Mr Johnson is scheduled to arrive in the western Gujarat state — Prime Minister Narendra Modi’s home state — where he is expected to interact with local businessmen and announce new health, science and technology projects. Getty
Mr Johnson is scheduled to arrive in the western Gujarat state — Prime Minister Narendra Modi’s home state — where he is expected to interact with local businessmen and announce new health, science and technology projects. Getty
Mr Johnson is scheduled to arrive in the western Gujarat state — Prime Minister Narendra Modi’s home state — where he is expected to interact with local businessmen and announce new health, science and technology projects. Getty
Mr Johnson is scheduled to arrive in the western Gujarat state — Prime Minister Narendra Modi’s home state — where he is expected to interact with local businessmen and announce new health, science an

Boris Johnson's India visit strengthens New Delhi's position in geopolitics


Taniya Dutta
  • English
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British Prime Minister Boris Johnson’s visit to India during the Ukraine war is aimed at doubling two-way trade, cementing what Mr Johnson has called a “strategic” partnership amid a growing rift between the West and Russia.

His two-day visit on Thursday comes at a time when New Delhi has hedged its geopolitical position, keeping ties with Cold War strategic partner Russia despite growing pressure from the West.

“PM Boris Johnson's visit to New Delhi signifies the importance of India’s role in the dynamically changing global order,” B Rahul Kamath, a research assistant with Delhi-based think tank Observer Research Foundation’s Strategic Studies programme, told The National.

It marks his first visit to the historic partner country after his planned trips to New Delhi last January and later in April were cancelled. This was due to the rising number of Covid-19 cases triggered by the Delta variant.

Mr Johnson is scheduled to arrive in the western Gujarat state — Prime Minister Narendra Modi’s home state — where he is expected to interact with local businessmen and announce new health, science and technology projects.

He will also tour the historic city of Ahmedabad, the ancestral home of around half of the Anglo-Indian population in Britain.

He is then expected to travel to the capital New Delhi on Friday and hold “in-depth talks” with Mr Modi on the UK and India’s strategic defence, diplomatic and economic partnership.

Ukraine war agenda

The prime ministers will discuss the ongoing crisis in Ukraine, which has been under attack from Russia since February 24.

Before his trip, Mr Johnson called India a “highly valued strategic partner for the UK” at a time when “we are facing threats to peace and prosperity from autocratic states,” in an apparent reference to Russia.

“It is vital that democracies and friends stick together,” Mr Johnson tweeted last week.

Mr Johnson is the latest high-ranking dignitary to visit India after a number of Western diplomats visited New Delhi as the South Asian country walks a tightrope of diplomacy over Russia’s invasion of Ukraine.

Last month, UK Foreign Secretary Liz Truss visited New Delhi to boost bilateral cooperation and urge India to shun its dependence on Russia.

India has refused to condemn its Cold War ally Moscow and has repeatedly abstained from West-backed resolutions that censured Russia at the UN.

Moscow is New Delhi’s biggest arms supplier and the two countries have increased energy trade in recent weeks, despite crippling economic sanctions imposed on Russia by the West and Asian allies Japan, Taiwan and South Korea.

The two nations are also working on a financial plan to bypass global dollar trade through their rupee-rouble mechanism.

India's long-standing Russia ties

New Delhi’s actions over Russia have palpably irked its Western allies — mainly the US and the European Union, which have imposed punitive economic sanctions on Moscow.

The UK has been one of the main suppliers of weapons to Kyiv in its fight against Moscow.

But India’s refusal to denounce Moscow has not dented its ties with its Western partners, which experts believe is due to its role in geopolitics, particularly in the Asia-Pacific region that is currently dominated by China.

  • India's Prime Minister Narendra Modi and Russian President Vladimir Putin during their meeting at Hyderabad House in New Delhi. AFP
    India's Prime Minister Narendra Modi and Russian President Vladimir Putin during their meeting at Hyderabad House in New Delhi. AFP
  • Mr Modi escorts Mr Putin to their summit talks at Hyderabad House in New Delhi. AFP
    Mr Modi escorts Mr Putin to their summit talks at Hyderabad House in New Delhi. AFP
  • The two leaders discussed defence and trade relations between India and Russia. AP Photo
    The two leaders discussed defence and trade relations between India and Russia. AP Photo
  • Mr Modi waits to receive the visiting Russian president in New Delhi. AP Photo
    Mr Modi waits to receive the visiting Russian president in New Delhi. AP Photo
  • Mr Putin's visit comes as relations between Russia and the US, also an ally of India, become increasingly strained. AP Photo
    Mr Putin's visit comes as relations between Russia and the US, also an ally of India, become increasingly strained. AP Photo
  • Mr Modi described India's relations with Russia as a 'unique and reliable model'. EPA
    Mr Modi described India's relations with Russia as a 'unique and reliable model'. EPA

Mr Kamath says Mr Johnson’s arrival is a major statement and also a validation of India's positioning in the current geopolitics.

