India and Southeast Asia: Free Trade Agreements

Lord Sahota Excerpts

Thursday 6th March 2025 Lords Chamber

[Lord Sahota (Lab)]

My Lords, I thank the noble Baroness, Lady Anelay of St Johns, for securing this very important debate. I wish it was longer than one hour, but we are where we are.

The buzzword these days is trade. If noble Lords do not believe me, ask President Trump. It is trade that makes the world go round. These days, when it comes to a healthy relationship with another country, it is a healthy trade agreement that counts the most. Everything else comes after—mostly everything, and not always.

The UK and India have long historic and cultural links, going back hundreds of years. Every year, thousands of students come to the UK to study. Some of the Indian Prime Ministers have studied in UK universities. Dr Manmohan Singh was one; he is credited with opening up the Indian economy to the world—some even say that he is the saviour of the Indian economy. Then there is a large Indian diaspora, contributing not only to the UK’s economy but to academia and, dare I say, politics.

India is on the move. Its GDP is now the fourth-largest or fifth-largest in the world, ahead of the UK, and is on track to surpass Germany and Japan in the next decade. It is growing at over 70% annually, a pace that most developed countries can only dream of. Its ambition is clear: India wants to become a developed economy by 2047, when it marks the 100th anniversary of its independence. That means massive investment in infrastructure, technology, manufacturing and so on. It means a growing middle class of some 800 million people, hungry for British goods and services.

Where are we, then, on securing a free trade deal with India? I understand that negotiations have been ongoing for more than two years, and that they are not getting anywhere. It is my understanding that it is India that is dragging its feet. In today’s world, trade is not just about goods and services: it is about relationships, influence and shaping the future of our economy. Can the Minister tell us what the current timeline is for concluding a UK-India free trade agreement? What concrete progress has been made on resolving key sticking points? Trade is about growth, jobs and opportunity. If we get this right, we can shape the UK’s economic future for decades to come, but, if we get it wrong—or worse, do nothing—others will fill the gap. I urge the Government to move swiftly, be bold, and ensure that Britain is at the heart of the fastest-growing region in the world. I look forward to the Minister’s response.