Long the front-runner in the race to replace Boris Johnson, Liz Truss is set to become Britain’s 56th Prime Minister and the third woman to hold office. Ms. Truss secured victory by seizing 57% of the share of votes versus former Chancellor, Rishi Sunak’s 42%. Soon after the results, Prime Minister Narendra Modi took to Twitter to wish Truss well, expressing confidence that the India-UK Comprehensive Strategic Partnership will be further strengthened under her leadership.
So what does her victory mean for India?
Trade And Foreign Policy
Given Truss’ public statements, India has a lot to look forward to in terms of trade. Truss is amongst senior British politicians who have advocated for stronger India-UK strategic and economic ties, describing them as a “sweet spot” in global trade dynamics.
The Bilateral trade between India and UK grew to $17.5 billion in 2021-22, up from $13.2 billion in 2020-21. In 2021-22, India’s exports were $10.5 billion, while imports were $USD 7 billion.
Liz Truss’s foreign primary policy priorities will include the conclusion of a comprehensive free trade agreement (FTA) with India. The FTA aims to eliminate or significantly reduce customs duties on the greatest number of goods traded between the two countries, as well as to ease norms for promoting investment and services trade. She has pledged to complete the India-UK FTA by Diwali, the deadline set by her predecessor, Boris Johnson.
On the Indian side, the emphasis has been on improving conditions for professional and student mobility, as well as increasing exports of labour-intensive goods such as leather, textiles, jewellery, processed agricultural products, marine products, pharmaceuticals, and healthcare.
While the priority of the British side is to remove significant barriers to UK businesses exporting to India. Increased access to India’s market, particularly as the country’s middle class expands to a quarter of a billion consumers, will be seen as a significant benefit for UK firms.
India, having overtaken the U.K. to become the fifth largest economy in the world has gradually become one of the world’s most attractive investment destinations and it is evident from the way world leaders and developed countries are making every effort to expand trade and investments in India and looking for bilateral agreement. It is in the interests of the U.K. to develop a stronger economic partnership with India.
Policymakers in New Delhi will also be watching to see if the new British government continues with its Indo-Pacific pivot.
Defence
Truss perceives countries like India as a line of defence against Russia and China. In a vital foreign policy speech this year, she stated, “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 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.”
Truss has emphasized that “Deeper ties between Britain and India will boost security in the Indo-Pacific and globally, and create jobs and opportunities in both countries”
Immigration And Grant Of Visas
Both Indian Students and skilled workers desirous of pursuing higher education and seeking employment in the U.K. have reasons to cheer. Truss has been quoted on the record, stating, “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,”
According to the high commission, nearly 103,000 work visas were issued to Indian nationals last year, including skilled and seasonal workers, representing a 148% increase over the previous year. According to the report, Indian nationals continue to be the most common nationality granted skilled worker visas, accounting for 46% of all skilled work visas granted globally.
As reported by the British High Commission, nearly 118,000 Indian students were granted visas to study in the UK in the fiscal year ending June 2022, representing an 89% increase over the previous year.
