10 India-Britain Relations

Professor R.S. Yadav

Structure of the Module

1. Introduction

2. Objectives

3. Bilateral Relations

Beginning of Goodwill
Warming of Ties
Breakdown in Relations
Friendship Continued
New Partnership
Conclusion
Important Questions
Suggested Readings

1. Introduction

India and Britain represent long historical association of nearly 200 years during colonial period. Though India has to fight a long battle for its independence, yet the transfer of power from British Empire to India took place in a cordial manner. Numerous political, economic, educational, administrative and institutional arrangements of British times continued to be followed in free India. Even the political leadership in both countries continues to have faith and good will towards each other. Both continued to maintain interest in each others’ security and economic concerns. Differences over some issue continue to remain due to changed context of regional and global milieu. However, they never brought them at the breakup of relationship. For a clear understanding of the ups and down in their bilateral relations, there is a need to analyze their relationship by understanding the compulsions and foreign policy goals of both of them from time to time.

2. Objectives

Main objective of this module is to evaluate India-Britain relations during the last seven decades. In this context, question of continuity and change in their relationship will be examined in terms of their colonial background and working as independent states. It will also be analyzed how their colonial past has influenced their ties after independence of India? Besides, the impact of changed regional and global milieu will be taken into consideration to evaluate their post world war ties. The impact of India’s non-aligned policy on the militarily aligned Britain will also be assessed. How cold war situation has influenced their relations, will also be examined? Later, why with initial goodwill India and Britain could not remain important for each other will also be evaluated. Post-cold war global situation has completely changed their relations. In this context, how new economic realities have brought both of them closer to each other is also discussed. How formation of EU has influenced their bilateral and milliliter relations are also described in greater detail.

3. Bilateral Relations

India – Britain relations have a chequered history. It started with good beginning and warming up ties. But in between, it also faced some problems during brief intervals. Thus, their relations had ups and downs in their bilateral dealings during cold war era. But during the post cold war years, a new partnership can be noticed in their relations. But one thing has been certain that though their relations faced some differences, yet they have never been conflictual.

3.1 Beginning of Goodwill

Despite colonial background, India and Britain did not have bitterness in their relationships. India continues to adopt number of administrative and political structures of its colonial era. Transfer of power was also not marked by violence, rather Lord Mountbatten, completed his term in a peaceful manner. Numerous compulsions of India’s foreign policy made it to be closer to Britain during this period. Legacies of British system in the areas of education, political system, economic and administrative institutions etc. continued to work smoothly even in free India. India also joined the Commonwealth of Nations after its independence. India considered that membership of Commonwealth is likely to provide opportunity for it to fight against the problem of newly independent states liberated from British Colonial rule. Nehru’s personal relations with Mountbatten since their first meeting in 1946 had very soothing impact on Indo-British relations. Transfer of power to India took place in such amity that it had greatly helped the Indian leaders to convince the people to maintain goodwill with Britain. Thus, Indian leadership believed that world is interdependence and no country could live in isolation with each other.

Simultaneously, despite independence, Britain did not lose interest in India. That is why, it made serious attempts to make India a part of commonwealth nations. Though both followed different foreign policy objectives, yet they share the similarities of views on broader issues of peace and stability in the world. As a result, Britain developed appreciation for India’s policy of non-alignment when both the superpowers were critical of India’s this policy. Britain also appreciated the functioning of parliamentary democracy in India. Despite separation, both continue to have trade and investment in each other’s country. After de-colonization process, most of the countries start shifting its economy from pound sterling to dollars; India’s decision to continue with pound sterling prevented the slide down in British economy.

This, however, do not ruled out the existence of divergences among both the countries. On the issue of cold war, both countries were siding different groups of nations. If India sided with the newly liberated zone of countries of Asia, Africa and Latin America, then Britain was much closer to Western powers like the USA. India was opposed to the formation of military alliances in the world, whereas Britain not only took the initiative to establish the North Atlantic Treaty Organization(NATO) in 1949 but also remained active member of the same throughout the period. On the question of Kashmir, Hyderabad and Goa, Britain continued to hold partisan positions. During Suez crisis, both followed different lines. On the question of racial discrimination in South Africa, both continue to differ with each other.

