On Thursday, during his first phone call with his newly-elected British counterpart Rishi Sunak, Indian Prime Minister (PM) Narendra Modi pushed for the expedited finalisation of the India-United Kingdom Free Trade Agreement (FTA).
Congratulating Sunak on assuming charge as PM, Modi in a statement that the two leaders had “agreed on the importance of early conclusion of a comprehensive and balanced FTA.”
Modi’s remarks come just days after India criticised British Home Secretary Suella Braverman for her “disrespectful comments” against Indian migrants and said the trade pact was on the “verge of collapse.”
In an interview with The Spectator earlier this month, Braverman expressed concern that a free trade deal with India would allow Indians free movement in the UK and more visa flexibility. She called this a bad deal for the UK, claiming it would enable more Indians to overstay their visas. In fact, she said that “the largest group of people who overstay are Indian migrants.”
Glad to speak to @RishiSunak today. Congratulated him on assuming charge as UK PM. We will work together to further strengthen our Comprehensive Strategic Partnership. We also agreed on the importance of early conclusion of a comprehensive and balanced FTA.
— Narendra Modi (@narendramodi) October 27, 2022
She noted that the deal would add to the overall rise of illegal immigrants in the UK. Braverman said she wanted migration to the UK to fall and claimed this was the reason she campaigned for Brexit. “I have concerns about having an open borders migration policy with India because I don’t think that’s what people voted for with Brexit,” the Home Secretary, who at the time was still working for the Truss administration, told the magazine.
Indian officials were livid about Braverman’s remarks and said the “relationship has taken a step back.” The Indian High Commission in London criticised Braverman, saying it was not appropriate for her to comment on the issue as it was part of negotiations on the FTA.
Furthermore, Modi, who was scheduled to visit London this month, postponed his trip to early November. India and the UK reportedly planned to finalise the FTA during Modi’s visit around Diwali.
Thank you Prime Minister @NarendraModi for your kind words as I get started in my new role.
— Rishi Sunak (@RishiSunak) October 27, 2022
The UK and India share so much. I'm excited about what our two great democracies can achieve as we deepen our security, defence and economic partnership in the months & years ahead. pic.twitter.com/Ly60ezbDPg
In this respect, British officials have been trying hard to contain the damage done by Braverman’s comments. Lawmakers from the Conservative Party have distanced themselves from her remarks and accused the Home Secretary of trying to sabotage the trade pact.
Sunak has also supported the FTA despite reappointing Braverman, who was forced to resign by Truss just last week, as Home Secretary in his new cabinet. In his talk with Modi, the British PM stressed the need to “make good progress in negotiations” to finalise the FTA. He also said they agreed to “bolster our security, defence and economic partnership.”
India-UK Free Trade Agreement has the potential to be a very BIG development. An FTA certificate from the UK -despite its economic crisis- to India can change several things bilaterally as well as globally. First will come economic ripples. Next, will be political aftershocks.
— Kallol Bhattacherjee (@janusmyth) October 27, 2022
“The PM said he was a visual representation of the historic links between the UK and India, and intended to build on this relationship to develop ever closer ties between our two countries,” Sunak’s office said in a statement. “The leaders also agreed to work together as two great democracies to strengthen the developing economies of the world, and looked forward to meeting in person at the G20 in Indonesia,” it noted.
The FTA is expected to benefit the economies of the UK and India by increasing export-import flows and encouraging greater investment. The deal would allow the UK to access the highly profitable Indian market and export transport equipment, medical devices, motor vehicle, wines, and Scotch. Similarly, India would be able to increase exports of textiles, pharmaceuticals, and agricultural products to the UK. India has also been demanding more work and student visas for its citizens as part of the trade deal negotiations.