Rishi Sunak says he is committed to trade deal with India, adds a word of caution

UK PM Rishi Sunak has said that he is committed to a trade deal with India, adding that it is necessary to get the details right. The comments were made by UK PM Rishi Sunak on the sidelines of the G20 summit. "We remain committed to trade deal with India, but we need to get these things right," Sunak said. He added, "There's excitement about India taking over the G20 presidency." The original deadline for the trade deal between India and the UK was Diwali of 2022. 

However, trade representatives of both nations could not agree on the details of the deal and as a result, the free trade agreement was not signed on Diwali 2022. Some reports suggested that the UK Home Secretary's comments on the British Empire played a role in the negotiation going off the tracks. In an interview with British publication Spectator, Suella Braverman had said that she is proud of the British Empire, which was not received kindly in New Delhi. 

Britain wants access to India's market

In a separate interview, Suella Braverman had also claimed that more liberal immigration laws are not good for Britain. More liberal immigration laws for Indian citizens is a key demand of the Indian trade representatives. Braverman said that most people who overstay their visas are people from India, which led to a significant backlash in India.

The trade deal is important for the UK as it is attempting to have market access to nations in Asia, a goal which has become crucial for the UK after Brexit. India is the 2nd largest market in Asia, it is in fact the 2nd largest market in the world, second only to China.

What does India want in return? 

Currently, there are several British goods which face high tariffs, which act as a barrier to British imports. The UK wants India to lower these tariffs, so that British goods have market access in India. As international relations theory suggests, all nations act in their own interests, and India seeks something in return from the UK.

Details of the negotiation between trade representatives is not public but reports suggest that India wants the UK to loosen its immigration laws. In an attempt to pave the way for this trade agreement, Boris Johnson had announced that Indian students in the UK will be at liberty to work in the UK for two years after graduating.

Sunak liberalises work visa restrictions after Boris' student visa liberalisation 

The older student visa law mandated that Indian students do not compete for jobs in the UK market as it would "harm" British students. According to a statement from 10 Downing Street, Rishi Sunak has announced a UK-India Young Professional Scheme, under which 3,000 Indians between the age of 18-30 would be allowed to move to the UK, to work for 2 years.

After Boris Johnson's liberalisation of student visa rules, this is the 2nd decision by the British government to liberalise its visa rules to meet the demand of Indian trade representatives. It is unclear as of now if the number 3,000 and 2 years will be enough for New Delhi. It is expected that Rishi Sunak will be more hard nosed in the negotiations, compared to his predecessor Liz Truss and Boris Johnson.