British Prime Minister Theresa May’s India visit, which ended on Tuesday, can be read as being closely related to her country’s current preoccupation with Brexit, which the Prime Minister is keen to give early effect to, and the economics and politics related to that extraordinary development. While the full economic impact of disengaging from Europe is not known because the terms of departure are yet to be negotiated, it is evident that the British leadership is seeking to build bilateral investment and trade ties with major economies outside Europe that are still looking quite respectable — places like India and China. For Ms May, India was the obvious first choice for a visit outside Europe because of the historic ties between the two countries — our shared values of democracy and similarity of perspective on many leading world issues, and the fact that Britain hosts a large Indian diaspora.
Considering all this positivity, bilateral trade is only around $14 billion. That is somewhat surprising. During the British leader’s visit, the talks indicated that the effort would be to ramp up British investments in India to around £1 billion. India would doubtless benefit. The potential areas are defence, infrastructure and technology. Finance for investment in India, denominated in Indian rupees, popularly called “masala” bonds, which Prime Minister Narendra Modi referred to in his conversation with the visiting leader, has also lately begun to be raised in London.
In light of these possibilities, when money and technology can move back and forth with ease, Britain has imposed severe restrictions on potential labour movements. To realise the full potential of a productive two-way trade, economy and investment relationship, relatively easier movement of people should be built into the overall structure of ties. London has made much of illegal immigration from India. If the data is such as to cause alarm, although this appears doubtful, New Delhi should take appropriate steps. Equally, Britain needs to ease up on genuine visa-seeking by Indian nationals, for study at British universities and then spillover work prospects for the purposes of gaining experience. These issues can be sensibly settled through negotiations.
Perhaps a time-bar can be thought of. British education and the fostering of a long-term economic relationship — and political and cultural too — is part of our shared historical experience. Why not strengthen it? During the British PM’s visit, London agreed to make quick visas available to Indians of wealth alone. This will produce a weak and skewed relationship in the end. Ms May needs to shed her earlier home secretary mantle and adopt a more accommodative stance. Steep salary barriers for Indian working professionals to qualify for a British visa is also a poor idea. We all need to loosen up.
