Liz Truss is UK's next PM: What does her win mean for India?

Though many were hoping that Indian-origin Rishi Sunak would prevail in the UK prime minister’s race, Conservative Party leader Liz Truss’ election can only be seen as a good thing for New Delhi – especially given her past statements on India. Prime Minister Narendra Modi on Monday took to Twitter to wish Truss well soon after the results, expressing confidence that the India-UK Comprehensive Strategic Partnership will be further strengthened under her leadership. On Tuesday, External Affairs Minister S Jaishankar said he is confident that the India-UK relationship will grow further under her leadership. “Your commitment to raising India-UK cooperation to a higher level is well known. Confident that our relationship will grow further under your leadership.” Let’s take a closer look at Truss’ statements on India and what her victory could mean for New Delhi particularly in the areas of trade and defence: Trade India has much to look forward to on trade given Truss’ public utterings. Truss has been among the senior British politicians known for championing deeper India-UK strategic and economic ties, describing them as a “sweet spot” of global trade dynamics. India’s main exports to the UK include ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment and parts, spices, metal products, machinery and instruments, pharma and marine items. Major imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments, non-ferrous metals, chemicals and machinery. In the services sector, the UK is one of the largest markets in Europe for Indian IT services. The bilateral trade increased to $17.5 billion in 2021-22 compared to $13.2 billion in 2020-21. India’s exports stood at $10.5 billion in 2021-22, while imports $USD 7 billion. Truss as International Trade Secretary who signed off on the India-UK Enhanced Trade Partnership (ETP) for the Boris Johnson led government in May last year, which marked the starting point of the ongoing free trade agreement (FTA) negotiations. In such pacts, two countries either eliminate or significantly reduce customs duties on the maximum number of goods traded between them besides easing norms for promoting investments and services trade. She has committed herself to getting the India-UK FTA done, preferably by Diwali – the deadline set by predecessor Boris Johnson – but “definitely by the end of the year”. [caption id=“attachment_11185421” align=“alignnone” width=“640”] File image of Boris Johnson. AP[/caption] Mint quoted Truss as saying “I want to get this trade deal done, preferably by Diwali, but definitely by the end of the year, and I want to make sure that the trade deal is as deep as possible covering everything from life sciences to technology to agriculture.” In such pacts, two countries either eliminate or significantly reduce customs duties on the maximum number of goods traded between them besides easing norms for promoting investments and services trade. The 47-year-old senior Cabinet minister made visits to India and held virtual talks with Commerce Minister Piyush Goyal, during which she described the country as a “big, major opportunity”.

“I see the UK and India in a sweet spot of the trade dynamics that are building up,” said Truss soon after signing the ETP.

“We are looking at a comprehensive trade agreement that covers everything, from financial services to legal services to digital and data, as well as goods and agriculture. We think there is strong possibility for us to get an early agreement, where we lower tariffs on both sides and start to see more goods flowing between our two countries,” she said. On her promotion as Foreign Secretary, Truss handed over the baton at the Department for International Trade (DIT) to Anne Marie-Trevelyan, who is widely expected to continue in her role as International Trade Secretary and take forward the UK-India FTA talks. More recently on the campaign trail in her contest with former chancellor Rishi Sunak to be elected Tory leader, Truss reaffirmed that she remains “very, very committed” to strengthen bilateral ties at a hustings event of the party’s Conservative Friends of India (CFIN) diaspora group. Goyal express optimism Commerce and Industry Minister Piyush Goyal has expressed hope for early conclusion of talks with Britain for a free trade agreement, aimed at boosting bilateral economic ties. “A little bit of political changes may have derailed (conclusion of FTA negotiations) by few weeks, but I do hope (that) with…Liz Truss assuming prime ministership of the UK, we may now be able to make up for some lost time (to conclude the FTA negotiations),” Goyal said here on Monday while addressing members of the Institute of Chartered Accountants of India (ICAI). [caption id=“attachment_10904501” align=“alignnone” width=“640”] Commerce and Industry Minister Piyush Goyal. Twitter/ @PiyushGoyal[/caption] Officials in India were looking to conclude the negotiations for the trade agreement by 31 August but political developments in Britain could have slowed the talks a bit. “We are at an advanced stage (of FTA talks) with the UK…Miss Anne-Mary, who is currently the trade and investment Minister, and I are in regular contact and we are shooting for an agreement between India and the UK within the next few months possibly by Diwali,” Goyal said. India has become one of the world’s attractive investment destinations and it is evident from the way world leaders and developed countries are making every effort to expand trade and investments into India and looking for bilateral agreement, he added.