“His visit could catapult the existing India-UK relations, giving them a chance to rediscover and reconfigure their historical relations by focusing on newer areas of cooperation such as the Indo-Pacific region, digital infrastructure, cybersecurity, defence and military cooperation and trade relations,” he said.

Post Brexit trade deal

Experts say Mr Johnson will use the visit to bolster diplomatic, strategic and free trade ties between India and the UK, particularly its post-Brexit strategy.

India is expected to overtake its former coloniser as the world’s fifth-largest economy by 2025.

“My visit to India will deliver on the things that really matter to the people of both our nations — from job creation and economic growth, to energy security and defence,” Mr Johnson said in a statement last week.

India is the second-largest FDI investor in the UK. Its exports to the UK stood at $8.15 billion in 2020-21, while imports aggregated at $4.95 billion.

Since the controversy of Brexit — the UK’s tortuous exit from the EU trading bloc — London has been expanding its markets and signed free-trade agreements, especially with countries in the Asia-Pacific region which are some of the fastest-growing economies.

  • May 7, 2015 - David Cameron wins General Election on the pledge to hold a EU referendum. AFP
    May 7, 2015 - David Cameron wins General Election on the pledge to hold a EU referendum. AFP
  • June 23, 2016 - The UK votes to leave the EU. AFP
    June 23, 2016 - The UK votes to leave the EU. AFP
  • June 24, 2016 - David Cameron resigns in wake of referendum defeat. AFP
    June 24, 2016 - David Cameron resigns in wake of referendum defeat. AFP
  • July 11, 2016 - Theresa May wins Conservative Party leadership election. AFP
    July 11, 2016 - Theresa May wins Conservative Party leadership election. AFP
  • March 29, 2017 - British government invokes Article 50. AFP
    March 29, 2017 - British government invokes Article 50. AFP
  • April 18, 2017 - Theresa May calls snap election. AFP
    April 18, 2017 - Theresa May calls snap election. AFP
  • June 8, 2017 - Theresa May wins general election with reduced majority. AFP
    June 8, 2017 - Theresa May wins general election with reduced majority. AFP
  • June 19, 2017 - Negotiations on withdrawal agreement begin. AFP
    June 19, 2017 - Negotiations on withdrawal agreement begin. AFP
  • November 14, 2018 - Text of withdrawal agreement published. AFP
    November 14, 2018 - Text of withdrawal agreement published. AFP
  • November 25, 2018 - Leaders of EU27 countries approve withdrawal agreement. AFP
    November 25, 2018 - Leaders of EU27 countries approve withdrawal agreement. AFP
  • January 15, 2019 - Theresa May loses parliamentary vote on withdrawal agreement. AFP
    January 15, 2019 - Theresa May loses parliamentary vote on withdrawal agreement. AFP
  • January 16, 2019 - Theresa May survives parliamentary vote of no confidence. AFP
    January 16, 2019 - Theresa May survives parliamentary vote of no confidence. AFP

London has also been negotiating a free-trade agreement with India under a Roadmap 2030 that outlines plans for the bilateral relationship over the next 10 years.

With the FTA, both nations aim to reduce barriers of imports and exports and could boost bilateral trade to over $100 billion by 2030.

Both the countries have been negotiating the proposed trade deal and expect to conclude the agreement by the end of this year.

Possible trade barriers include environmental regulations; non-tariff barriers, including labour regulations; exemption of goods; and protecting geographical indicators on some goods, among other issues.

But “plausible solutions can be organically and sustainably carved out with consistent high-level meetings”, Mr Kamath said.

Lexus LX700h specs

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Power: 464hp at 5,200rpm

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Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

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Price: From Dh590,000

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

MATCH INFO

New Zealand 176-8 (20 ovs)

England 155 (19.5 ovs)

New Zealand win by 21 runs

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SWEET%20TOOTH
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Gulf rugby

Who’s won what so far in 2018/19

Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain

What’s left

UAE Conference

March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers

March 29, final

UAE Premiership

March 22, play-offs: 
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes

March 29, final

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Fixtures (all in UAE time)

Friday

Everton v Burnley 11pm

Saturday

Bournemouth v Tottenham Hotspur 3.30pm

West Ham United v Southampton 6pm

Wolves v Fulham 6pm

Cardiff City v Crystal Palace 8.30pm

Newcastle United v Liverpool 10.45pm

Sunday

Chelsea v Watford 5pm

Huddersfield v Manchester United 5pm

Arsenal v Brighton 7.30pm

Monday

Manchester City v Leicester City 11pm

 

How to help

Call the hotline on 0502955999 or send "thenational" to the following numbers:

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Meydan race card

6pm Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m 

6.35Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m
1,800m 

7.10pm Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m ,400m 

7.45pm Al Rashidiya – Group 2 (TB)  $180,000  (T) 1,800m 

8.20pm Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

8.55pm Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

9.30pm Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m  

Updated: April 20, 2022, 9:46 AM