Sunak Exits Downing Street, Successor Starmer Revives Hope For Free Trade Agreement With India

London: The year earmarked for general elections in both India and the UK was destined to throw up many new scenarios on the political front. Among them was a decision to relaunch a “mutually beneficial” Free Trade Agreement (FTA) between the two countries.

Just as India’s mammoth democratic exercise edged towards its phased conclusion in 2024, Britain's first Indian-origin prime minister Rishi Sunak surprised many within his own Conservative Party by calling an earlier-than-expected election on July 4 – exactly a month on from a third term win for Prime Minister Narendra Modi’s National Democratic Alliance.

This meant the FTA talks, having entered their 14th round of intense negotiations, slipped into a more uncertain phase until the new Labour Party-led government committed itself to "deepening our bilateral ties".

"We agreed to raise the ambition of our UK-India comprehensive strategic partnership... Crucially, this work will start with trade and investment, and I am pleased to say that we agreed to relaunch Free Trade Agreement negotiations early in the new year,” said newly-elected British Prime Minister Keir Starmer after his first meeting with Modi on the sidelines of the G20 Summit in Brazil last month.

It mapped out a clearly defined landscape for the future of the India-UK trade ties, which official UK government statistics clock at GBP 42 billion a year in the 12 months to June 2024.

Sunak may not have succeeded in getting the FTA over the line, but, as he admitted in his resignation speech at the doorstep of 10 Downing Street, British voters had given a “clear signal” in favour of change.

The 44-year-old leaves behind quite the legacy despite presiding over the Conservatives' worst electoral performance in history. 

His words that “one of the most remarkable things” about modern Britain is just how “unremarkable” his migrant roots were to the top job will resonate with many, not least a 1.8-million-strong Indian diaspora.

Having resigned after the bruising election defeat, Sunak served as interim Opposition leader before handing over the reins to Kemi Badenoch as the new Tory leader.

A fellow British Indian leadership hopeful, Priti Patel, soon returned to the frontbenches of Parliament as shadow foreign secretary in a House of Commons with a record of nearly 30 parliamentarians of Indian heritage – including Lisa Nandy as Culture Secretary and Seema Malhotra as immigration minister.

Under Malhotra, the UK introduced measures to curb rising migration, including giving an independent body more power to reduce reliance on foreign labour and expedite the return of illegal immigrants.

She has a tough task ahead of digitising the entire UK visas and immigration system, the deadline for which has been extended until March 2025.

Indian students and professionals are among those impacted, even as their numbers began registering a steady decline this year with the previous government’s clamp down on accompanying spouses and hiked minimum salary cut-offs.

A simmering anti-immigration sentiment was behind a flurry of riots triggered by misinformation around the Welsh-born suspect behind a fatal stabbing of three schoolgirls in Southport, north-west England, at the end of July.

While anti-racism activists turned out for large counter-protests, the issue of migration will continue to dominate the news agenda in the new year even as businesses struggle to meet skills requirements across different sectors.

It was against this backdrop that the BT Group, back in August, welcomed Bharti Global’s acquisition of a significant stake in the British telecom major as a “great vote of confidence”. Chairman Sunil Bharti Mittal described the investment in an “iconic” British company as a “significant milestone” for Bharti Enterprises.

Another Indian multinational, Tata Steel, also hit a major milestone as it shut down its furnaces at the UK’s largest steelworks in Port Talbot, Wales, to transition towards greener steelmaking.

It came just before Tata Group icon Ratan Tata, behind setting the course for several cross-sector India-UK tie-ups, breathed his last in Mumbai on October 9. Business and Trade Secretary Jonathan Reynolds led the tributes in the UK to “truly a titan of the business world and someone who played a huge role in shaping British industry”.

The two-way flows were reflective across different areas beyond business and trade, especially over Diwali – celebrated widely across UK government corridors.

Starmer followed in the footsteps of his Hindu predecessor to light diyas on the doorstep of Downing Street but courted controversy when meat and alcohol were served during the festivity.

“We understand the strength of feeling on this issue and so would apologise to the community and assure them it will not happen again,” his spokesperson said.

The apology came just before Starmer met with Modi, who also raised the issue of long-pending extradition requests – including fugitive diamond merchant Nirav Modi, who remains behind bars at Thameside, south-east London, after another failed bail attempt in May this year.

Sanjay Bhandari, a consultant in the defence sector wanted in India on alleged tax evasion and money laundering charges, won a High Court appeal against his extradition order which is to conclude in the new year.

Also expected in 2025 is King Charles III’s return to Bengaluru for a wellness retreat where the 76-year-old monarch and wife Camilla made a private stopover in October on their way back from the Commonwealth Heads of Government Meeting (CHOGM) in Samoa.

It came at the close of a tough year for the royals with Charles and his daughter-in-law, Kate Middleton, revealing their cancer diagnosis earlier. However, they are both back on official duties following their treatment and looking ahead to a packed schedule in the new year.

As 2024 comes to a close with both nations reaffirming their commitment to deepening trade, business, and cultural ties, 2025 holds promise for a stronger partnership and new opportunities on the global stage.