As India and the UK continue to negotiate the terms of their Free Trade Agreement (FTA), both nations need to realise removing visa obstacles will not only help the tourism sector to grow but help to strengthen overall economic ties.
The UK is one of the most important inbound source markets for India. However, the absence of e-visa facility for travellers from the UK looking to visit India coupled with delays in getting appointment dates during the peak tourist season which has begun is a matter of concern for the industry.
As per a report published in Bloomberg, Rishi Sunak’s UK government is in talks with India over whether to increase the number of business visas granted to Indian nationals as part of a potential trade deal, a stance that risks causing friction in the new prime minister’s top team.
Business visas remain an area of “active negotiation” in the discussions, Trade Minister Greg Hands told the House of Commons earlier this month. He said talks are complete on the majority of the deal.
The UK trade minister stated that an agreement with India would benefit exporters as they could reach out to a billion consumers. However, Home Secretary Suella Braverman recently expressed concerns over loosening visa arrangements.
India and Britain launched negotiations for the FTA in January with an aim to conclude talks by Diwali but the deadline was missed due to a lack of consensus on issues.
Barverman is a hardline Brexiteer. She appeared to have opposed a more generous visa policy in an interview with the Spectator. “I do have some reservations. Look at migration in this country — the largest group of people who overstay are Indian migrants,” the UK Home Secretary said in the interview as reported by Bloomberg. Braverman also said that she had concerns about having open migration policy with India.
Notably, Sunak is already facing the brunt of the opposition by re-appointing Braverman as the Home Secretary almost after a week she resigned from the post over a security breach. As per reports, Braverman’s remarks regarding the open migration policy also did not go well with former prime minister Liz Truss. Notably, Truss favoured a more flexible migration policy.
However, Hands said that increasing the number of temporary business visas for Indians was not related to permanent migration. “In the area of trade, what we’re talking about is mode four arrangements. These aren’t immigration arrangements. These relate to business visas, not for permanent settlement,” UK’s Trade Minister said as quoted by Bloomberg. As per Hands, around 16 chapters out of a total of 26 policy areas have been agreed upon until now.
The total trade between India and the UK stood at USD 17.5 billion in 2021-22. India has in recent times signed trade deals with the United Arab Emirates and Australia but talks with the UK had hit a snag over easier access to Indian skilled workers.
UK Foreign Secretary James Cleverly arrived in India on October 28 (Friday) for his first official trip to the country – to meet his counterpart and discuss strengthening the UK-India relationship. He is visiting Mumbai and the Indian capital New Delhi.
“Our relationship with India is hugely important to me; as the world’s largest democracy, India is a natural partner for the UK in the Indo-Pacific. It is an economic and tech powerhouse. Our deeper ties will boost both our economies and help to tackle global security challenges. I look forward to working even more closely with India when it takes up the G20 Presidency in December,” said Cleverly.
In a free trade agreement, two countries either eliminate or significantly reduce customs duties on the maximum number of goods traded between them, besides easing norms for promoting investments and services trade.
The UK is also a key investor in India. New Delhi attracted foreign direct investment of USD 1.64 billion in 2021-22. The figure was about USD 32 billion between April 2000 and March 2022.