UK Recession: Ripple Effects Hit India? Experts Weigh In:
According to data published by the Office for National Statistics, the UK finds itself in recession at the end of 2023. The UK’s gross domestic product (GDP) fell by 0.3% in the final quarter of 2023, following a 0.1% decline in the third quarter. Recession is defined as a decline in GDP over several quarters, indicating a stagnation in the economy.
Understanding economic downturn:
The definition of economic downturn focuses on the three-month decline in GDP while taking into account various economic measures. A recession causes a long-term decline in the economy, affecting many economic indicators and measures such as productivity, employment, and real income. These can take many forms, including a cycle of boom and bust, a balance sheet caused by excessive debt, a depression caused by a decline in GDP, or a stock market shock caused by international events.
Impacts on India-UK relations:
Britain’s recent economic crisis has affected its international partners, including India. India’s cooperation with the UK is important for both countries. For the UK, India is an important partner in the Indo-Pacific region and offers opportunities for trade and defense cooperation, as evidenced by defense and international security cooperation established in 2015. – The Brexit vision of “global Britain” that aims to expand its influence beyond Europe. Improving bilateral relations with India could improve the UK’s global position.
OFFICIAL: 🇬🇧 UK falls into recession. pic.twitter.com/8730HPgllr
— Radar🚨 (@RadarHits) February 15, 2024
From India’s perspective, the UK’s presence in the Indo-Pacific has an impact on the regional space with the support of military bases in strategic regions. Additionally, the UK’s US$70 million investment in renewable energy development has given India the opportunity to achieve sustainable development goals, especially in solar. India was also seeking easier trade for British fisheries, chemicals and agricultural products, as well as tariff concessions on labour-intensive exports.
In summary, as the UK grapples with economic difficulties, its partnership with India has become increasingly important. Economic and social development can benefit both countries and promote trade, investment and regional cooperation in the Indo-Pacific region and beyond.
