Whenever a new government comes to a country, there are many practical reasons that drive its efforts to move forward. The British economy is in a very bad state, and for that reason, an FTA (Free Trade Agreement) could be a lifesaving remedy. Therefore, Keir Starmer, who will take on the new responsibilities, will be under significant pressure to make progress on this issue. As we saw in the case of the United States, when the Democrats came to power, relations improved. Even when the Republicans were in power, relations moved forward pragmatically. This is expected to happen in the UK as well.
Now, let’s get to know who Keir Starmer is, his background, and how he has progressed. He is the leader of the Labour Party, and obviously, he has been a lawyer. He is 62 years old. He became the Leader of the Opposition in Parliament in 2020 and has been leading the opposition for 4 years. He ran his campaign very effectively, and after being elected in 2020, he made several changes within the Labour Party, campaigning on the promise of change.
From 2015 to 2024, he served as a Labour Party MP. From 2008 to 2013, he was a Director of Public Prosecutions. As a left-wing lawyer, he made a name for himself, showing his commitment to social justice and human rights. He studied law at Leeds University. His mother was a nurse, and his father was a factory worker. This is a brief background on Starmer.
Now that it is certain he will become Prime Minister and the Labour Party has crossed the halfway mark, it is evident that he will be responsible for delivering on the promises he made, and the changes he spoke of during his campaign. However, experts say it will not be an easy path for him. In districts where the economy needs to change, there is not much room for improvement. Starmer will have to take many revolutionary decisions to bring the economy back on track. Tackling inflation and the high cost of living, which was a major election issue, will take a long time and require many measures.
Regarding the Conservatives, you see, they have spent a lot of time dealing with Brexit. When Liz Truss came in, there were expectations of major changes, but she had to resign quickly. There were many challenges for Rishi Sunak as well.
Since a new Prime Minister will be appointed, it remains to be seen how easy or difficult it will be for them to tackle these challenges. The biggest thing will be that the Labour Party is returning to power after 14 years and does not carry the baggage that the Conservative Party did, with the decisions made by previous leaders, particularly Boris Johnson’s parties during the Covid lockdown when people were dying. Now that the power has changed and the Labour Party is coming into power, they will try to move forward, leaving these things behind.
The Brexit factor still remains. The UK has not yet emerged from it, and it has caused at least a 5.5% loss to the economy. The UK has had to make bilateral economic agreements with many countries. All these things will be accelerated. If trading with India through the FTA also accelerates, it would be significant. For instance, India exports six times more to the UK than it does to Russia. So, the UK will need to invest more seriously in India.
Despite the people-to-people contact, many businesses, and the old colonial ties, things have changed. The Labour Party will try to improve relations with India and address issues related to Brexit, the failing economy, and the post-Covid effects. It will be interesting to see what new policies they bring as the economy is still struggling.
Regarding policies, we will have to see what they are, but many of our people live there, and many students study there. There is also a long-standing relationship between the UK and India.
We expect the new Prime Minister to address these issues. There are about 3.7 million Indians in the UK, making up 3% of the total population, with around 1.8 million voters. Rishi Sunak, who became Prime Minister in October 2022, would have completed two years if he had stayed until October. He had high expectations from the Indian community and in India regarding the FTA. There have been reports that it was about to happen within two months, but several issues still need agreement between the two countries.
The FTA will be a win-win situation for both the UK and India if they can manage to move forward with it.
Regarding Starmer’s policy towards India, the primary goal will be to bring the UK’s economy back on track through bilateral agreements that boost the economy, which has been in decline due to Brexit.
India will closely watch two key parameters: the FTA and the immigration mobility agreements allowing people to work there. Another significant issue is the Khalistani separatists targeting the Indian High Commission, Indian diplomats, and the overall behavior towards them. How the new government handles this will be closely watched by India, as it is of great importance.
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