London: Britain's newly-appointed Foreign Secretary David Lammy will kick-start his first visit to India to push for a reset of the bilateral partnership and reinforce the Labour government's commitment to secure a Free Trade Agreement (FTA) that both sides have been negotiating for over two years to boost trade between both countries. The Labour Party had promised a "new strategic partnership" with India, including the FTA and deepening cooperation in critical areas.
According to a statement by the Foreign, Commonwealth and Development Office (FCDO), Lammy is scheduled to hold meetings with his Indian counterpart, External Affairs Minister S Jaishankar along with other ministers and business leaders. Economic, domestic and global security will be at the heart of Lammy's first visit to New Delhi.
"I am travelling to India in my first month as Foreign Secretary because resetting our relationship with the Global South is a key part of how this government will reconnect Britain for our security and prosperity at home,” Lammy said in a pre-visit statement. The Labour Cabinet minister described India as an emerging superpower of the 21st century, the largest country in the world with 1.4 billion people and one of the fastest-growing economies in the world.
“Our Free Trade Agreement negotiations is the floor not the ceiling of our ambitions to unlock our shared potential and deliver growth, from Bengaluru to Birmingham. We have shared interests on the green transition, new technologies, economic security and global security,” he added.
India-UK Free Trade Agreement
The FTA talks began in January 2022, with Diwali 2022 set as the initial deadline by former British Prime Minister Boris Johnson. Under Sunak-led Tory government, no new timelines were set but both sides were looking to get things signed off before a general election year in India and the UK in 2024. However, the trade talks stalled as Sunak abruptly called for elections on July 4, a month after the results of the Lok Sabha elections were announced.
The FTA set a target to significantly boost the GBP 38.1 billion a year bilateral trading partnership. India and the UK have held 13 rounds of talks on the FTA and the 14th round started in January, where they were looking at sealing it by bridging differences on certain contentious issues including mobility of people and import duty concessions on certain items. There are 26 chapters in the agreement, including goods, services, investments, and intellectual property rights.
The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty. On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates, and certain confectionary items.
Lammy previously expressed his determination to “finally get our free trade deal done and move on”. The FCDO said India is seen as an "indispensable partner" for accelerated action on the climate crisis, with the ministerial visit aimed at driving forward the clean energy transition agenda and creating opportunities for British and Indian businesses.
What does Lammy's visit mean for India?
During his talks in Delhi, Lammy is set to discuss partnering on Indian-led global initiatives to build clean power access and climate resilience in the Global South and small island states. He will also visit a technology company to interact with business leaders to highlight how India and the UK are working together on shared ambitions such as “cutting-edge science to encourage innovation, boost trade, and improve the livelihoods of working people in both countries”.
“The Foreign Secretary will underscore the importance of the Living Bridge between the UK and India. It represents the 1.7 million people with Indian heritage that have made their home in the UK and make an exceptional contribution to British life,” an FCDO statement said, adding that the Foreign Secretary will underscore the importance of the 'Living Bridge' between the two countries.
“He will reiterate the extraordinary contribution of British Indians, saying that they enrich the UK’s social and economic landscape and are the epitome of modern Britain,” it said, adding that Lammy wants to harness this force and unlock the potential of a "new" UK-India partnership to deliver prosperity “not just for the people of India and the UK but for the rest of the world”.
After the Labour Party, led by PM Keir Starmer, took charge with a landmark victory on July 4 to end 14 years of Conservative rule, Prime Minister Narendra Modi spoke to his newly-elected British counterpart and extended his wishes, while inviting him for an early India visit. Starmer told PM Modi that he stood ready to conclude a deal that worked for both sides.
(with PTI inputs)
ALSO READ | 'Ready to conclude Free Trade Agreement': New British PM Keir Starmer in first call with PM Modi