Talks are happening on certain goods such as scotch and automobiles from the UK side and certain products from the Indian side.

As this Hindustan Times editorial noted, “On the trade front with India, Truss’ victory is expected to give a fillip to efforts to stitch up a free-trade agreement by the target date of Diwali.” Defence ties Truss sees countries like India as a bulwark against Russia and China. Truss has repeatedly flagged enhanced defence and security cooperation with the Indo-Pacific region in order to meet her “network of liberty” goals as a counter-balance to the aggression of Russia and China. In a key foreign policy speech earlier this year, she declared: “Russia and China are working together more and more, as they strive to set the standards in technologies like artificial intelligence, assert their dominance over the Western Pacific through joint military exercises and in space through closer ties. “China and Russia have spotted an ideological vacuum and they’re rushing to fill it. They are emboldened in a way we haven’t seen since the Cold War. As freedom-loving democracies we must rise up to face down these threats. As well as NATO we are working with partners like Australia, India, Japan, Indonesia and Israel to build a global network of liberty,” according to Truss. [caption id=“attachment_10884311” align=“alignnone” width=“640”] Russian president Vladimir Putin. AP File[/caption] As per Mint, in March 2022, Truss urged India to choose UK over Russia in the realm of defence and security. “India is currently 60 per cent  dependent on Russian weapons but obviously they are now concerned about Russia’s strategic relationship with China and also the efficacy of some of those weapons, so there is a real opportunity for closer partnership,” she was quoted as saying. As per WION, Truss, speaking at the India-UK Strategic Futures Forum alongside Jaishankar, said. “I think it is very significant that sanctions are enforced on Russia.” “Deeper ties between Britain and India will boost security in the Indo-Pacific and globally, and create jobs and opportunities in both countries,” Truss stated. “This matters even more in the context of Russia’s unprovoked invasion of Ukraine and underlines the need for free democracies to work closer together in areas like defence, trade and cyber security,” she said. As per Mint, reacting to India buying oil from Russia at discounted rates, Truss further said: “I’m not going to tell India what to do. What I have said is as a member of the UK Government that has signed up to the Budapest Memorandum, I feel a strong responsibility on behalf of the United Kingdom to take all the action we can, to support the people of Ukraine but that is not the same as going around telling other countries what to do."

But this particular space bears watching.

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As the Hindustan Times editorial cautioned, “However, policymakers in New Delhi will keep a close eye on whether Truss will continue with Johnson’s policy of a tilt towards the Indo-Pacific, including military deployments and closer maritime cooperation with India. That may be the key driver of strategic bilateral ties.” Visas and tourism The prime minister-elect has expressed positive sentiments on this issue. “There is no doubt in my mind that many of the best and brightest in the world are in India. I will continue to look at our visa system to make sure it attracts those people," she was quoted as saying by Mint.

And with seemingly good reason.

Latest immigration statistics released on Thursday show India has overtaken China to account for the largest share of study visas issued by the United Kingdom. [caption id=“attachment_11080851” align=“alignnone” width=“640”] Representational image. PTI[/caption] Nearly 118,000 Indian students received a visa to study in the UK in the year ending June 2022 which is 89 per cent increase from the previous year, the British High Commission said on Thursday. It said the UK continues to be a popular destination for Indian holidaymakers too as Indian nationals accounted for the highest proportion (28 per cent) of visitor visas granted. It said more than 258,000 Indian nationals received visit visas in the year ending June 2022, a 630 per cent increase compared to the previous year when travel restrictions due to the COVID-19 pandemic were still in place. The high commission said Indian nationals also received nearly 103,000 work visas in the year that includes skilled and seasonal workers, adding it was a 148 per cent increase over the previous year. It said Indian nationals continue to be the top nationality granted skilled worker visas, accounting for 46 per cent of all skilled work visas granted globally. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.