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What does a Labour Win in the UK mean for India?

The announced election results on 5th July confirmed the trends indicated by the exit polls. Keir Starmer’s Labour Party has replaced Rishi Sunak’s Conservative party, marking the end of their 14-year tenure in the UK parliament. This change signifies a shift towards a center-left Labour government in Britain, reflecting a renewed emphasis on liberalism, human rights in foreign policy, and engagement-oriented bilateral relations. Considering that the Labour Party campaign focused on “Change” – within the party and for the country, but what ‘change’ entails for India and its diaspora?

Keir Starmer, who succeeded Jeremy Corbyn as the leader of the Labour Party in April 2020 and has now been elected as the Prime Minister, has demonstrated a pragmatic and interest-based approach to the relationship with India during his election campaign. The Labour Party’s 2024 election campaign featured numerous Indian-origin candidates, and the party’s manifesto highlighted the India-UK Free-Trade Agreement (FTA) signed in January 2022. Moreover, Starmer’s position against anti-India sentiments, including discussions surrounding the Kashmir issue that arose during Jeremy Corbyn’s term, indicates that PM Starmer is focused on rebuilding and strengthening the party’s relationship with India and the British Indian community.

Socio-Political Outlook

Keir Starmer has been actively engaging with the significant British Indian community, including students and working professionals, totalling approximately 1.5 million people, with around half a million residing in London. In his efforts to support the Indian diaspora with the spirit of ‘Seva,’ he has emphasized the importance of rejecting any instances of Hinduphobia within the UK, during his recent visit to the Swaminarayan Temple in Kingsbury. Highlighting the party’s commitment to upholding inclusive values, Labour Party Chair Anneliese Dodds has stated that the party has taken measures to remove members with extremist views against India and has called on the Indian diaspora to report any instances of anti-India sentiment, ensuring prompt action will be taken. The party’s participation in community events and acknowledgment of significant cultural celebrations reflects its dedication to developing policies and initiatives that foster a more inclusive society for British Indians.

Taking into account the reputation of UK universities for delivering high-quality education, conducting cutting-edge research, and maintaining a strong global standing, and in consideration of the India – UK Free Trade Agreement’s focus on education, there is potential for Indian students to leverage scholarship opportunities in a spirit of diplomatic collaboration. Initiatives to facilitate student exchanges through scholarships like the GREAT Scholarship, Chevening Scholarship, Commonwealth Scholarship, and others, as well as the Graduate Route visa, are likely to be promoted. However, the Labour Party is anticipated to vigorously advocate for its position in visa negotiations, particularly given its significance as a challenging and sensitive issue in British politics. Despite cross-party agreement on reducing immigration, negotiations on temporary visas for Indian workers in the UK service industry might present a complex scenario for the Labour Party.

The issue of visas is an important aspect of the India-UK Free Trade Agreement. The UK is emphasizing prioritizing skilled workers. Given that in the years 2022-2023, India was the leading source of newly recruited overseas doctors (at 20%) and nurses (at 46%) in the UK, among other overseas workers, it raises the question of whether England’s health worker education, training, and employment of Indian nationals could have a positive impact on the strained National Health Service (NHS).

In 2020, on the Kashmir issue, Starmer adopted a diplomatic and balanced approach, in contrast to the stance taken by his predecessor. As leader of the “Internationalist Party,” he refrained from advocating for international intervention and instead emphasized the importance of bilateral resolution between India and Pakistan. He also highlighted the Labour Party’s policy of not taking positions on internal matters of sovereign nations. This strategic shift was aimed at addressing the concerns of the British Indian community and fostering improved relations with the Indian government.

Economic Outlook

In light of current economic conditions and the opportunities arising from Brexit, the party aims to foster mutual understanding, rebuild trust, and encourage bilateral collaboration within a post-Brexit landscape. The government has articulated its commitment to forging a “new strategic partnership” under the India-UK Free Trade Agreement, recognizing the potential for Britain to tap into the burgeoning Indian market and mitigate the impact of high tariff barriers. The potential 15th round of negotiations is anticipated to yield tangible and constructive outcomes. Given the Labour Party’s substantial parliamentary influence, there is an expectation that they will play a pivotal role in securing an agreement.

Despite India’s remarkable economic growth, now established as the world’s third-largest economy, there is some concern regarding a pushback in import duties on products such as Scotch whisky, food items, and electric vehicles, as well as the facilitation of travel for professionals in the British IT and healthcare fields. This free trade agreement is also seen as an essential foundation for future trade alliances, including those with the European Union (EU) and the European Free Trade Association (EFTA) nations.

Looking Forward

We anticipate that the Labour Party will uphold the principles outlined in its manifesto while placing greater emphasis on fostering fair and sustainable business practices. This may involve implementing new regulations concerning labour rights, environmental sustainability, and social justice, potentially impacting the nature of UK-India business investments. Furthermore, we foresee a heightened focus on multilateralism, and cooperation through international bodies, which could shape collaboration between the UK and India on global challenges such as climate change, security, and public health.

Given Prime Minister Modi’s response to Kier Starmer’s win, expressing his optimism for a positive and constructive collaboration between India and the UK, it is expected that the bilateral relationship will flourish, encompassing cultural diplomacy, scholarship diplomacy, and a forward-looking realist approach to address the needs of both nations at the international level. At the local level, there may be instances of advocacy and peaceful engagement by the Indian diaspora on issues such as the farmer’s protest, reservation matters, and the Khalistan movement, which could consequently influence the political dynamics in India. Finally, on a national scale, the interplay of geopolitical dynamics in a post-Brexit and climate-impacted world may shape the specific policies and priorities of the Labour leadership, hopefully making meaningful progress towards realizing the UK-India 2030 Roadmap.

Sources

https://migrationobservatory.ox.ac.uk/resources/briefings/migration-and-the-health-and-care-workforce/

Prof. Nidhi Piplani Kapur
Prof. Nidhi Piplani Kapur is Head, Symbiosis Centre for European Studies (SCES), Symbiosis International (Deemed) University (SIU)
Ms Nikita Varghese
Senior Analyst MitKat Advisory, India
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