International Sikh Youth Federation, The Liberation Tigers of Tamil Eelam, and the old Hizbul Mujahideen and Jaish e Mohammad). If approved, the following would be added to the UK list of proscribed terrorist organisations:
    

    • Harkat ul Jehad-e-Islami
    • Hizbul Mujahideen�- in its new incarnation Harakat-ul-Mujahideen/Alami (HuM/A) and Jundallah � the old HM was already on the banned list.
    • Jaish e Mohammed (JeM) in its new incarnation Khuddam ul-Islamand splinter group Jamaat ul-Furquan � the old JeM was already on the banned list.


MOU on Repatriation of Immigration Offenders


28. Indian nationals used to account for the highest (40%) number of asylum applications in the UK, with around 2000 Indian nationals applying in 2002. Since 2004, Iran, China and Somalia have overtaken India in the number of applications for asylum.�The number is expected to fall with the inclusion of India (2005) in the so-called �White List� of countries which do not pursue repressive policies and are deemed to have adequate human rights protection.�The decision will be notified after a parliamentary debate.�An MOU on the return of illegal immigrants was signed in January 2004, The duration of the MOU was extended up to 29 January, 2006 during Jack Straw�s visit in February 2005.



UK India Prisoner Transfer Agreement


29. An agreement on the Transfer of Sentenced Persons was signed by Home Minister, Shri Shivraj Patil and Foreign Secretary, Mr. Jack Straw in February 2005.



Visa Services


30. The increase in the number of visas issued by the High Commission in the past three years has ranged at over 20% annually.�In 2004, more than 312, 000 visas were issued.�Another notable feature is the increase in the business visas, which have doubled since 2002 to 19,000 in the first six months of 2005.�




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ENVIRONMENT



31. India and the United Kingdom signed a declaration that envisaged the two countries working closely together to find fresh approaches to global environmental, economic and social challenges during a visit by Shri A. Raja, Minister for Environment and Forests from 9 - 13 Oct. 2005.�The two sides agreed on a high-level sustainable development dialogue as part of an initiative by their Prime Ministers to strengthen ties on a range of areas including research, environmental impact assessment, public-private partnerships, sustainable forestry, illegal trade in animals, science and technology.�The United Kingdom has set up an India Task Force to aid cooperation and ensure that the environmental dimensions of growth and development are integrated into national policies.




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ECONOMIC

Bilateral Mechanisms


32. Bilateral mechanisms to take the economic relationship forward include the Joint Economic and Trade Committee (JETCO), the Economic and Financial Dialogue, a Joint Working Group on Power and the Indo-British Coal Forum.

33. As a follow up to the Joint Declaration of September 2004, JETCO was inaugurated in New Delhi on 13th January 2005 by Commerce & Industry Minister Shri Kamal Nath and Secretary of State for Trade & Industry Patricia Hewitt. It is expected to carry forward its work through creation of sectoral working groups.�The first Indo-UK Investment Summit under JETCO aimed at boosting two-way bilateral investments is expected to be held early in 2006 in India.

34. At the Indo-UK Summit, agreements on air services, IPRs, and an MOU on hydrocarbons were signed. The Prime Minister launched the CNBC India Business Awards during the Summit.

35. An Indo-British Economic and Financial Dialogue was launched in February 2005 in London between Minister of Finance Shri P. Chidambaram and Chancellor of Exchequer Gordon Brown on bilateral and global issues, financial systems, and to enhance economic and financial co-operation.

36. The industry-led Indo-British Partnership was established in 1993 and is steered on the Indian and British sides by CII and Department of Trade and Industry respectively.�Efforts are now on to convert this into a membership-based organisation with a high-level advisory board drawn from industry.�The British side has already launched an Indo-British Partnership Network (IBPN) in 2005, which is being followed up by CII.

37. CII leads an annual Mission of CEOs to the UK, sectoral industry delegations have met British counterparts, and India participates annually at the World Travel Mart in London and at other trade events. NASSCOM and Financial Times organise a Conference on Outsourcing to India every year in London.�FICCI brought a Mission of CEOs to London in October 2004.



Bilateral Trade


38. India is the UK's 15th largest export market, and the UK's largest export market in the developing world. Two-way trade of goods grew by 3% in 2004 over the previous year, reaching � 4583 million. The UK is the largest market in Europe for Indian IT services (12% of IT services exports - nearly $1 billion). India�s main exports to the UK are engineering goods, ready made garments, textiles, gold jewellery, foot wear, marine products, rice and agricultural products, etc.�The main imports from the UK are un-worked diamonds, metal waste, chemicals, machinery, transport equipment, scientific equipment, etc.

