| India rising
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| 1. | We conclude that the UK and India enjoy excellent bilateral relations on a wide range of shared interests. We recommend that the Government sets out in its response to this Report how bilateral relations between the UK and India could be strengthened further in the future. (Paragraph 20)
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| India and the international system
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| 2. | We conclude that, given India's size, economic growth and large contribution to the work of the United Nations, there is a compelling case for granting it a permanent seat on the Security Council, as part of wider reforms of the United Nations. We recommend therefore that the British Government should continue its support for India's bid. We further recommend that the Government should encourage India to work to reassure other G77 members of the benefits of a more efficient United Nations. (Paragraph 30)
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| 3. | We conclude that the weakness of the existing nuclear nonproliferation regime was seriously exposed when non-signatories India and Pakistan carried out nuclear tests in 1998. We welcome the fact that the Indo-US nuclear deal will bring India's civilian facilities further within the broader non-proliferation framework. However, the political significance of the US offering civilian nuclear cooperation to a non-signatory of the NPT has seriously undermined the NPT. We recommend that the Government work to ensure the NPT is updated to take account of the reality of India and Pakistan's possession of nuclear weapons. We further recommend that urgent steps are taken to assist security and confidence-building measures between India and Pakistan. (Paragraph 45)
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| 4. | We welcome the leading role India is playing in developing renewable energy sources. Nevertheless we conclude that India's growing use of non-renewable sources of energy will pose a major threat to global climate security in the future. India is right that the developed world has a responsibility to take the lead in reducing global emissions. However, it must also acknowledge its own likely future impact on climate change and recognise that it is in its own interests to enter the framework that succeeds Kyoto. We recommend that the United Kingdom continue to work together with India to build trust on the climate change agenda, including through joint cooperation on developing renewable sources of energy and climate change impact and adaptation projects. (Paragraph 57)
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| 5. | We conclude that an agreement for India to build a gas pipeline through Pakistan would be likely to have a positive impact on the two countries' relations. However, India should be cautious about becoming too reliant on Iran for energy. We recommend that the Government set out in its response to this Report what representations it has made to India with regard to the proposals for both the Tajikistan-Afghanistan-Pakistan and the Iran-India-Pakistan pipelines. (Paragraph 67)
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| 6. | We conclude that India could gain large benefits from a successful Doha Development Round and we recommend that the Government continues to urge India to take the most constructive approach possible in the newly resumed World Trade Organisation negotiations. (Paragraph 72)
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| 7. | We welcome India's large contribution to the Commonwealth to date and recommend that the Government encourage India to continue to play an important role in the Commonwealth in the future. (Paragraph 77)
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| 8. | We welcome the India-Brazil-South Africa (IBSA) Dialogue Forum as a mechanism for cooperation between rising democratic powers. (Paragraph 82)
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| 9. | We recommend that the Government sets out in its response to this Report the impact of Russia's developing energy relationship with India on the UK. (Paragraph 89)
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| 10. | We recommend that the Government urge its EU partners to work together to build stronger relations between the EU and India. In particular the UK should encourage Member States to agree on a negotiating mandate for a Free Trade Agreement with India. (Paragraph 97)
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| Security in South Asia |
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| 11. | We welcome the recent Confidence-Building Measures between India and Pakistan over the Kashmir question and their cooperation against terrorism. We conclude that the UK should encourage India and Pakistan to make further progress on the peace process, but that the Government should not get directly involved in negotiations nor try to suggest solutions to the question of Kashmir, unless requested to do so by both India and Pakistan. (Paragraph 147)
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| 12. | We recommend that the Government continue to urge the governments of Pakistan and Afghanistan to take steps to improve security on their border. (Paragraph 160)
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| 13. | Good relations between China and India are going to be very important to the international community in the future. We recommend that the Government welcomes areas of cooperation between India and China and encourages even closer relations between the two nations in the future. (Paragraph 168)
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| 14. | We are very concerned about the situation in Sri Lanka. We recommend that the Government urge India and the international community to take a stronger lead in pushing for peace. (Paragraph 176)
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| 15. | We recommend that the Government continues to monitor closely the situation in Bangladesh and that it consider a possible role for Commonwealth mediation or other assistance to help establish a stable democratic process. (Paragraph 189)
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| 16. | We recommend that the Government offer support through its Global Opportunities Fund and assist the Westminster Foundation for Democracy to help develop democratic institutions and political parties in Nepal. (Paragraph 196)
