In an early general election, British citizens head to polls to vote on July 4, 2024. On July 5, 2024, the results of the United Kingdom (UK) general elections 2024 were declared. The Labour Party, led by Keir Starmer, won the elections by gaining 410 seats in the 650-seat House of Commons, defeating the governing Conservative Party led by Rishi Sunak, in a landslide victory. With the largest mandate since the regime of Tony Blair, the Labour Party ended a 14-year, four-term tenure which saw five Conservative Prime Ministers from David Cameron to Rishi Sunak. Former prosecutor and human rights lawyer, Keir Starmer, the leader of the Labour Party, is now the Prime Minister of UK.
Historical Background of the India-UK Relations
India and UK have a long historical association of nearly 200 years from the colonial period. Though India has to fight a long battle for its independence, yet the transfer of power from British Empire to India took place in a cordial manner. In free India, several British-era political, economic, educational, administrative, and institutional arrangements are still in place.
After independence, despite having a complex history, India-Britain relations largely began with a positive start and gradually strengthened over time; though also encountering occasional tussles.
Positive start India and Britain maintained a harmonious relationship after India’s independence. The transfer of power was also not marked by violence, as Lord Mountbatten completed his term peacefully. During this period, India’s foreign policy compelled it to become closer to Britain due to numerous constraints. Simultaneously, despite independence, Britain did not lose interest in India. That is why, it made serious attempts to make India a part of commonwealth nations.
Tussle over several issues The existence of divergences among both countries did not rule out. Both countries were forming alliances with different nations during the Cold War. As India aligned with Asia, Africa, and Latin America’s newly liberated territories, Britain grew closer to Western powers like the United States. On the issue of Kashmir, Hyderabad, and Goa, Britain maintained partisan viewpoints. During the Suez crisis, both sides exhibited divergent views. Similarly, both sides remain divided on the issue of racial discrimination in South Africa.
Warming of ties After the 1962 India-China war, India and Britain grew closer due to Britain’s assistance and open sympathy during the crisis, fostering a stronger relationship between the two nations. Similarly, during the 1965 Indo-Pakistani War, Britain aimed to safeguard India’s security concerns against China. Bangladesh crisis also brought both India and Britain closer to each other in 1971.
Breakdown in relations In June 1975, India declared an emergency, causing a significant setback in its international relations, particularly with UK. During this period, the government, people, and media in Britain exhibited a highly negative response. During the emergency period, media criticism of the Indira Gandhi government increased, and normal relations only improved after the Joint Government came to power in 1977.
Friendship continued When the Janata Party came to power in India in 1977, Britain attempted to strengthen ties with the country. British Prime Ministers James Callaghan and Mrs Margaret Thatcher conducted visits to India in 1978 and 1981, respectively. These visits were reciprocated by the visits of Indian PM and Presidents. The 1979 Soviet intervention in Afghanistan also brought India and Britain closer due to their opposition to the Soviet presence in Afghanistan. During this period, numerous memorandums of understanding (MOUs) have been signed to boost economic ties between India and Britain. Agreements were also signed for technology transfer in coal, power, railways, shipbuilding, petro-chemicals, and fertilizers sectors. In January 1976, the ‘Indo-British Economic Committee (IBEC)’ was established to institutionalise this process. The early 1980s saw an increase in the cooperation in the defence sector.
New partnership In the post-cold war era, a new partnership emerged between the two nations. It is reflected in the form of four-fold dimensions—
Economic cooperation The launch of the Indo-British Partnership Initiative (IBPI) in January 1993 reflects the efforts to promote bilateral relations. Backed by the two governments, the initiative has become an ongoing partnership, and is now called Indo-British Partnership (IBP). The IBP is managed by the Confederation of Indian Industry (CII) and the UK’s Department of Trade and Industry. In November 1999, both UK and Indian governments initiated a bilateral initiative to link UK universities and institutions with the Indian IT sector.
Political interactions After 1991, political interactions between British and Indian leaders increased significantly. British Prime Minister Tony Blair visited India in 1993 to initiate the Indo-British Partnership Initiative. Queen Elizabeth II and Prince Philip also visited India in 1997. James Collaghan’s visit to India in 1998 further increased the pace of exchanges. Prime Ministers Vajpayee and Home Minister L.K. Adwani visited Britain in 2001 and 2003, respectively. Political leaders of both countries have pledged to combat international terrorism through mutual cooperation in development, poverty alleviation, education, and science and technology. Britain also pledged its support for India’s bid for the permanent seat in the UN Security Council.
Institutional support The formation of the Labour Friends of India Group (1999), Liberal Friends of India Parliamentary Group (2000), and Conservative Parliamentary Friends of India Group (2001) in all major British parties demonstrates cross-party political support for Indo-British Cooperation.
