New UK PM Keir Starmer to Boost India-UK Relations, FTA Talks on Agenda

The landslide victory of new Prime Minister Keir Starmer on Friday has opened a new chapter in the UK's relations with India. The Labour Party now leads the stalled Free Trade Agreement (FTA) negotiations that were halted under the previous administration led by Rishi Sunak. High-profile visits by shadow cabinet members, now stepping into Cabinet roles, suggest that India will remain a priority.

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India-UK Relations Under Labour

Despite a manifesto commitment to forge a "new strategic partnership," it remains uncertain how much priority India will receive amid domestic pressures in Britain. David Lammy, the new Foreign Secretary, had promised to visit India by the end of July if elected. The FTA talks began in January 2022 but paused during the 14th round as both countries entered their election cycles this year.

"There is no question in my mind that India will continue to be important for the new Labour government," said Rahul Roy-Chaudhury, Senior Fellow at the International Institute for Strategic Studies (IISS). However, he noted uncertainties about the extent of this priority and whether it will focus on the Euro-Atlantic or Indo-Pacific regions.

Strategic Importance of India

Roy-Chaudhury suggested appointing a dedicated "India Champion" to set clear ambitions for relations with one of the world's largest economies. Lord Karan Bilimoria, a crossbench peer who has led many trade delegations to India, expressed confidence that Starmer would improve student visas and end hostile immigration rhetoric.

"With Keir Starmer now being in power, this is a great opportunity to turbo-charge the UK-India relationship, which was very strong under former Tory prime minister David Cameron but since then has not been anywhere near as effective," said the founder of Cobra Beer.

Manoj Ladwa, founder of the UK-based India Global Forum (IGF), described the FTA as a "litmus test" for future relations. He cautioned that Starmer must insulate himself from domestic activist groups seeking to influence Labour's foreign policy negatively.

Progressive Realism in Foreign Policy

Other experts pointed to Labour’s "progressive realism" stance on foreign policy, indicating a pragmatic approach. Chietigj Bajpaee, Senior Research Fellow at Chatham House in London, noted that while there are sticking points in the FTA negotiations, consensus has been reached in most chapters.

"The engagement they [shadow cabinet] have been having recently has really helped to build up their understanding of India, and they’ve been incredibly positive about what they want to achieve in India," said Kevin McCole, managing director of UK India Business Council (UKIBC).

McCole is heading to India next week to build momentum around trade talks. He emphasised refreshing and extending the 2030 Roadmap to include trade and investment elements and resuming FTA negotiations swiftly.

Meanwhile, Lammy's upcoming visit to India as the new UK Foreign Secretary will likely indicate how high India ranks on the incoming government's agenda. This visit could provide early signs of Labour's commitment to strengthening ties with India.

The Labour government aims to prioritise completing the FTA and addressing immigration issues sensibly. This approach contrasts with what Lord Bilimoria described as the Conservative Party's extreme right-wing stance on immigration.

The new administration's approach towards India will be closely watched as it navigates domestic challenges while aiming to strengthen international partnerships.