Hope floats for stalled India-UK trade deal

INTERNATIONAL DESK: Choosing Sunak as PM will give a much-needed boost to UK-India ties and might unblock the stalled bilateral trade deal which was meant to have been signed by Diwali.

Sunak had told TOI he was “strongly committed” to the UK-India FTA to create jobs in both countries and for India to liberalise its consumer financial services industry.

The UK-India trade deal stalled under Liz Truss after disparaging remarks by then home secretary Suella Braverman regarding migration from India to the UK. But UK-India relations could soar under Sunak.

It did not take long for PM Narendra Modi to tweet: “Warmest congratulations @RishiSunak! As you become UK PM, I look forward to working closely together on global issues, and implementing Roadmap 2030. Special Diwali wishes to the ‘living bridge’ of UK Indians, as we transform our historic ties into a modern partnership.”

Sunak previously told TOI in an exclusive interview that he was “strongly committed” to the UK-India FTA and that the City of London could help facilitate India’s growth by helping to get capital to them and also that the UK could facilitate climate finance to fund India’s net zero ambitions. He also told TOI he was keen for the FTA to create jobs in both countries and for India to liberalise its consumer financial services industry.

“There is a rapidly growing consumer financial services industry in India, for example in insurance, and where India is opening up markets, financial services companies like HSBC and others, are able to offer products, services to Indian consumers, often in partnership with Indians firms, and that is good, as it broadens choice for Indian citizens.” he said.

Earlier this year too he said the way he reimagined the UK-India relationship was “a partnership of equals” where the brightest talent from both countries travel back and forth to study and work, one which includes a close trading partnership on goods and services, and where the UK and India freely exchange world-class ideas and innovation.

In a speech at the India Global Forum UK-India awards earlier this year, he said: “The UK does not have a natural right to sit at the table with one of the world’s largest, fastest growing, and most dynamic economies. We must earn it. Right now, there are something like 900 million Indian people under the age of 35. They are smart. They are increasingly well-educated. They are ambitious. And when they look out at the world, we can’t take for granted that they will look to the UK.”

A Department for International Trade spokesperson said: “India is an economic superpower, projected to be to be the world’s third largest economy by 2050. Improving access to this dynamic market will provide huge opportunities for UK businesses, building on a trading relationship currently worth more than £24 billion. That’s why we are negotiating an ambitious Free Trade Agreement that works for both countries. We have already closed the majority of chapters and look forward to the next round of talks shortly.” (The Times of India)