India

Lord Wallace of Saltaire Excerpts

Tuesday 18th October 2011 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, I thank the noble Lord, Lord Parekh, for initiating this debate. He said, among other things, in his opening remarks that “only when we seek active engagement with India” will we gain the right to criticise Indian policy. This Government is seeking active engagement with India. That is why the Prime Minister and a very large number of Ministers went out to India this time last year, and that is why we have a continuing programme of visits. We hope to have a bilateral summit very shortly, on a date which is yet to be agreed. It is a major and continuing project. So it is not a question of “only when”—we are attempting to do so.

There are some obstacles—perhaps on both sides. We have to engage with the Indians and we must recognise that in pursuing an enhanced partnership we have a great many competitors. Much has been said in intervening speeches about the decline in the number of Indian students coming to the United Kingdom. Indians have been going to the United States. The United States is the most popular foreign country within India and that is part of what we now have to compete with. As the noble Lord, Lord Giddens, and others know, this is in sharp contrast to the flow of Chinese students to Britain, which has continued to rise and is at a far higher level. It will take a good deal of time and effort to catch up to where we would like to be across a very broad number of spectrums. We have to attract the attention of the Indian elite and of the rising young Indian middle classes—the rising young Indian educated generation. We have to have a broad effort at trade and investment on both sides and further develop relations in the fields of climate change, defence and as an aid partnership.

Having such an excellent Indian diaspora here is a tremendous asset. As the flow of investment in both directions shows, this is already helping to develop closer links, in addition to the historical cultural relationship with India. We are all conscious that we have to build on this. The noble Lord, Lord Liddle, castigated the populist policies of the coalition Government on migration. As someone who does his politics in Yorkshire, I am very conscious that it is very often our settled ethnic communities who are themselves strongly supportive of tougher rules on immigration. This is not an easy subject. I often find myself talking to people whose parents or grandparents came from south Asia and who want to know when we are going to stop more people coming in. I have a vivid memory of the noble Lord, Lord Dholakia, and myself talking at the Hindu Cultural Centre in Bradford in the last election but one. The second question we had from the floor was: when are we going to stop more of these foreigners coming in? The noble Lord, Lord Liddle, understands that there are many difficulties in making a simple answer to the problems of immigration.

Noble Lords have already remarked that India is by now the third largest foreign investor in the UK. I believe the noble Lord, Lord Parekh, claimed that it is now the second largest. The UK is the fourth largest investor in India. We are attempting to encourage a rising flow in both directions. The enhanced partnership is, I stress, a partnership and it has to be a partnership of equals. We have to get rid of any sense that this is an ex-colonial relationship. As you will all know, the continued existence of the aid relationship with India has become a matter of some controversy in the right-wing press in Britain. It is our intention to move from an aid relationship concentrating on the four poorest states in India where—as the noble Lord, Lord Liddle, has remarked—there are still a great many extremely poor people, into a partnership with an Indian government which now has its own steadily increasing aid programme, so that we can share our experience in Africa and elsewhere with the Indians as they come in. That is a pattern which we see ourselves using across the board.

The noble Lord, Lord Giddens, has, to my great pleasure, mentioned that we already have a very useful partnership with Indian scientists and others in climate change and that has been invaluable in getting the global debate on climate change under way—not as the white countries telling others what to do, but as a shared concern about long-term environmental degradation.

The defence partnership is, at the moment, less developed than we would like it to be, although we find ourselves sharing the anti-piracy patrol with Indian ships off Somalia in the Indian Ocean. The Indians are now the largest single contributor to UN peacekeeping forces, so as a country which expects that its forces are most likely to be engaged in helping to reconstruct failed states—post-conflict reconstruction—we will very often find ourselves alongside forces from south Asia. We already have a number of officer exchanges on both sides, and again there are traditions on which to build. I was astonished and delighted to find myself at the National Defence College in Pune, sitting next to an Indian general who told me that his regiment was called Skinner’s Horse. I did not know they still had regiments like that in the Indian Army. We see ourselves moving towards future joint training, and I hope also to greater celebration of the past. That is because our young generation in this country, including the children of Asian immigrants, have forgotten that the largest single Commonwealth contingent in the Second World War came from the Asian sub-continent in the form of the Indian Army.

Many noble Lords have talked about the importance of universities and education. Already much effort is being made. The second tranche of the UK-India Education and Research Initiative is under way. Research Councils UK is working to improve collaboration at the highest levels, and I know that the noble Lord, Lord Parekh, knows what the British Academy is doing in this regard. I regret that student flows are not larger. My former university, the London School of Economics, has developed a number of joint degrees with Chinese universities, but it has been much more difficult to get into partnerships with Indian universities. We need to move further on this. We hope very much that the Indian Government will now complete the passage of the law which would allow foreign universities to set up campuses on the Indian sub-continent. It is a way of trying to increase the two-way flow, and I should mention that the Department for Education and others are hoping to encourage more British students to study at Indian universities. After all, India has some top quality universities. I can speak with some feeling on this since some years ago my son led the British “University Challenge” team that played the winner of the Indian equivalent and was soundly beaten in Delhi.

On visas, I have already mentioned that the situation is extremely complex and we are faced with a British population which has a range of contradictory pressures. However, we are aware of Indian concerns and are doing our best to meet them. On economic relations, many noble Lords have remarked that there is a great deal of good news on the way, but we need the Indians to open their market for services. The United Kingdom is above all a service exporter. Insurance, banking, legal expertise and accountancy are areas where we have the strength to compete much more effectively in the Indian market. We see the EU-India free trade area, which is still under negotiation and we hope will be completed in the next few months, as a major step forward.

I should like to end where I began by saying that the strength of the UK-Indian relationship lies in our historical ties and in the personal ties which the largest diaspora community in this country provides. It is economically successful in this country and the loyal links that people still have with India help to build economic ties in everything from the brewing industry to the pharmaceutical industry. We look to that as one of the many strengths we can pursue further in building a stronger relationship. Again, I thank the noble Lord, Lord Parekh, for allowing us to return to this subject, and I hope that we will consider it again soon.