With elections in sight, PM Rishi Sunak pins hopes on India-UK FTA

The ambitious India-UK free trade agreement (FTA) may have proved elusive even in 2023, but it remains the focal point for British Prime Minister Rishi Sunak to try and bolster his electoral pitch for voters increasingly disillusioned by his government over the rising cost of living and illegal migration.

As Sunak, Britain's first Indian-origin Prime Minister, marked the start of this year by setting out his government's top priorities for the year ahead, the deal was not far behind on the agenda.

The two nations will begin a new round of discussions in the New Year after the 13th round was completed this month.

 

The round included sessions both in-person, in London and Delhi, and virtual talks. As with round 12, these negotiations focused on complex issues including goods, services, and investment. The UK and India will continue to negotiate towards a comprehensive and ambitious Free Trade Agreement, the Department for Business and Trade (DBT) said.

There is a strong sense that both sides are keen to get a deal over the line before Prime Ministers Narendra Modi and Sunak must hit their respective campaign trails for a general election year in both countries in 2024.

The end of February 2024 is now seen as the outer time limit for the deal before leaders on both sides get into campaign mode.

The UK and India continue to work towards an ambitious trade deal that works for both countries. We have always been clear we will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and the economy, said a spokesperson for the DBT.

It's the deal, not the date has been the catchphrase of the year to distance the Sunak-led team from his former boss, Boris Johnson, ever since the ex-PM's much-hyped deal by Diwali deadline was missed in October 2022.

The FTA remains a crucial lever to significantly enhance the 36 billion pounds a year bilateral partnership and give Sunak a much-needed post-Brexit fillip to go into election campaign mode.

I remain confident that we can strike a deal which benefits both the UK and India, Sunak told PTI in an exclusive interview ahead of his first prime ministerial visit to India with wife Akshata Murty, as the son-in-law of India, for the G20 Summit.

While a widely anticipated second visit during the World Cup did not pan out for the cricket-loving Sunak, the prospect of a visit early in the New Year seems on the cards.

The importance of the deal was reiterated when it withstood the storm of close UK ally Canada claiming it is "actively pursuing credible allegations" linking Indian government agents to the murder of Khalistani leader Hardeep Singh Nijjar an allegation strongly rejected by India.

The fallout of that Canadian allegation went on to resonate in the UK when pro-Khalistani activists prevented Indian High Commissioner to the UK Vikram Doraiswami from entering a gurdwara in Scotland for a pre-arranged diaspora visit.

The UK government condemned the disruption and has sought to keep a distance from such controversies, including over a controversial BBC documentary India: The Modi Question' condemned by India as biased propaganda, with Sunak telling Parliament he did not agree at all with the characterisation.

Against the backdrop of some diaspora groups attacking the BBC for a perceived anti-India stance, the public broadcaster will be hoping to start afresh with the appointment of its first British Indian chairman in Dr Samir Shah an Aurangabad-born media industry and race relations veteran.

His appointment follows a string of upheavals at the UK taxpayer-funded organisation, including tax raids at its India offices.

The sacking of Suella Braverman as home secretary in November came at the end of a year overshadowed by the Goan-origin MP's many controversies and scathing challenges to her former boss' leadership, likely to continue to play out well into 2024 as Tory infighting intensifies.

The politics was somewhat drowned out in the lead-up to the historic Coronation ceremony of King Charles III on May 6. The 75-year-old British monarch and wife Camilla were formally crowned King and Queen in a Christian ceremony infused with a strong multi-faith element, including a reading by Britain's Hindu Prime Minister Sunak, at Westminster Abbey in London.

Vice-President Jagdeep Dhankhar represented India at the historic occasion.

The new Queen averted a diplomatic row by opting out of the royal tradition of wearing the Koh-i-Noor diamond in her consort's crown. The diamond, claimed by India, has since gone on display at a new exhibition at the Tower of London within a symbol of conquest setting to try and contextualise its turbulent colonial history.

Meanwhile, another heirloom will be making a journey to Maharashtra for a commemorative Shivaji exhibition in 2024 after a pact was signed with the Victoria and Albert (V&A) Museum in London for the loan of Tiger Claws, or waghnakh, believed to have belonged to Chhatrapati Shivaji Maharaj.

It is important today, as we look to appreciate each other's culture, to ensure that cultural exchanges are legal, transparent and rules-based, said External Affairs Minister Jaishankar at a handover ceremony in London for two 8th-century Yogini idols stolen from a temple in India over 40 years ago.

Another symbol of India-UK exchange, the India Club in London with its early roots in the independence movement as a hub for Indian nationalists and a home from home for the diaspora, closed down permanently with a promise to resurrect itself in more affordable premises.

But with new visa crackdowns raising the minimum salary thresholds for Skilled Workers from 26,200 pounds to 38,700 pounds coming into force from early 2024, such restaurants are in for tough times ahead.

Indian industry and student groups have warned of unintended consequences for the British economy a development that will continue to play out in the New Year.