39. Many British blue chip companies (about 30) and some smaller companies have off-shored work to India creating over 60,000 jobs. Conservative industry estimates are that British businesses now save upwards of �I billion every year due to offshoring.



Investment - FDI from the UK


40. Since 1993, over 2132 new Indo-British joint ventures have been approved. With a figure of about �3.4 billion, UK is the largest cumulative investor in India. The major sectors of FDI inflows are energy (power, oil & gas), financial and banking services (including insurance), telecommunications, machine tools, computer software industry, electrical equipment, automobiles industry, transport, chemicals and hotels and restaurants.�Some major UK insurance companies commenced operations in 2002.�Leading British oil and gas companies, including British Gas, Shell and Cairn Energy, have announced plans to expand their operations and increase investments.�BP has just announced plans to build a $3bn (�1.7bn) refinery in India with Hindustan Petroleum, at Bathinda with a capacity of 180,000 barrels a day when it comes on stream in 2009, including the establishment of a retail network of service stations. An increasing number of British companies are moving to India for setting up BPO operations.�Recent FDI inflow into India has been modest.�

Year-wise FDI Inflows

41. Out of total Indian investments to Europe, over 60% comes to the UK. According to the UK Department of Trade & Industry (DTI), FDI inflows in recent years between India and the UK have been roughly of the same level. In 2004-05, India was the 8th largest investor in the UK in terms of number of projects. Typically, this is in high value added sectors - eg IT, biotech and pharmaceutical. There were 480 Indian companies having resident presence by 2005, 79% in the ICT sector.

42. London is the favoured base for Indian companies issuing IPOs. More Indian companies have floated on London Stock Exchange (LSE) than in NASDAQ and NYSE combined.�19 Indian companies including Bajaj Auto, Gas Authority of India Limited, Tata Tea, Steel Authority of India, Reliance Energy and Ashok Leyland, etc. are quoted on the LSE.�Several other Indian companies including Gujarat Ambuja Cement, ITC, Mahindra & Mahindra, Ranbaxy Laboratories, Tata Motors, L&T and Reliance Industries, etc. trade depository receipts at LSE.

43. Indian acquisitions in the UK include: Wallis Laboratories by Wockhardt in 1998 ($5 million);�Tetley by TATA Tea in 2000 ($430 million); Apollo Contact Centre by HCL Technologies in 2002; Speedwing by KL Consultants in 2003; CP Pharmaceuticals by Wockhardt in 2003 ($18 million); Dana Spicer Europe by Sundaram Fasteners ($1.5 million); Redrock Ltd. by Dabur India in 2003; Rhodia Organique Fine Ltd. by Nicholas Piramal in 2004 ($14 million); Citisoft by Satyam in 2005 (�39 million); Typhoo Tea, the UK's third-largest tea brand, behind Unilever's PG Tips and Tata Tea's Tetley,�to Apeejay International Tea Limited, in a deal worth �80m concluded in October 2005 and Monoco International Refractories in Doncaster by IFGL Refractories Ltd. in 2005.

44. An India Business Group (IBG) comprising Indian companies in the UK, created by the Indian High Commission in December 1999, holds regular meetings in the High Commission. It brings together senior executives and professionals of Indian companies in the UK, as also leading consultants and solicitors from British firms who advise clients on doing business in India and the UK. The interactive IBG meetings discuss business-related developments, as also problems and suggestions on how to improve business links between India and the UK.�In December 2002, three sectoral core groups were created on ICT; Pharmaceuticals, Biotechnology & Healthcare; and Infrastructure & Finance.



Information Technology


45. The UK and India are partners in the IT sector. The UK is the largest market in Europe for Indian IT services (12% of IT services exports - nearly $1 billion). UK companies realise the benefits of outsourcing to India.�There are about ten thousand Indian IT professionals working in the UK. Indian IT companies in UK are employing over 4000 UK citizens.

46. NASSCOM opened its UK Chapter in September 2003, the first such overseas.�It also has a Memorandum of Understanding with its British counterpart INTELLECT, and also with the Welsh Development Agency, which has been a Platinum Sponsor of NASSCOM�s Annual Conference for many years.�In association with the Financial Times, NASSCOM holds a well-attended annual conference in London on Outsourcing to India.�



MOU on collaboration in the field of hydrocarbons


47. An MoU on hydrocarbons, the purpose of which is to enhance co-operation and understanding in the oil and gas sector and exchange information on good practices in the development of policies on oil and gas exploration, production and field abandonment, was concluded during the recent Summit between the Indian Directorate General of Hydrocarbons and the British Energy Resources and Development Unit of the Department of Trade and Industry.



