Sunak needs to make significant progress this autumn or power might ebb quickly away, says the expert
By SUNDER KATWALA, Director of British Future Sep 12, 2023
HEADING to New Delhi for the G20 summit might have felt like a great escape for Rishi Sunak, leaving behind crumbling concrete in classrooms and damning opinion polls for his first visit to India as Prime Minister.
The Sunaks were greeted enthusiastically by the Indian media. A British Prime Minister of Indian origin, paying his first official visit, added human interest to the summit.
Prayers at the spectacular Akshardham Temple displayed the Prime Minister’s Hindu faith more visibly than it has been in Britain. Sunak’s faith is important in his personal life, but peripheral to his politics and policy agenda. He tends to see the lack of attention to his being the first of Britain’s 57 Prime Ministers to practice a minority faith as a positive affirmation of British tolerance.
Sunak declared himself proud to be considered a “son in law” of India and an embodiment of Britain and India’s living links. He has few illusions that his Indian ethnic origin will have any bearing on the hard-headed calculations of the Modi administration.
Indeed, Modi kept world leaders guessing over who was coming to dinner at his house, before dashing Sunak’s hopes by choosing US President Joe Biden instead. Securing the admission of the African Union to the G20 underpinned India’s claim to have emerged as the leader of the global south, perhaps a new non-aligned movement for this century.
Sunak’s trips to India as part of the G20 summit may provide some of the most memorable images of his time in power (Photo by Dan Kitwood/Getty Images)
Sunak got a businesslike twenty-minute bilateral meeting with Modi at the G20 margins, though he may return again next month for the cricket world Cup, especially if trade talks progress well.
Ironically, if Rishi Sunak had never become Prime Minister, we could well have a UK-India trade deal already, albeit not for particularly good reasons. Liz Truss’s focus on the post-Brexit optics of making deals made her willing to sign up to whatever was quickly negotiable, rather than how to negotiate a deal that the UK would want to sign.
Too much British discussion of a UK-India trade deal obsesses over whether immigration might be a sticking point. This is an outdated hangover effect from sharp UK-India clashes over immigration, especially during Theresa May’s time as Home Secretary before 2016 and as Prime Minister afterwards.
But Boris Johnson’s post-Brexit immigration system introduced everything that the Indian government was pushing for and more – not in a UK-India bilateral deal, but as the UK’s more liberal visa policy for everywhere outside Europe. Maybe the UK missed a post-Brexit trade trick with that unilateral liberalisation of non-EU immigration, and could have held back some of those changes as part of its negotiating hand in future trade deals.
Sunak’s bigger problem is over small boats in the English Channel, says Katwala (Photo by Dan Kitwood/Getty Images)
Any trade deal content on immigration now would be technocratic, such as tweaks to the inter-company transfer processes. Indian migration to the UK has never been higher than it is today. Indian nationals had the highest number of student, post-graduate and skilled work visas last year, overtaking China for student visas, and accounting for 46% of skilled work visas too. India contributes significantly to record net migration numbers.
British Future’s latest migration attitudes report, published this week, shows why it is too simplistic to claim that a persistent public demand for lower immigration is ignored by the elites. Rather, politicians and the public are grappling with the dilemmas of control. The 2023 survey was taken shortly after record net migration figures were published, yet the public are evenly split on reducing migration. Just under half (48%) would like overall numbers to fall, compared to two-thirds of the public back in 2016. Those who want reductions are selective and cautions about what to cut.
Sunder Katwala
The post-Brexit points system did deliver a potential control dividend for the government. Numbers are high but the government is often making specific choices about contribution that the public support. Sunak’s bigger problem is over small boats in the Channel. When control matters, the political choice to keep amplifying this issue, on which the government seems to have lost control most spectacularly, is a risky one.
Might the politics of the General Election be slipping beyond Sunak’s control too? He returned from Delhi to a gloomy survey for the Conservative Home website – where eight of ten Conservative members anticipate a Labour-led government after the General Election, with just one in ten expecting a Conservative majority.
Sunak needs to make significant progress this autumn or power might ebb quickly away, long before he faces the voters. Should this ultimately prove to be a two-year caretaker Premiership, Sunak’s trips to India may provide some of the most memorable images of his time in power. His task back in Britain is to persuade his party and the public that he could still deliver a political miracle – and provide the greatest electoral escape of all.
I have just returned from accompanying Sir Kier Starmer to India for the first prime minister delegation to India in 9 years.
I have had the privilege of accompanying every prime minister on their visit to India, starting with Tony Blair in 2005, followed by Gordon Brown, David Cameron and the last was Theresa May in November 2016.
The UK and India signed a free trade agreement after three and a half years of negotiations in July, in Chequers. I was privileged to be present.
Prime Minister Kier Starmer has lead one of the largest prime ministerial business delegations of 125 business leaders from all sectors, including manufacturing and services, business organisations such as the International Chamber of Commerce (ICC) UK, which I Chair, the Confederation of British Industry, which I was president of, and several university leaders, ministers and the press.
The visit has made a huge impact and clearly sent the message that the UK means business with regards to India, it faced the most spectacular welcome I have seen, with thousands of posters of Starmer with Prime Minister Modi lining the streets of Mumbai between the airport and the Taj Mahal Palace Hotel, with such a warm welcome from Mumbai, the state of Maharashtra and India. The bond between the prime ministers was visibly warm and strong.
The bilateral trade between the UK and India currently stands at £43 billion. The UK is the sixth largest economy in the world and India is the 4th, within a few years India will be the 3rd largest economy of the world.
India’s GDP is currently growing at 6.5% per annum. When I spoke at the finance minister of India’s Kautilya Economic Conference, the Finance Minister Nirmala Sitharaman said that India’s target is 8% growth.
India is the fastest growing economy in the world and is yet only the 11th largest trading partner of the UK, it should be one of the largest handful of trading partners. I believe as a result of the FTA and the prime ministerial delegation, we can double bilateral trade in goods and services between the UK and India within 5 years.
Over and above this, we can greatly enhance the investment from the UK to India and from India to the UK. India, which now allows foreign university campuses, and as a result UK universities which are best in the world alongside the US, are now committing to open campuses in India. This is great news for the UK and India.
There is also huge scope to collaborate in technology, including fintech and AI, the introduction of identity cards in India, given India’s expertise in implementing Aadhar cards to over a billion people, and India’s phenomenal digital stack where India stands ready to help the UK.
India is no longer an outsourcing destination. It is a partner, be it in research and development, in innovation, in trade and business, and in security and defence.
The future is extremely bright for these two trusted partners.
(The author is a British Indian businessman, member of the House of Lords, and former Chancellor of the University of Birmingham.)
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Sunak’s Indian escape
Sunak needs to make significant progress this autumn or power might ebb quickly away, says the expert