The United Kingdom and India Essay Example for Free

The United Kingdom and India Essay The purpose of this paper is to understand the benefits of the trade relationship between the United Kingdom and India particularly in the small and medium enterprises sector of each country. Introduction The relationship between the United Kingdom and India can be traced from centuries ago. The British Empire once colonized India and the British have already seen so many unique attributes of India in terms of products and resources that they began taking it to their shores. The Indian and British economy can be both very influential in developing peace and justice in the world economy. Thus it can only be done if both countries will begin seizing the opportunities today. India being the largest democracy is not only a very good potential market, but in the long run, this country is bound to contribute a lot of things to the progress of the world. Prime Minister Gordon Brown has said in (2007) India is one of the engines of world growth. I believe Britain must be a full participant and indeed your partner of choice. Research Question How does the current trade relationship between U. K. and India affect each other’s domestic economic growth? Objectives: †¢ To determine whether the current trade relationship of the United Kingdom and India is strong and beneficial (advantageous) or its opposite †¢ To understand whether to what extent each country influences the other in terms of monetary and non monetary investments †¢ To identify which factors contribute to the success (or failure) of the existing trade relationship Hypotheses †¢ India and the United Kingdom’s trade relationship is a strong and beneficial one †¢ The existing trade relationship between U. K. and India provides India with beneficial technology transfer and knowledge building which improves small and medium size entrepreneurial growth †¢ The existing strong relationship between U. K. and India paved the way for India to invest favorably in the U. K. Methodology This paper will particularly rely on secondary sources taken from the studies of experts in the said field, and primary data coming from government agencies that investigate and study this topic in the United Kingdom and India. Literature Review Gareth Thomas MP, Minister for Trade, Investment and Consumer Affairs in April 2008 further added that, â€Å"The UK can help India achieve this ambitious target. We are a natural ally of India in encouraging Europe to open up in areas of interests. As allies we need to support the global economy and restore confidence. The alternative risks nations succumbing to the growing tide of protectionism. The UK-India partnership – Governments and business – must continue to be at the forefront of those making the case for increased openness. I believe that strengthening still further UK-India trade will help India’s development, will help India to lift more of it’s people out of poverty and at the same time be good too for British business, British jobs and our economy. † This statement goes to show that such relationship equally benefits both countries, because more and more Indian companies are penetrating UK for investments thus providing the UK with more job opportunities, especially on the Northern Ireland part. Now, in the 21st century, the trade relations of both country has gone stronger. The United Kingdom’s strong trading relationships with India provides for advantages specifically in the area of business in the U. K. ’s domestic economy. According to Prime Minister Brown (2008), â€Å"The UK will invest another ? 825 million for development in India over the next three years. † Brown announced the funding during his India visit. UK’s aid in strengthening the education sector of India, will also prove to be beneficial for both countries in the long run. This is so because, there will be an increase in the talent pool which can help Indian and British companies. The UK investment is not merely for trade purposes, but this time a big chunk of the investment will go to humanitarian purposes and education wherein up to ? 500 million is expected be spent on health and education. The said funds will give 300,000 more teachers and another 300,000 classrooms ensuring that in total by 2011, 4 million more children half of them girls – will be able to go to school. This then, will definitely promote more equality in education. Prime Minister Brown in (2008) further added that, Over the last few years, India has made great progress in tackling poverty and sustaining economic development. But some grave challenges remain. The UK is keen to play its part and work in partnership with India to fight poverty. That is why I am pleased to announce this substantial package of support to help make a better future for India’s poorest. This is a very important statement because it reflects how committed the UK is in helping the Indian society. Definitely, a country can only achieve high quality of growth and very good business climate if it is able to sustain its own demands for change. UK is very particular with â€Å"just change†, or an equitable change. It cannot be that India continues to contribute to the most number of billionaires in the world and yet a lot of its citizens are still dying of hunger, unemployment, poverty and other diseases. The UK’s Secretary of State for International Development, Douglas Alexander, said: Without India getting on track, the world will fail to meet the Millennium Development Goals. That is why the UK contribution which accounts for 1/3 of all aid to India is welcomed. Past UK support has helped to raise primary school enrolment rates to 94 per cent and provided water and sanitation for 10 million slum dwellers. The ? 825m contribution will continue to benefit Indias poorest by improving health (including under nutrition) and education for all. Though parts of India are booming, the levels of child malnutrition in India are nearly twice as high as the average for all of sub Saharan Africa. India is home to one third of the world’s poor. Up to 400 million people live on under a dollar a day. UK’s contribution to India transcends business, it has to be also about development. UK believes that India is a huge talent pool, and yet it can only be sustained if education will not be limited to few. If India wants to be one of the largest economies, then it has to produce more leaders by means of education- and this is where UK is very helpful with.