Sociocultural linkages The British Council is actively promoting academic and cultural activities in India. Similarly, the Nehru Centre in London, funded by ICCR, has been successfully performing similar tasks since its inception in July 1992. India has also organised its “Festival of India” in Britain in 1995. The Oxford University has established the “India Chair” to promote deeper understanding of India.
2030 roadmap for India-UK future relations In May 2021, India’s Prime Minister Narendra Modi and UK Prime Minister Boris Johnson signed a ‘2030 roadmap for India-UK future relations’ to guide cooperation for ten years. The framework encompassed over 1,000 lines of activity across five pillars. They are (i) connecting both countries and people, (ii) trade and prosperity, (iii) defence and security, (iv) climate, and (v) health. In April 2022, Boris Johnson and Narendra Modi held talks in India to further strengthen the 2030 roadmap in defence, diplomacy, and trade. Following the meeting, a new joint statement was released. The statement noted that both prime ministers agreed to “elevate India-UK relations to a comprehensive strategic partnership”. This would be underpinned by a “shared commitment to democracy, fundamental freedoms, multilateralism and a rules-based international order”. It also outlined their shared vision for an “open, free, inclusive and rules-based Indo-Pacific”, where countries were free from economic, military, and political coercion.
Present Scenario
As for the Indian diaspora in the UK, the results of the 2021 census have revealed that 5.5 million people, or 9.3 per cent population, belonged to Asian ethnic groups, with over three per cent of those identified with the Indian ethnic group. The British Indian community which is about 1.8 million, contributes over six per cent to the British economy. Initially, Labour party had enjoyed a stronger support base among British Indians, however, former Labour leader, Jeremy Corbyn had an anti-Indian stance, which led the Indian community lean towards the Conservatives. He was antagonistic towards India with his repeated references to Kashmir to appeal to Britain’s Muslim community that compromised a significant vote bank to the party.
Keir Starmer, as compared to the party’s former leadership under Jeremy Corbyn, has taken a more pro-Indian stance. Ahead of Rishi Sunak’s suggestion for an early parliamentary election, Starmer had been trying to win the votes of British Indians. His goal has been to mend and rebuild the strained relations that have been existing between his Labour Party and the Indian diaspora. He further acknowledged the past mistakes of his party in handling relations with India, especially over its perceived anti-India stance on Kashmir issue by supporting Pakistan. This had alienated many British Indian votes in the 2019 General Elections in the UK.
In the 2024 UK general elections, the Labour Party had fielded many Indian-origin British candidates. In fact, in 2023, at the India Global Forum (IGF), Starmer had set the tone for his party’s India-UK outlook. He stated that it is a changed Labour Party and it would seek a relationship based on shared values of democracy and aspiration with India. Furthermore, Labour Party’s election manifesto included an explicit reference of a free trade agreement (FTA) and vowed to establish a ‘new strategic partnership’ with India. The manifesto further emphasised on deepening cooperation with India in areas including security, technology, climate change, and education, if voted to power.
While on his election campaign, Starmer further visited the Swaminarayan Temple in Kingsbury. He has been making consistent efforts to convince Hindus living in Britain that there is no room for Hinduphobia in Britain. During the past few years, he has repeatedly reiterated this message during Holi and Diwali celebrations.
Impact on UK-India Relations
The UK and India have sought to strengthen their bi-lateral ties. The impact of 2024 elections on several aspect and policies are discussed below:
India-UK free trade agreement Former UK Prime Minister, Boris Johnson, and India’s Prime Minister, Narendra Modi, reached an agreement in May 2021 on a ‘2030 roadmap for India-UK future relations’ to steer cooperation for the next 10 years. The framework included cooperation on areas of education, research, trade, defence, climate, and health. The agreement was upgraded to an enhanced trade partnership through FTA. In order to strengthen their economic connections, India and the UK began talks for an FTA, in January 2022. In March 2023, it further included areas such as security, defence development and foreign policy. There have been 14 rounds of discussions so far, yet a consensus has not been reached till now. The International Agreements Committee of the House of Lords released a report in July 2022 that examined the government’s negotiation objectives. According to the committee’s findings, there were grave concerns despite the possibility for the UK to benefit economically from a trade agreement with India. It further cautioned about India’s past of relatively thin FTAs, protectionist policies and distinct regulatory frameworks, hence, highlighting important obstacles to conducting business with India.
Now, negotiations for the India-UK FTA hold bipartisan support and are expected to resume under the Labour government. The India-UK FTA might face some delay as the Labour Party would want some changes. Certain industries would benefit from this delay, while others would suffer some loss too. For the wine industry, it would be beneficial as it would bring in cheaper alcohol. However, India’s IT, electrical, and fashion industries would face a loss as FTA would ensure greater market access for them. The FTA agreement has 26 chapters including goods, services, investments and intellectual property rights. The bilateral trade between India and the UK increased to US$ 21.34 billion in 2023–24 from US$ 20.36 billion in 2022–23. The FTA is aiming to double the bilateral trade by 2030. This would benefit India’s textiles, apparel, and gems sector.
