Despite tough asks, trade ties bring UK-India closer

India and Britain have broadly agreed or a ‘massive push’ towards a post-Brexit trade and a free trade agreement is expected to be arrived at by Diwali this year in late October.

United Kingdom Prime Minister Boris Johnson on a visit to India said the deal could take UK-India trade to a new level. It is still early and details of the deal are not available and as described there would be ‘tough asks’ from both sides, but a deal such as this will benefit both countries in the post-Brexit scenario where Britain needs to find new trade partners and India that had used Britain as a gateway to the European Union finding new entry points to the continent. 

It was a two-day visit where trade and deepening these relations was the focus, with politics playing a secondary role. The British Prime Minister made the right statements describing India as ‘an incredible rising power in Asia’ and then touching upon India’s almost hands off policy on the Russia-Ukraine conflict, which he said the India’s longstanding relationship with Russia was understood and respected, and that India’s Prime Minister Narendra Modi had intervened with Russia President Vladimir Putin several times since the conflict. This is a lot different from the disappointment that the United States has registered over India’s stand on the Russia-Ukraine war, or the efforts of the West to get India to drop its neutrality and actively condemn Russia for the invasion of Ukraine. India Prime Minister Narendra Modi said that the need for a ceasefire in Ukraine and the resolution of conflicts through dialogue and diplomacy was stressed and that the two leaders reiterated the ‘importance of territorial integrity and sovereignty of all nations’. 

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It was obvious that for the two countries, strengthening trade ties was the priority in these talks and that coming to an accord on a future agreement the focus of the UK Prime Minister’s short visit. The two countries not only arrived at a general consensus on a free trade agreement, but also held talks on partnerships in the defence sector with the UK seeking to increase its footprint in defence production in India. India has largely been buying defence equipment from Russia, but Britain could get a bigger portion of India’s defence purchases, as the former also announced it would be streamlining licensing rule for exporting military hardware to India. Besides this, Britain and India will also cooperate on clean and renewable energy. 

Johnson showed willingness to adapt to India’s needs and went a step ahead to meet other demands, especially on more relaxed migration rules for Indians. Stating that there were skills in India that could benefit the United Kingdom, especially in the Information Technology sector, the British Prime Minister said he could be flexible on the rules, but that migration would have to be controlled. In other words, while Indians with skills and talent will be welcome, it may be a little more difficult for those who are not able to show such talent to get an easy entry into Britain. 

A significant aspect of the visit of United Kingdom Prime Minister Boris Johnson is that India is currently celebrating its 75th year of independence – Azadi ki Amrit Mahotsav – that commemorates the departure of Britain from India. Also, Johnson, already embroiled in the partygate scandal at home, courted controversy when he jumped atop a bulldozer for a photo opportunity of the same company that was utilised to demolish structures in some riot-hit areas of New Delhi. It sparked outrage in India. The company is British owned, and Johnson was criticised for being insensitive. Yet, as Johnson returns to the United Kingdom, the visit will be seen as successful, as trade ties that matter for both the economies have come close to reaching an agreement on them. 

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