Biotechnology and Pharmaceuticals


48. Biotechnology has been identified as one of the main areas for enhanced cooperation. Leading Indian biotechnology companies have collaborations with several clients in the UK and Europe.�Astra Zeneca has established an R&D Centre in Bangalore in pharmaceuticals.�GlaxoSmithKline and Ranbaxy have signed an agreement for joint research and development in biotechnology/pharmaceuticals.�Industry delegations from both countries have visited each other regularly.



Healthcare


49. India supplies doctors and nurses in substantial numbers for the UK�s National Health Service.�Indian pharmaceutical companies market their products and have invested in production facilities in the UK. UK is also a source for medical equipment. The Indian Healthcare Federation comprising top Indian private sector healthcare organisations and super-speciality hospitals visited the UK in September 2003 to explore potential partnerships and opportunities.�A significant workshop was held by Chatham House on the collaborative potential with India in clinical testing, drug development and molecular development and basic research (31 Jan-1 Feb 05).�Instances of medical tourism to India from UK have been reported.

50. In the process of globalisation, the UK consumer is also showing keen interest in Complementary & Alternative Medicine. The UK Government's overall objective for �herbal medicines� is that the public should have access to a wide range of safe and high quality herbal remedies, with appropriate information about the product and its use it is therefore working on regulations to strengthen herbal medicine & acupuncture. We have been in contact with the UK authorities on this issue.�



Tourism


51. In 2004, out of 3.36 million international arrivals in India, about half a million were from the UK (15%), a 17% growth over 2003. The High Commission in London alone issued 22% more tourist visas and 29% more business visas in 2004.�During the first half of 2005, this upward trend has continued with a 21% increase over the same period in 2004.�Complaints persist concerning the quality of airports and immigration bottlenecks.



Air Services between India and the UK


52. The UK/India air services market was grossly under-served and this was proving to be a hindrance in promoting tourist and business travel from the UK to India.�India and the UK signed an MOU (Sept 04) increasing the number of services per week from 19 to 40 for each side, to be implemented in three stages from 2004 to end 2005.�A further expansion was agreed upon (April 05), with 77 flights per week for British carriers (56 to Delhi and Mumbai, 14 to Chennai and Bangalore, and 7 to other international airports) and 56 flights per week by Indian carriers to London Heathrow and unlimited numbers to other British destinations.�This additional capacity is expected to ease the situation through greater direct connectivity and lower fares.�

53. In May 2005, Air India launched its first flight linking Amritsar via Birmingham to Toronto in Canada, with the service expected to boost religious tourism around the Golden Temple. Also in May, the British airline bmi began flying between London and Bombay making it the third British airline after British Airways and Virgin. Airlines operating to the UK from India are Jet Airways and Sahara.�During the visit of British Prime Minister Tony Blair to India in September 2005, both sides signed a new bilateral Air Services agreement in order to further enhance co-operation in the civil aviation sector.�



UK Development Assistance to India


54. India has remained the single largest recipient of bilateral development assistance from the UK, with �198 million disbursed in 2003-04. The outlay for 2004-05 was � 250 million.�For India, the UK is the third largest source of ODA, and the largest in terms of grant aid. The UK was the only developed country which did not suspend ODA to India after the nuclear tests of 1998. The Parliamentary Committee on Development Assistance has however suggested in 2004 consideration of the possibility of gradually phasing out aid to India. �




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SCIENCE AND TECHNOLOGY



55. S&T cooperation between India and UK is undertaken under an Inter-Governmental S&T Agreement signed in New Delhi in January, 1996. Sir David King, Chief Scientific Adviser to the British PM and Prof. V.S. Ramamurthy, Secretary, DST are the Co-Chairmen of the Joint Committee which has held four meetings so far, the last one held in New Delhi in March, 2004. To step up the level of activities, both sides have decided to upgrade it to the Indo-UK Joint Science and Innovation Council (JSIC) in June 2005.�The Council will hold its first meeting in April 2006.�

56. Bilateral arrangements also exist between the Indian National Science Academy (INSA) and the Royal Society (RS) and Department of Biotechnology and British Biotechnology Research Council (BBRC). The Council for Scientific & Industrial Research (CSIR) is also a party to a few of the programmes being run in India by the Department for International Development (DFID) of UK. The Director of Ri, Professor Susan Greenfield, is visiting India in Jan 2006.�

57. Thematic Workshops on tuberculosis, e-sciences, industrial mathematics and biomarkers, which have generated Joint R&D proposals (on which a view has to be taken), have been held so far. The Joint Committee has also agreed to organize Joint Workshops in the following areas - stem cell research, Climate Change, alternative fuels, coastal defence and bio�nano technology. A workshop is planned between British and Indian scientists on climate change research at Ahmedabad in September 2005.

