The Importance of the Relationship Between the United Kingdom and India

Lord Bilimoria Excerpts

Thursday 19th January 2023 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, I have just landed back from India this morning. I was born and brought up in India, and after my studies here in the UK, I started Cobra Beer which, I say with humility and pride, is today a household name and the most famous Indian brand of any sort in the UK. In 2003, I was appointed as the UK chair of the Indo-British partnership in the Foreign Office, and my Indian co-chair was none other than Nārāyana Mūrthy, our Prime Minister Rishi Sunak’s father-in-law. Rishi Sunak and I are proud members of the 1.6 million Indians in the UK, as the noble Baroness, Lady Verma, mentioned—I thank her for initiating this debate—who are doing exceedingly well in the “living bridge”, as Prime Minister Modi calls us. In 2007, I founded the UK India Business Council, of which I am the founding chair.

India has now overtaken the UK and is the fifth largest economy in the world. It is also the fastest growing large economy in the world, with 1.4 billion people. With 75 years of democracy, it is a young country. It had a growth rate of 8.7% in the last financial year, and it has contributed one in 10 unicorn companies, with over 100 unicorns. It is also the fourth largest producer of renewable energy and solar power. In every aspect, India is going from strength to strength—including during the pandemic, when it produced billions of vaccines, with the Serum Institute of India partnering with Oxford University and AstraZeneca.

I am co-chair of the All-Party Parliamentary Group for International Students. Students from India have now overtaken those from China as the largest group of international students. Foreign universities are now being allowed to open up in India; that is a great opportunity for British universities. Indian universities are now starting to want to have a presence here in the UK—for example, the Indian Institute of Technology is partnering with the University of Birmingham, where I am chancellor, and will ideally open a physical presence here in the UK.

The UK-India free trade agreement is well-advanced. Although our trade at the moment is worth £29.6 billion, India is only the 12th largest trading partner of the UK. That is not enough; it should be so much higher. I am sure the Minister will agree that we should conclude the FTA as quickly as possible, but not in a rush—it needs to be as comprehensive as possible. I am delighted by our chief negotiator, Harjinder Kang, and wish him every bit of luck. He is, of course, a governor of the University of Birmingham, where I am chancellor. The young professionals scheme has just been concluded; 3,000 degree-educated nationals from India will be able to spend two years here, and vice versa. That is wonderful news.

The integrated review talked about the tilt to the Indo-Pacific. I am a trustee of Policy Exchange; we produced the report on that idea, and the Government acted on it. I suggest—I ask the Minister if he agrees—that the UK should join the Quad, the defence and security alliance between the USA, Australia, Japan and India. We should have “Quad-plus”, thus circling the world.

We need large prime ministerial delegations. I have been on every single delegation, under Tony Blair, Gordon Brown, David Cameron and Theresa May, but Boris Johnson did not take a delegation—there were only two of us from India present. I suggest that Rishi Sunak takes one; we should do that as soon as possible.

On the one hand, we have the India Advisory Council, chaired by the Minister, but on the other, the UK-India round table has been disbanded. That needs to be revived. Will the Minister agree? We had UKIERI, Teach India and the two-year post-graduation work visa from it. The CEO forum has not met; we need to revive that. Defence alliances need to continue as well. We are in a race. Everyone wants to do business with India. We need to go the extra mile.

To conclude, as a boy, Narendra Modi sold tea at his father’s tea stall at a railway station in Gujarat. Today he is one of the most powerful people on this planet as Prime Minister of India. Today India has the presidency of the G20. Today India has a vision to become, in the next 25 years, the second-largest economy in the world with a GDP of $32 billion. The Indian express has left the station. It is now the fastest train in the world—the fastest-growing major economy in the world. The UK must be its closest and most trusted friend and partner in the decades ahead.