India and Southeast Asia: Free Trade Agreements

Lord Loomba Excerpts

Thursday 6th March 2025 Lords Chamber

[Lord Loomba (CB)]

My Lords, I welcome this debate and thank the noble Baroness, Lady Anelay, for bringing this important issue before the House. I approach it as someone with many decades of experience at the heart of UK-India trade relations. Indeed, I had the privilege of playing a central role in the twinning of London and Delhi in the early part of this century. Through this, I have seen at first hand how trade has strengthened the relationship between our two nations, reinforcing our bonds as equal partners with deep ties.

At a time of increasing global uncertainty, such ties matter more than ever. A well-structured free trade agreement between the UK and India will create jobs, open new markets for British businesses and enhance investment flows between our economies.

The much-anticipated free trade agreement between India and the United Kingdom stalled for over two years in the midst of political shifts and economic uncertainties. It was brought back into focus with the British Business and Trade Secretary, Jonathan Reynolds, meeting his Indian counterpart, Piyush Goyal, in New Delhi on 24 February and kick-starting two-day discussions. I hope it progresses fast and for the good of the two countries.

The latest round of talks has been marked by a renewed sense of urgency and ambition, as both nations work to iron out the differences and finalise a mutually beneficial agreement. We are aware that there are many complexities, and one impediment to reaching such an agreement has been the UK Government’s reluctance to reform visa rules for overseas students, including from India. It is clearly in both our countries’ interests to encourage academic exchanges, which in turn foster innovation, business partnerships and cross-cultural understanding. It is therefore counterproductive to count overseas students, who bring substantial revenue to our universities and economy, within the immigration statistics unless they seek to remain beyond a reasonable period, such as two years after graduation. Can the Minister confirm that the Government will adopt a pragmatic approach to student visas, recognising their mutual benefit, and ensure that this issue does not impede progress towards a free trade agreement?