Despite these differences, economic relations between them continued to remains smooth. In this regard, if Indian goods avail duty free entry in Britain, then British government received sympathetic response in terms of sterling area. India’s decision to withdraw from Sterling area only in a phased manner considerably helped Britain to tide over its own balance of payment crisis. Thus, despite independence from colonial rule, India’s goodwill with Britain continued up to the beginning of Sino-Indian war of 1962, but closer ties between the two were missing in this era.

3.2 Warming of Ties

India and Britain came closer to each other after India-China war of 1962. During this crisis, help extended by Britain to India brought them closer to each other. Britain expressed open sympathy for India during this period. At this, Britain was quotably the first country to supply small arms through civilian chartered planes to India during this crisis. Total arms supply form Britain was worth $ 5.35 million in all, partly as gift and partly on lend-lease basis. It was also reported that British Cabinet also approved the sending of fifteen bomber squadrons to India, but by this time, China already declared unilateral ceasefire. Later, a decision was taken in London, along with the USA, to modernize and re-equip the Indian defense system with an aid worth $ 100 million. Britain also helped it indirectly by means of its diplomatic maneuverings. Similarly, during 1965 Indo-Pakistani war, Britain also tried to protect India’s security concerns against China. By accepting the position of neutrality over Kashmir issue after 1968, it further eased relations between India and Britain. Bangladesh crisis also brought both India and Britain more closely to each other. During war in 1971, Britain’s role had been very judicious and objective. It maintained its neutrality during this crisis and sided neither India nor Pakistan. Britain’s repeated absence on the voting on the ceasefire proposals, both in the Security Council and in the General Assembly, were viewed as sympathetic gestures towards India.

As a result of commonalities of interests on the above issues, Indo-British economic and cultural cooperation also got strengthened. From 1965 onwards, India received loans from Britain on very soft terms. It used to be interest free and are repayable over a period of 25 years, with an initial grace period of seven years. From 1973 onwards, however, all bilateral aid from Britain to India has exclusively been in the form of grants. Besides, British investments in India remained the largest foreign investments in India throughout this era.

This does not mean that there has been lack of irritants between the India-Britain relations. Rather on two important issues, both differed with each other. First issue of conflict between the two has been the role played by Britain during 1965 India-Pakistan war. Though in the beginning, Britain was neutral as far as its role in the conflict among two common-wealth brothers, yet later on, it sided with Pakistan during this crisis. As a result, relations between the two remained somewhat cold till 1970. Second main irritant between them had been the problem of Indian immigrants. The imposition of control over the entry of Commonwealth immigrants into Britain since the early 1960s has led to frequent irritations in India’s relations with Britain. British legislation of 1961 and 1971 regarding migrants has been criticized by the government of India on the basis of racial discrimination. However, despite these irritants in relations between India and Britain, both continued to remain friendly till 1975.

3.3 Breakdown in Relations

With the declaration of emergency in India in June 1975, its relations with outside world got a setback in general and deterioration of relations with England in particular. During this period, response of the Government, people and media, in Britain was very much negative. British government severely criticized Indira Gandhi for her authoritarianism and this led to coldness in its bilateral ties with India.

Criticisms by British public and mass media were also very vocal and vehement than the Government. As a result, ‘Free Jaya Prakash Narayan Committee’ was constituted in Britain to secure the release of large number of political prisoners including Jaya Prakash Narayan. Besides, 400 leading British personalities made an appeal to Indira Gandhi to release all political prisoners held without trial under the emergency. All important English dailies criticized this move of Indira Gandhi’s government. Imposition of press censorship was severely criticized. As a matter of protest most of the accredited journalists of different papers were recalled. BBC also closed down its office in New Delhi. Thus, throughout the emergency period, media was critical of Indira government, and relations became normal only after coming of Joint Government to power in 1977.

3.4 Friendship Continued

With the coming of Janata Party to power in India in 1977 Britian tried to come closer to India. British media, people and political elites well acknowledged this change of regime in India. Besides, some other developments in the regional and global milieu brought the two countries closer to each other. As a result, British Prime Ministers James Callaghan and Mrs Margaret Thatcher paid their visits to India in 1978 and 1981 respectively. This facilitated the development of understanding between the political elites in a very easy manner. These visits were reciprocated by the visits of Indian PM and Presidents. Soviet intervention in Afghanistan in 1979 also brought India and Britain closer to each other because both opposed Soviet entry into Afghanistan due to different reasons. Both were of the view that problem in Afghanistan has to be resolved through political and diplomatic means rather than military means. Their common perceptions brought them close to each of them. Later, problem of terrorism in Punjab in the early 1980s had its serious implications not only for India but also for Britain, because large numbers of Sikhs are settled in that country. This commonality of interest against terrorism/fundamentalism also brought India and Britain closer to each other. India faced serious crisis to its polity with the emergence of terrorism in a very sensitive state but its fight against terrorism was well supported by Britain as well.