58. Space Cooperation: An MOU was signed between ISRO and the British National Space Centre (BNSC) in March 1997 for cooperation in the different areas of space science, technology and applications. The UK also provides components and sub systems for the Indian space programme. The European Space Agency (ESA) and ISRO have had discussions on cooperation in the area of lunar exploration. ESA has recently launched a mission called SMART-1 to the moon and has expressed willingness to share the data with India.




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EDUCATION



59. The British Council Fellowship Programme, Commonwealth Scholarship and British Chevening scholarships provide financial support to Indian students studying in the UK.�Various other scholarships like the Inlaks Foundation, the Rhodes Scholarship etc. are offered for study in various UK educational institutions.

60. The UK estimates the benefits to its economy brought in by the presence of overseas students at �8 billion.�The number of Indian students in UK universities has increased dramatically from 4000 in 1999-2000 to more than 15000 in the year 2004-2005, despite the extremely high tuition fees for overseas students.

61. The 2004 Joint Declaration identified educational linkages as a priority.�India has (Nov 2004) become a strategic partner in the Global Gateway Initiative of the UK Department for Education and Skills for linkages between schools. The British Academy is exploring university-level linkages with the UGC. The Eighth Indo-UK Round Table welcomed a comprehensive study funded by the British Council entitled �The India-UK Strategic Partnership: A review of Academic and Educational Links�. Its main recommendations were to institute financial support for an academic exchange programme at PhD and postdoctoral levels, setting up an India-UK Academic and Educational Network, and expansion of school links between India and the UK. Mr. Bill Rammell, Minister of State for Lifelong Learning, Further and Higher Education, visited India from 31 July � 5 August 05 to explore possibilities for bilateral cooperation in the field of higher education and met Shri Arjun Singh, HRM Minister.

62. A UK-India Education Investment Initiative of �10 million spread over a period of 5 years was announced by Prime Minister Tony Blair during his visit to New Delhi in September 2005.�The UK-India Education Investment Initiative will fund scholarships and short-term academic exchanges and promote student exchanges between universities and schools. The main aim of the initiative is to build on existing academic linkages and to address imbalances in the bilateral relationship. Presently, only 100 British students go to India to pursue their studies.�

63. A Chair had been established on Indian history and culture in the Oxford University by GOI with an endowment of � 1.8 million in July 2002.�It is intended to bridge the worlds of Indology and Modern History, as well as open up Indian studies to wider currents.

64. The issue of student visa fees and related issues has been taken up with the UK Government.�From 1st April 2005, student visa fees have been increased from � 36 to � 85.�For extension of visa in the UK, the fee for application through the post has been increased from �155 to �250 and for the same day service in person, the fee has been increased from �250 to � 500.The removal in the Immigration and Asylum Bill of the right of Appeal for the refusal of student visas and its implications for Indian students needs to be addressed. The grounds for refusal to Indian students, who are a sought after resource by Universities around the world, should be transparent and genuine cases should have some right of appeal.�Even UK universities are critical of Government plans to abolish the right of appeal of students refused visas for the UK.




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CULTURE



65. An agreement on Film Co-production was initialled during PMTB�s visit. The two sides recognized that there is a huge potential for the film industries of the two countries to work together. The Nehru Centre is based in London. Department of Culture has conveyed its support to the exhibition of Chola Bronzes at the Royal Academy of Art (December 2006-February 2007).




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ROUND TABLE



66. The India�UK Round Table, a non-governmental body set up in 2000 to make �out of the box� recommendations on bilateral relations held its 8^th meeting under the Co-Chairmanship of Shri M.H. Ansari and Lord Swaraj Paul near Leeds on February 5-9, 2005.� The next meeting is proposed from March 11-12, 2006 in Goa. Its recommendation that a study be prepared on the vision to be pursued in relations over the coming decade is being implemented by the Oxford Analytica Ltd..�
    

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    INDIAN COMMUNITY IN THE U.K.
    
    

67. The 1.2 million strong Indian community in the UK represents the single largest ethnic segment of the country's population. The contribution of NRIs in the UK has been notable in the economy and the proportions, especially in the fields of industry, medicine, accountancy, law, management, financial services and food. 40% of the pharmaceutical trade of the UK is run by Indians, who are also the mainstay of several other retail trades in the country. The Indian community has also made progress in the media.� That the Indian community has broken away from other South Asian communities in economic performance, self-reliance, integration and educational achievement is a common perception in the U.K.� It also has a significantly lower crime rate. There are 6 MPs of Indian origin and 14 members of the House of Lords.