British Prime Minister Eyes Stronger Trade Ties with India Post Brexit

British Prime Minister Eyes Stronger Trade Ties with India Post Brexit

FILE- Britain's Prime Minister Theresa May leaves 10 Downing street in London, July 20, 2016.


British Prime Minister Theresa May arrives in India Sunday on her first bilateral visit outside the European Union to lay the groundwork for stronger trade ties post Brexit with the world’s fastest-growing major economy.

But India will press the British leader on tighter visa rules that have diminished the number of Indian students going to British universities and that could impact Indian professionals in the country.

Ahead of the visit, the British leader said the trip was about “expanding our horizons and forging stronger partnerships with countries around the world” following Britain’s exit from the European Union.

In India, immigration concerns

In New Delhi, observers say the visit will test how stricter immigration policies will impact Britain’s efforts to build stronger business partnerships.

While India wants to expand trade ties with Britain, it also wants easier access for its students and skilled workers.

Ahead of the visit, India foreign ministry spokesman Vikas Swarup underlined those concerns, saying, “Indian students and people-to-people relations are important pillars of India-UK ties … we expect mobility issues to be raised during this visit.”

He said restrictions have impacted Indian students staying in Britain after graduation.

“In the last year or so, the number of Indian students enrolling in U.K. universities has gone down by almost 50 percent from around 40,000 to around 20,000 now,” he said.

Those restrictions were introduced into legislation by May when she was interior minister. Changes to visa rules announced last week also will impact Indian professionals in Britain.

“The impression Britain is giving to countries such as India is, we want your business but we don’t want your people,” said London-based political strategist Manoj Ladwa in the Hindu newspaper.

Both sides seek trade deals

However expanding trade ties with Britain is a priority for India, which is the third largest investor in Britain with about 800 Indian companies operating there. Britain is also a major investor in India.

There will be no trade deals on the table during the visit because Britain cannot formally negotiate these until it officially leaves the European Union, but the two countries will explore the possibility of a free trade deal post Brexit.

And while New Delhi has struggled to seal a free trade pact with the European Union for years, it might be easier to do it with Britain, which shares historical ties with India dating back to the colonial era.

“This is a partnership about our shared security and shared prosperity. It is a partnership of potential. And on this visit I intend to harness that potential, rebooting an age-old relationship,” May said in a statement ahead of the visit.

The British leader is scheduled to address a trade-focused technology seminar in New Delhi, meet Indian Prime Minister Narendra Modi on Monday and visit India’s IT hub of Bengaluru on Tuesday.

May is accompanied by International Trade Secretary Liam Fox, Trade Minister Greg Hands, and business leaders from medium- and small-sized companies.



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