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| 17. | We further recommend that the Government pushes for and supports a strong international observer presence in Nepal for the elections planned for June. (Paragraph 197)
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| 18. | We conclude that there is potential for increasing conflict over access to water in South Asia. We recommend that the Government monitor this situation carefully and that it encourages South Asian nations to use water in a more sustainable way. (Paragraph 203)
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| 19. | We conclude that the South Asian Free Trade Agreement (SAFTA) is unlikely to greatly increase internal trade between countries in the South Asian Association for Regional Cooperation unless further agreements can be reached on trade issues, such as items on 'sensitive lists', which remain to be negotiated. The Government should welcome the steps taken so far to develop an institution that strengthens relations between countries in South Asia and encourage further progress in future. (Paragraph 210)
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| 20. | We welcome the fact that India has joined the Shanghai Cooperation Organisation (SCO) as an observer. We recommend that the Government should urge India to discourage the SCO from becoming an organisation hostile to the West. (Paragraph 215)
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| India's economic growth |
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| 21. | We conclude that the Indian economy is beginning to show signs of the major impact it could have on the world's economy in the future, in particular in the high end knowledge-driven sector. The Government must ensure the UK is able to compete in this new environment. (Paragraph 226)
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| 22. | We recommend that the Government encourage businesses to comment on the quality of advice and information they have received from UKTI. We also recommend that the Government set out in its response to this Report what progress is being made relating to the review of the representation of devolved bodies and Regional Development Agencies overseas, with reference to those in India. (Paragraph 236)
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| 23. | We recommend that alongside WTO and EU India negotiations, the UK Government should continue to call strongly in JETCO and in the Economic and Financial Dialogue for India to remove restrictions to Foreign Direct Investment and to emphasise to India that liberalisation of its markets should have benefits for its economy. The Government must also ensure that businesses are kept informed whenever restrictions on FDI are reduced. (Paragraph 241)
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| 24. | We welcome Indian investment into the UK and the work being done by UKTI to encourage further investment. However, we conclude that the Government needs to do more to continue to attract Indian business into the UK. In particular it should focus on promoting the opportunities for low-cost start-ups and on building links with Indian scientific institutions and journalists. (Paragraph 247)
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| 25. | We conclude that restrictive labour laws are a key barrier to employment generation, and therefore poverty reduction, in India. We recommend that the Government continue dialogue with the Indian government on the benefits of liberalising labour laws. (Paragraph 254)
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| 26. | We recommend that the Government point out to the Indian government that removing restrictions to Foreign Direct Investment in retail could provide opportunities for the agricultural sector to develop. (Paragraph 259)
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| 27. | We recommend that the Government should continue to support improvements to public education in India. (Paragraph 265)
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| 28. | We recommend that the Government encourages the Indian government to take steps to tackle corruption and excessive bureaucracy and that it continues to offer assistance to improve police training. (Paragraph 272)
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| 29. | We recommend that the Government promotes opportunities for investment in Indian infrastructure to UK businesses and that it raises with the Indian government, at national and state level, the need to reform the power sector. (Paragraph 277)
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| The Work of the Foreign and Commonwealth Office in South Asia
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| 30. | We recommend that the Government should make a long-term investment in premises in Mumbai to ensure the United Kingdom is not left behind in a city that is driving India's economic growth. (Paragraph 281)
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| 31. | We welcome the work being done by the FCO's consular services in South Asia. (Paragraph 284)
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| 32. | We conclude that the outsourcing of visa applications in India has made a big improvement to the application process. We recommend that the FCO work with the Department for Education and Skills to ensure that its register of recognised educational institutions is well policed. (Paragraph 286)
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| 33. | We welcome the British Council's decision to target more funding on South Asia. We also conclude that the British Council is right to change its approach in order to make itself more relevant to the new generation of Indians. (Paragraph 293)
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| 34. | The establishment of the UK-India Education and Research Initiative is very important for the UK to maintain a strong position in the higher education market and we recommend that the Government continue to work to strengthen the promotion of bilateral educational links. (Paragraph 294)
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| 35. | We recommend that the Government set out in its response to this Report what representations have been made to remove Indian restrictions on broadcasting news so that BBC World Service can broadcast on the FW wavelength. (Paragraphy 297)
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