As a result, Britain extended liberal aid to India. Even aid and grants were continued on yearly basis in the full decade of 1980s. This was not only limited upto economic activities; rather it was also extended to the social sectors like education and development of human resources. Most of the grants have been extended on interest free basis. Besides, trade between them has been another area of economic activity. Though balance of trade has been adverse towards India, yet efforts were made by Britain to rectify the same so that long term economic cooperation between them could be maintained. To smoothen the trade activities between the two, both signed a double taxation avoidance convention. Numerous memorandums of understandings (MOUs) have been signed to boost economic ties. The agreements were also signed towards technology transfer by Britain in areas of coal, power, railways, ship-building, petro-chemicals and fertilizers. To institutionalize such process, ‘Indo-British Economic Committee (IBEC)’ was setup in January 1976.

Cooperation in defence sector was also enhanced from the early 1980s. This was a period when India started process of diversification of its defence purchase and policy of self-reliant. Visualizing the changed Indian perception on defence production and purchase, Britain entered into defence research cooperation programme with India. For the supply of military equipments to India, Britain signed a MOU for defence research and development. Both of them also hosted ‘Festival of India’ in Britain on 22 March 1982. Purpose of this festival was to expose the British people know about the present India. Britain also shared the joint celebration. Hence, BBC also presented an India week on television and radio to mark the opening of the Festival.

Despite this, there existed differences between the two on some of economic and political issues. On the economic aspects, India continues to suffer in terms of adverse trade with Britain. Politically, both beg to differ on numerous issues like: migration and citizenship; differ in their foreign policy outlooks on numerous global issues; and policy of apartheid in South Africa. However, despite these economic and political differences, both continue to maintain friendship with each other. Not serious such problem was noticed in their relations during this era.

3.5 New Partnership

In the post-cold war era new partnership has been noticed between the two. It is reflected in the form of four fold dimensions – (a) economic cooperation; (b) political interactions; (c) institutional support; and (d) socio cultural linkages.

a) Economic Cooperation – This is reflected through the launch of Indo-British Partnership Initiative(IBPI) in January 1993. Backed by the two governments, the initiative has become an ongoing partnership, and is now called Indo-British Partnership (IBP). The confederation of Indian Industry (CII) and UK’s department of Trade and Industry manage IBP’s secretariat.

IBP has so far concentrated on the sectors of power, telecommunications, industrial components, agriculture and food processing. Besides, numerous new initiatives have been taken to boost economic cooperation during the last two decades. In April 1995, Indo-British Science and Technology Initiative, an umbrella agreement for cooperation in this field, was signed. In

November 1999, both governments launched a bilateral initiative to connect UK’s Universities and institutions with the Information and Technology (IT) sector in India. As a result, massive inflow of Indian IT professionals has been in the UK during last one decade. Further in 2000, under the modernized work permit service, it has been made easy to recruit IT personnel from abroad by the UK industry. Under the Global Enterprises Initiative launched in January 2000, Britain seeks to bring together small and medium enterprises from UK and India and set up 200 men partnerships. Moreover, In January 2002, a “Science Festival”, was held in New Delhi. As a result, trade and foreign investment between them increased tremendously. As far as bilateral trade is concerned, Britain is India’s second largest trading partner worldwide and India’s largest trading partner within the European Union. India mainly exports manufactured goods (84.4%) and agricultural and allied products (13.7%) to Britain. Other items for exports are readymade garments, textile, engineering goods, leather garments/articles, footwear, gold jewellery, organic chemicals, marine products, rice, medicinal herbs, sports goods, pharmaceuticals, tea, granite and jute. India’s main imports from Britain consist of capital goods(31%), export related items (30%), manufacturing goods (21%) and raw materials and intermediaries (14%). Though trade between them is not much problematic, yet it is very much below the potential between the two countries.

