{"id":88018,"date":"2024-07-05T06:28:07","date_gmt":"2024-07-05T06:28:07","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/07\/05\/uk-elections-how-keir-starmers-400-paar-feat-for-labour-party-will-impact-india-britain-relations\/"},"modified":"2024-07-05T06:28:07","modified_gmt":"2024-07-05T06:28:07","slug":"uk-elections-how-keir-starmers-400-paar-feat-for-labour-party-will-impact-india-britain-relations","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/07\/05\/uk-elections-how-keir-starmers-400-paar-feat-for-labour-party-will-impact-india-britain-relations\/","title":{"rendered":"UK Elections: How Keir Starmer’s 400-paar feat for Labour party will impact India-Britain relations"},"content":{"rendered":"
\"UK<\/div>\n
The change of guard in the UK brings the possibility of a potential change in government policies. But how it will affect India, a key partner of the UK, which is actively in talks for a trade deal?<\/p>\n

Labour Party<\/a> has surpassed the halfway mark of 650 constituencies needed to secure a parliamentary majority of at least 326 seats. Initial exit polls on election night predicted 410 seats for the Opposition party, but current trends and results indicate they are likely to secure around 408 seats, while the Conservative Party<\/a> is expected to secure approximately 150 seats.<\/p>\n

A landmark free trade agreement (FTA) with India was seen as high on the agenda of both Conservatives or the Opposition Labour.<\/p>\n

Conservative Party manifesto stated, “We will finalise a free trade agreement with India, alongside a deeper strategic partnership on technology and defence.”<\/p>\n

Under the Scotland section, the party manifesto references one of the UK’s key asks in the agreement to “press for the permanent removal of tariffs on Scotch whisky with the US government and work to achieve a significant tariff reduction in India through free trade agreement discussions”.<\/p>\n

Keir Starmer<\/a>, most likely to be next UK PM, made it a manifesto pledge to pursue a “new strategic partnership” with India, including an FTA, if handed a mandate to form a Labour-led government in Thursday’s general election.The Labour Party has been focussed on highlighting how they stand ready to get the FTA over the line after the Tories missed their Diwali 2022 deadline.”Many Diwalis have come and gone without a trade deal and too many businesses have been left waiting,” David Lammy, the party’s shadow foreign secretary, said in his address at the India Global Forum (IGF) in London last week.<\/p>\n

“My message to [Finance] Minister Sitharaman and [Trade] Minister Goyal is that Labour is ready to go. Let’s finally get our free trade deal done and move on,\u201d he said.<\/p>\n

Labour’s manifesto pledge also echoes this sentiment, stating: \u201cWe will seek a new strategic partnership with India, including a free trade agreement, as well as deepening cooperation in areas like security, education, technology and climate change.\u201d<\/p>\n

India-UK FTA<\/h2>\n

The FTA talks formally kicked off in January 2022 when Boris Johnson was the British prime minister and have since had to contend with political turmoil that first led to a short-lived Liz Truss premiership followed by Rishi Sunak<\/a> as Britain’s first Prime Minister of Indian heritage.<\/p>\n

There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.<\/p>\n

The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from 20.36 billion in 2022-23.<\/p>\n

How is markets seeing the UK election?<\/h2>\n

Arnab Das, Global Market Strategist for EMEA at Invesco, commented that the UK election unfolded predictably, marking a shift in power from the right towards the center and left. He noted that immediate changes are unlikely, with only minor adjustments expected in tax policies. Das emphasized that while stability is a theme, its impact in the short term may be limited. Looking ahead, he suggested that significant changes might unfold over the course of years, if not longer.<\/p>\n

On how the markets look at Labour victory in the UK, Das said, ” I do not think we are going to get the kind of big surprise that we had in India. We had a surprise in Mexico. We had a surprise in South Africa. We had a surprise just earlier in the week in the French elections and in the European parliamentary elections a few weeks before that for France. So, we have had a lot of electoral surprises. Possibly we are going to have some important unexpected change in the US election. But I think the UK election was relatively predictable as to the big picture here, which is that power switching from the right to the centre and left. <\/p>\n

He added, “Not much is going to change in the short term. Some symbolic changes in taxes here and there, this idea of stability I do not think it is going to make a huge amount of difference in the short term. I think we are going to need to see this play out over years, if not a period of at least a couple of parliaments before the UK can rediscover its mojo.” <\/p>\n

Rishi Sunak: The history maker<\/h2>\n

Rishi Sunak’s place in the history books is set to be written as Britain’s first Prime Minister of Indian heritage is secure.<\/p>\n

The 44-year-old was undoubtedly the underdog in the election, coming at the end of a long line of Conservative Party leaders over 14 tough years that underwent some seismic shocks in the form of Brexit and then the COVID pandemic. <\/p>\n

It was in the midst of the latter that Sunak shone as Britain’s first Indian-origin Chancellor, stepping up to the seemingly impossible task of reassuring a panicked public about their finances. However, the bond between him and his boss at the time, Boris Johnson, fell prey to the latter’s downward popularity spiral with the scandal of lockdown law-breaking party-gate scandal.<\/p>\n

Sunak was elected Conservative Party leader on Diwali day in October 2022, when he entered 10 Downing Street<\/a> as the youngest British Prime Minister in 210 years and the country’s very first non-white leader.<\/p>\n

In his first address at the doorstep of 10 Downing Street as Prime Minister, Sunak pledged to approach the country’s problems with “compassion” and “to place economic stability and confidence at the heart of this government’s agenda”.<\/p>\n

However, he took charge at a particularly volatile period amid soaring inflation made worse by predecessor Liz Truss’ disastrous mini-budget. While he succeeded in his aim to bring inflation back down, the wider sense of anti-incumbency against his deeply divided party has only intensified.<\/p>\n<\/div>\n


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The change of guard in the UK brings the possibility of a potential change in government policies. But how it will affect India, a key partner of the UK, which is actively in talks for a trade deal? Labour Party has surpassed the halfway mark of 650 constituencies needed to secure a parliamentary majority of […]<\/p>\n","protected":false},"author":2,"featured_media":88019,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-111505137,imgsize-7282.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[76336,62754,62757,67,13194,6032,76335,76334,76337,3959,76333,843,62756,1697,18167,24683,27876,76332],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/88018"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=88018"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/88018\/revisions"}],"predecessor-version":[{"id":88020,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/88018\/revisions\/88020"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/88019"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=88018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=88018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=88018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}