AS UK’S LABOUR WINS BIG, ITS MANIFESTO SEEKS CLOSER TIES WITH INDIA IN TRADE, SECURITY AND MOREby Mark Hannant, Co-Owner/Founder at IndigoCPO |
British voters on Thursday delivered a bloody nose to the UK’s first Indian-origin prime minister Rishi Sunak as they ousted his Conservative government and handed the centre-left Labour Party a massive mandate following their landslide victory.
The keys to No10 Downing Street now belong to Labour leader Sir Kier Starmer. Built on a slogan of “Change”, the Labour campaign was largely pitched as a repudiation of the Conservatives’ record of 14 years in government – a period mired in scandals and the disastrous leadership of Sunak’s predecessor Liz Truss who lasted just 49 days in the job. She, and former International Trade Secretary Liam Fox, were among several high-profile Tories, so-called big beasts, who lost their seats.
Built on a slogan of “Change”, the Labour campaign was largely pitched as a repudiation of the Conservatives’ record of 14 years in government – a period mired in scandals and the disastrous leadership of Sunak’s predecessor Liz Truss who lasted just 49 days in the job. She, and former International Trade Secretary Liam Fox, were among several high-profile Tories, so-called big beasts, who lost their seats.
Ming vase strategy
It’s unclear what to expect from the new government since the Labour campaign – described by commentators as a “Ming vase” strategy of caution and non-committal – was light on specific policy. There was lots of ambiguous talk of “change” and growing the economy and pledges not to increase taxes on working people.
It is clear that “change” does not include a return to the European Union which the UK left in January 2020 following the Brexit vote of 2016. The Labour leader has ruled out a return to the European Union “in his lifetime” but has promised to reduce unnecessary barriers to trade.
Foreign affairs receives relatively little airtime in an election campaign but the Labour manifesto says it will create a “new strategic partnership” with India and deepen cooperation in areas like security, education, technology and climate change.
It also speaks of a signing a Free Trade Agreement between the two countries. Civil servants have been negotiating the terms of the Free Trade Agreement for the past couple of years and it could offer a quick win to a government seeking to kickstart the economy after a period of moribund economic performance.
Whether that deal is a priority for the new Modi-led administration in New Delhi remains to be seen. Labour says it plans to extend cooperation with India in areas of security, education, technology, and climate change.
India wants investment to help it boost its economy and achieve “developed nation” status by 2047. “There is tremendous synergy between the UK and Indian economies,” said Richard McCallum CEO of UK India Business Council, which promotes bi-lateral partnerships. “By prioritising trade and investment, rapidly concluding the FTA, smoothing the two-way flow of students and workers, and deepening R&D collaboration, we can collectively deliver stronger economic growth in both countries. This will create jobs and prosperity in India and the UK as well as being a force for global good.”
He added: India is the most exciting economic story in the world. We are in the middle of the Indian decade, at the start of the Indian century. We expect the new British government to recognise this and prioritise the strategic partnership with India.”
The election campaign showed bi-partisan support for reducing immigration to the UK, which stands at an all-time high. Smaller regional parties, the pro-independence Scottish National Party and Welsh nationalists Plaid Cymru, were the only ones to make a positive case for immigration and highlight the vital role of migrants in the UK’s economy.
The UK’s university sector is a major source of soft power and export revenue. It already has strong ties with India and it will be looking for signs that overseas students are welcome.
More than 100 candidates of Indian origin were on the ballot papers across the UK. Sunak, son-in-law of Infosys co-founder Narayana Murthy, held his seat though there is speculation he will head to California and back to a lucrative career in investment banking. Former Home Secretary Suella Braverman kept her seat boosting her prospects as a possible successor to Sunak as the next Conservative leader.
New MPs for Labour include Shivani Raja who won in Leicester East and Indian-born Kanishka Narayan who becomes the first-ever MP of ethnic minority descent in Wales. In Scotland, Alan Gemmill won the Ayrshire seat for Labour. He previously served as British Deputy High Commissioner to India. living in Mumbai for three years from 2020.Kier Starmer is a former Director of Public Prosecutions, an MP since 2015, the son of a tool-maker, and an avid Arsenal fan. Other key members of the new government will include Rachel Reeves set to be the first female chancellor of the exchequer (or finance minister). David Lammy will be foreign secretary and Yvette Cooper will be appointed home secretary.
Addressing constituents in north London in the early hours of Friday, Starmer said: “Now we can look forward again, walk into the morning, the sunlight of hope, pale at first but getting stronger through the day, shining once again with the opportunity after 14 years to get its future back.”
Outside a steady drizzle set in and overcast skies struck a more sombre note. The country and its incoming government face some major challenges before the sunlit uplands become a reality.
Mark Hannant is the author of Midnight’s Grandchildren: How young Indians are disrupting the world’s largest democracy (Routledge 2019). He splits his time between London and Mumbai.