Since the end of cold war, Britain is emerging as a major foreign direct investor in India. Its FDI in India is not only increasing endlessly but also it is the third largest investor after the investments from the USA and Mauritius. Besides, it is the largest investor among the European Union countries. Though Britain is emerging as largest cumulative investor in India with a cumulative investment of $ 3 million and over 800 joint ventures, yet the levels of investment remain well below potential and have of late slowed down. Besides, British investment reflects a pronounced bias in favour of sectors such as oil and gas, power, telecom, chemicals and sugar and not in some more basic infrastructure oriented sectors much needed by India.

(b) Political Interactions: After 1991, political interactions in the form of high-level visits by the leaders of both countries increased to a great extent. British Prime Minister paid a high level visit to India in January 1993 to start the Indo-British Partnership Initiative. Later in 1997, Queen Elizabeth II and Prince Philip visited India. James Collaghan also paid his goodwill visit to India in 1998. Thus, the pace of exchange of visits by the political leaders of both the countries increased multifold in the 21st century. Later, Prime Minister Tony Blair visited India twice in October 2001 and January 2002 and Prime Minister Vajpayee and Deputy Prime Minister and Home Minister L.K. Adwani visited Britain in November 2001 and June 2003 respectively. Political leaders of both countries reiterated their commitment to combat international terrorism through mutual cooperation. Both emphasized to develop cooperation in the areas of development, poverty alleviation, education and science and technology. Britain also assured its support to India’s case for the permanent seat in the UN Security Council.

(c) Institutional Support: The relations between India and Britain are not limited to some personalities, rather they are rooted in institutional support developed between the two countries.

The establishment of “Labour Friends of India Group(LFIG) “Liberal Friends of India Parliamentary Group” (LFINPG) (2000); and “Conservative Parliamentary Friends of India Group”(CPFIN) (2001) in all the three major parties of Britain show the cross party political support for Indo-British Cooperation.

Not only at Government to Government level but also at Track II level diplomacy, both are moving in a positive direction. At Track II level, ‘India-UK Round Table’ was launched in New Delhi in April 2000. Thus, certain institutional efforts are being made to boost cooperation between the two countries.

(d) Development of Socio-Cultural Linkages: To establish long term ties to these relations, understanding about each other’s cultural concern is a must. In this context, both the countries are making serious efforts during the last two decades.

In India, British Council is promoting academic and cultural activities. In London, the Nehru Centre, funded by ICCR, has been successfully doing the similar job since its inception in July 1992. It is working as a forum for dialogue at the cultural and academics levels in London. India has also organized its “Festival of India” in Britain in 1995. For the development of more profound knowledge about India “India Chair” is established in Oxford University. Under this chair a Professorship in Indian History and Culture has been set up at the Faculty of Oriental Studies in Oxford University.

Indian Community in Britain is also doing a yeoman service in this context. Indian community, estimated around 1.3 million, accounts for the single largest segment (1.5%) of ethnic population in England. Numbers of MPs are elected in British and EU’s parliament from people of Indian Origin. Most of the Chambers of Commerce and Industry in the UK incorporate Asian Unit/Chapters which represents Indians.

7. Conclusion

From the above analysis it can be concluded that Indo-British relations faced number of ups and downs since 1947. Despite being colonial masters and colony both continue to maintain good will between them due to the compulsions of global and bilateral nature in the early years. China’s war on India was a turning point for Britain to support India against any communist onslaught. This warmth in their ties continued till the imposition of emergency rule in India. After a brief interregnum of less than two years, both continue to improve their relations inspite of some minor differences. In the post-cold war era, Britain tried hard to be a partner in India’s economic development. Though both had willingness to endow cooperation in terms of trade, FDI, joint ventures etc, yet their relations could not acquire the status according to their potentials. Though there is smooth sailing in their relationship at present, yet further will be dependent upon how they meet out each other’s concerns.

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Suggested Readings

a) Books/Articles

A. Appadorai and N.s. Rajan, India’s Foreign Policy and Relations, New Delhi,1985.
B. Vivekanandan, “India and Britain”, International Studies, Vol.17, nos. 3-4, JulyDecember 1978.
Herald Macmillan, At the End of the Day, 1961-1063, London, 1963.
Harold Wilson, The Labour Government, 1964-1970 : A Personal Record, London,1971.
M.P. Bezboruah, “Banishing the lingering ghost of the Empire,” Times of India, 16November 1993(Special Indo-British Partnership Initiative suppliment).
Govt. of India, Ministry of Commerce and Industry, SIA Newsletter, XI(10), February 2002.