Labour Party Vows Swift India FTA Negotiations if Elected in UK

The UK's Opposition Labour Party has criticised the ruling Conservatives, led by Prime Minister Rishi Sunak, for their handling of relations with India. They accused the government of "over-promising and under-delivering" on this front. Labour declared its readiness to finalise a free trade agreement (FTA) with India if it wins the general election on July 4.

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David Lammy, Labour's shadow foreign secretary, addressed the India Global Forum (IGF) during the final week of the election campaign. He expressed his vision for an FTA that serves as "a floor not a ceiling" in the partnership he hopes to build with External Affairs Minister S Jaishankar. Lammy emphasised that many Diwalis have passed without a trade deal, leaving businesses waiting.

Labour's Commitment to Strengthening UK-India Relations

Lammy assured that Labour is prepared to finalise the FTA and move forward. He stated, "My message to [Finance] Minister [Nirmala] Sitharaman and [Trade] Minister [Piyush] Goyal is that Labour is ready to go. Let’s finally get our free trade deal done and move on." He also mentioned plans to visit Delhi before the end of July if elected.

The UK and India have completed 13 rounds of FTA negotiations aimed at enhancing their GBP 38.1 billion annual trading relationship. However, talks are currently stalled due to election cycles in both countries. Lammy highlighted that the Conservatives have failed to deliver on their promises regarding UK-India relations.

Focus on Democratic Values and Climate Change

Lammy praised India's democratic elections, stating, "I deeply believe that India’s democratic elections, with almost a billion voters, are the most important statement, the most important validation, not only of the democratic ideal but of democratic practice in today’s world." He also congratulated Prime Minister Narendra Modi on his re-election.

Climate change was flagged as a key area for collaboration. Lammy noted that the UK stands in solidarity with India during extreme temperatures across the country. He said, "There can be no energy transition without an Indian energy transition. India is the indispensable partner, not only to Britain but the whole developed world."

Labour's Vision for Future Cooperation

Lammy described India as a "priority" for Labour and an economic, technological, and cultural "superpower." He criticised former Prime Minister Boris Johnson's approach and stated that under Labour, cooperation with India would be limitless. "With Labour, the days of Boris Johnson reciting that old verse from Rudyard Kipling in Asia are over. If I recite a poem in India, it will be Tagore...because with a superpower like India, the areas of cooperation and the areas for learning are limitless," he said.

From a broader foreign policy perspective, Lammy stressed the importance of a "free and open Indo-Pacific" working in partnership with India. He stated, "We stand for a rules-based order and against those who wish to redraw borders by force with a new form of imperialism."

Security Partnership and Personal Connections

Lammy highlighted plans to strengthen security partnerships with India across various domains including military, maritime security, cyber technologies, defence cooperation, and supply chain security. He emphasised that Europe and Asia are interconnected regions where Britain aims to enhance its security collaboration with India.

Reflecting on his personal connection to India, Lammy shared that his great-grandmother was an Indian from Calcutta who migrated to the Caribbean as an indentured labourer. He also acknowledged the significant contributions of British Indians to modern Britain.

In his concluding remarks, Lammy pointed out India's substantial role in British prosperity. He noted that last year, India was the UK's second-largest foreign direct investment contributor but only its twelfth-largest trade partner. This highlights potential for further growth in UK-India trade relations.