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India, UK trade ties hit rough weather

A Free Trade Agreement between India and the UK is expected to enhance economic growth and prosperity

A trade agreement between India and the UK has been under intense discussion, but it may not be completed by the Diwali date as originally envisaged.

Kemi Badenoch, the British Trade Secretary, reportedly stated on Thursday, “We’re not far off. We are still working on a settlement, he continued, noting that we are no longer constrained by the Diwali deadline as one change.”

 

The comments come only a few days after Suella Braverman, the British Home Secretary, connected the Free Trade Agreement (FTA) to worries over growing immigration from Indians to the UK, who make up the largest group of visa overstayers.

“Look at immigration in this nation; the majority of overstayers are immigrants from India. Given that I don’t believe Brexit voters intended for an open-borders immigration policy with India, I have reservations about it “The Spectator, a weekly news magazine, has quoted Braverman.

“In order to promote and enable improved cooperation in this area, we even came to an agreement with the Indian government last year. It hasn’t always worked out nicely, “Added she.

Though there has been some attempt to minimise the damage, New Delhi did not take the remarks kindly.

Speaking on behalf of the Ministry of External Affairs (MEA), Arindam Bagchi said, “Wouldn’t want to comment on the statement by UK Home Sec but as far as mobility and consular matters this is a separate issue and there is understanding between both the countries and going forward this will require mutual implementation of these understanding.”

Bagchi said that the two parties intended to reach an agreement by Diwali and added that the “negotiations” have not stopped.

Since this is a trade negotiation, it would be best to leave these issues to be handled by the trade ministers of both countries. “There are ongoing negotiations on the Free trade agreement, and there is interest on both sides to see if we can work towards a deal on FTA that’s beneficial for both countries at the earliest date,” he said.

A trade agreement between the UK and India offers a significant opportunity to strengthen our already robust trade relationship, which is worth $24.3 billion annually and benefits businesses and sectors in both nations.

We continue to be clear that we won’t trade quality for haste and will only sign when we have a deal that serves the UK’s interests, said a spokeswoman for the British High Commission in New Delhi.

It’s interesting to note that on July 21, 2022, India and the UK inked agreements to facilitate professional short-term mobility and expand employment prospects in the domains of education and nursing as part of the trade negotiations.

A British source clarified that “business mobility” is not the same as “immigration” in the midst of the controversy surrounding Suella Braverman’s comments about immigration.

“Business mobility refers to temporary entry for professionals to work in a trade partner country for a set amount of time. This is a distinct issue from what the Home Secretary spoke about, “the source stated.

Adding, “The best and the brightest individuals from India will be encouraged to temporarily work in the UK by any pledges we seek for temporary entry. Any accord would adhere to the points-based immigration system, pending unanimous Cabinet approval.”

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