So, it was time for Rishi Sunak to bid adieu and now all eyes are on the Britain’s Labour Party’s landslide victory with a result of 412 out of 650 under the leadership of Keir Starmer will pave the way for a new chapter in the country’s viewpoint and bilateral relations with New Delhi… which have been on a rocky terrain in the past especially with regards to the Kashmir issue.
To read between the lines of the current scenario and decode the future, one needs to take a look back to review the “past tense”.
In the past, the Labour Party had taken up matters like alleged human rights violations and the Kashmir issue with India more vigorously than any political parties in Britain.
It may be recalled that under the leadership of Jeremy Corbyn in 2019, the Labour Party had even passed an emergency motion on Kashmir at its annual conference in September 2019.
This happened in the wake of the Modi government’s decision to scrap the special status for Jammu and Kashmir and it was also said that “there was a humanitarian crisis in the region and that the Kashmiri people should be given the right of self-determination.”
However, New Delhi did not take it lying down and had responded sternly, terming the move by the Corbyn-led Labour Party as “uninformed and unfounded.”
To make matters unpleasant… Several Labour MPs of Indian origin and others with a large number of voters from the community also faced backlash over the resolution, which was seen and “considered” to be anti-Indian.
Meanwhile, Corbyn was suspended from the Labour Party in 2020, over a row on antisemitism. He, however, contested the elections as an Independent candidate and won from Islington North. He has been representing the constituency way back from 1983.
However, all that has been the past and with Starmer being appointed as Britain’s PM, it is expected that the situation would get better as his manifesto included a commitment to pursue a “new strategic partnership” with India.
“Labour will build and strengthen modern partnerships with allies and regional powers. We will seek a new strategic partnership with India, including a free trade agreement, as well as deepening cooperation in areas like security, education, technology and climate change,” it said.
Also, last month, Labour Party leader and now foreign secretary, David Lammy, had spoken of continuity in the approach towards New Delhi.
Addressing a session at the India Global Forum in London in June, Lammy described India as an economic and technological superpower that is “the future of Asia”. He said: “India contributes so much to British prosperity already. Last year, India was our second-largest foreign direct investment contributor. Over 950 Indian companies are employing over 100,000 people in the UK. But it could be so, so much more as India is only our 12th largest trade partner.”
He even emphasised the need for a “reset and a relaunch” of the India-UK relationship because the Conservative Party had “time and time again over-promised and under-delivered when it comes to India”.
The India-UK Free Trade Agreement (FTA) negotiations, which began in January 2022, aimed to enhance economic ties by providing access to India’s large and growing market, bypassing high tariff barriers. The agreement covers 26 chapters, including goods, services, investments, and intellectual property rights.
Bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23. Starmer’s solid leadership could impact ongoing FTA discussions.
Starmer’s view on FTA with India?
Keir Starmer’s stance on an FTA with India was clearly articulated in Labour’s 2024 election manifesto, which outlines plans for forging a “new strategic partnership with India, including a free trade agreement, as well as deepening cooperation in security, education, technology, and climate change.”
Addressing the India Global Forum (IGF) in 2023, Starmer said his vision for a revamped Labour Party is to pass FTA.
“What my Labour government will seek with India is a relationship based on our shared values of democracy and aspiration. That will seek a free trade agreement (FTA), we share that ambition, but also a new strategic partnership for global security, climate security, economic security,” he said.
The Global Trade Research Initiative (GTRI) founder Ajay Srivastava was hopeful that the Labour Party would recognise the UK’s potential to benefit from an FTA with India, boosting exports due to significant cost advantages.
“For the proof, it can look at the historical precedents, such as the steady improvement in ASEAN, Japanese, and South Korean exports to India following their respective FTAs with India,” he said adding as the Labour Party takes charge, it may approve the FTA with minor adjustments.
He also added that the agreement is nearly finalised, and with a few minor adjustments like curtailing the number of visas for Indian professionals, the Labour Party may likely give its approval.
“This could set the stage for the agreement to be signed as early as October this year,” Srivastava said.
CHALLENGES FOR STARMER US RELATIONS
Starmer has said he will “eal with whoever is the president”, saying the relationship between Britain and the US is “above the individuals”. Starmer is expected to attend a NATO Summit in the U.S. on July 9-11.
WITH EUROPE
Starmer has ruled out rejoining the EU single market or customs union but his party has said it is still possible to remove some trade barriers with the bloc to help smaller companies that have been struggling due to higher costs and documentation.
WITH UKRAINE
Britain is due to give Ukraine 3 billion pounds ($3.8 billion) worth of military aid this year and the country is expected to continue to need support in the years to come. In its party manifesto, Labour said: “With Labour, the UK’s military, financial, diplomatic and political support for Ukraine will remain steadfast.”
GAZA
Starmer had said he wants to recognise a Palestinian state, but added that such a move would need to come at the right time in a peace process and environment.
(The writer is a senior journalist and former Senior Associate Editor, O Heraldo)
