Britain must accept more immigrants if it wants a free trade deal, Indian diplomat warns

Prime Minister Narendra Modi with British Prime Minister Theresa May
Prime Minister Narendra Modi with British Prime Minister Theresa May

Britain must accept higher levels of immigration from India if it hopes to sign a free trade agreement after Brexit, a senior Indian diplomat has warned, as he predicted it could take up to a decade to secure the deal.

YK Sinha, India’s High Commissioner to the UK, said "freer movement of people and professionals" had to form part of any future deal to ensure it was “mutually beneficial.”

Speaking to Indian business leaders in London, Mr Sinha said he was “very confident” that a “winning partnership” between the two countries would emerge after Britain's departure from the EU.

However, he also warned that signing a free trade agreement was “obviously not going to be easy” and suggested that the deal may not be complete until 2030.

His comments highlight the challenges and concessions Britain will face in securing post-Brexit trade deals with Commonwealth countries as part of its “Global Britain” strategy.

Theresa May and Indian leader Narendra Modi discussed trade in 2016
Theresa May and Indian leader Narendra Modi discussed trade in 2016 Credit: AFP_HU6CX

“When we look at a winning partnership we need to see all the facets of the partnership,” Mr Sinha said.

“It has to be mutually beneficial, it can’t be a one-way street. For instance, you’ve all read about issues of freer mobility of professions. That is something right up there as far as India is concerned.”

The senior official said India wanted to expand the benefits of being a Commonwealth country to include free movement of people and professionals.

“I’m not talking about unfettered access or unrestricted travel, I’m talking about movement of professionals, movement of doctors, technicians, engineers. I think both sides will benefit from this exchange and obviously it has to be a two-way exchange not just one way,” he said.

In his address to the Indian Professionals Forum, he then admitted that the UK and India “hadn’t even started discussions yet” about the post-Brexit deal, and hinted the process could take up to ten years.

“These are important aspects of what could be a winning partnership in 2030,” he said. “I do hope we have that winning partnership much before 2030, certainly by 2030, when India will perhaps be the third largest economy in the world.”

The UK is the largest G20 investor in India and supports up to 800,000 jobs, according to the CBI, and a trade deal with India could increase British exports by £2bn per year. 

Meanwhile, India is one of the world’s largest markets, with more than 1.2bn citizens, while 800 Indian businesses in the UK contribute roughly £26bn to the economy.

Liberal Democrats leader Sir Vince Cable, who was also at the event, told business leaders: “India is now a major economic power, on some measures the third largest in the world after China and the US.  

“It is very much in Britain’s long-term interest to welcome Indian investment, students and professionals, and to have a stronger, deeper relationship with India.”

A spokeswoman for the International Department of Trade said: “The UK cannot negotiate free trade agreements whilst still a member of the EU.

"However, we have started a number of working groups, including with India, to begin discussions on our future trading relationships so we can address barriers, liberalise trade and secure a more outward-looking global market for British businesses when we leave the EU.”

License this content