However, there are still issues that need to be resolved, such as India’s high tariffs. These may be as high as 100–150 per cent on automobiles and scotch whiskies. Britain has been batting for more access to the Indian market for its services sector, which constitutes 80 per cent of the British economy.
On the other hand, India has been wanting more mobility for its highly qualified professionals, which is a politically sensitive matter for the Conservatives who supported Brexit on the grounds that they opposed immigration. Perhaps, a Labour government would be in a better position to compromise on matters pertaining to mobility.
Indo-Pacific strategic engagement The British have made a U-turn towards the Indian Ocean as a result of the changing strategic environment in the Indo-Pacific. The UK’s ‘Indo-Pacific tilt’ and emphasis on collaboration with ‘like-minded’ allies like India to build a rules-based order are documented in the Integrated Review Refresh (IR Refresh 2023) agenda. As a result, India and the UK are now more strategically involved in the Indo-Pacific region. India and UK are increasing their maritime presence through joint military exercises, improved naval interoperability, and cooperation in counterterrorism, maritime domain awareness, and humanitarian aid and disaster relief (HADR) initiatives.
Moreover, IR Refresh’s references to China as ‘an epoch-defining and systemic challenge’ have helped to moderate India-UK differences, even though the strategy falls short of labelling China a threat. However, concerns over British capability and resources remain despite ambitions to become the most active European nation in the Indo-Pacific and boost defence spending to 2.5 per cent of GDP by 2030. It is, however, uncertain whether Labour Party would continue the tilt initiated by the Conservative Party. Further, with reduced US involvement in Europe, Britain may need to concentrate on its responsibility as a Euro-Atlantic security provider. This would make working together with allies, like India, even more important for the stability of the Indo-Pacific region.
Security and defence The security and defence pillar of the cooperation gained impetus during Minister Rajnath Singh’s visit to the UK in January 2024—the first one in 22 years. However, in the last 10 years, only three per cent of India’s defence purchases have come from the UK. This highlights the scope for doing more, especially to support India’s defence manufacturing industry by exchanging cutting-edge technologies and easing export licensing regulations to help India become less reliant on Russian weaponry.
Visa rules For the past few years, India and the UK have been in negotiations to relax visa requirements because many Indians travel there for work in the IT and finance sectors. In addition to relaxing requirements for transferring employment within the UK, India has been seeking modifications to the UK’s India Young Professionals Scheme. The talks have been going in the positive direction so far; however, it still remains unclear with the Labour party coming into power.
Carbon tax Unlike UK exports to India, Indian exports may still be subject to high carbon taxes even if FTA lowers or eliminates tariffs. The UK has supported enforcing the carbon fee proposed by the European Union (EU). The Labour Party has consistently supported the imposition of a carbon price, despite the Indian government’s desire for a concession. On climate action, the two countries have been collaborating to strengthen R&D partnerships aimed at decarbonisation.
Other critical areas India and the UK are working together in important fields including artificial intelligence, semiconductors, and high-performance computing. SRAM & MRAM Technologies, a British company, has committed to investing Rs 30,000 crore in India’s semiconductor industry. The two countries have been collaborating on cybersecurity through an Enhanced Cyber Partnership. Besides the US, the only other nation with which India has an annual Cyber Dialogue is the UK.
Way forward
Relations between India and the UK have not been significantly strained by India’s links to Russia, despite Britain’s ardent backing for Ukraine. Smoother cooperation is being made possible by the growing marginalisation of historical irritants like the Pakistan and Khalistan conflicts that long soured bilateral relations.
India-UK relations under a restructured Labour party seem bright since Starmer has taken substantial steps to address Indian concerns. India’s ties with the UK are at an interesting crossroads. Regardless of the direction taken, relations seem poised to continue on an upward trajectory. India is the most populated and fastest-growing country in the world, yet the UK, as a P5, G7, and Five Eyes member, continues to have enormous worldwide influence.
Five Eyes is an intelligence-sharing network consisting of Australia, Canada, New Zealand, the UK, and the USA. This group of five countries is based on surveillance and signal intelligence (SIGINT). The alliance come into being after the 1946 War and was formalised through an agreement for cooperation in signals intelligence.
Starmer has promised a ‘reset’ for both the nation and the Labour Party’s ties to the Indian diaspora in order to establish a ‘new strategic partnership’ as India is an important market for the UK. Now is the time to leverage synergies and convergences in favour of the larger picture as both countries try to carve out positions for themselves in a dynamic emerging order.
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