UK-India Trade
Debate between Virendra Sharma and Lord Willetts(12 years, 3 months ago)
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Mr Willetts
The British Government have a shared view, to which, of course, all Departments subscribe. Included in that, as I said, is the fact that there is no limit on the number of suitably qualified foreign students who can come to legitimate universities. However, I fully accept the challenge of communicating that effectively, given how the policy has sometimes been reported, not least in the Indian media. One reason why I have paid visits to India is to communicate as clearly as I can that there is no numerical limit on legitimate students coming to legitimate higher education institutions.
Mr Willetts
I am terribly sorry, but I have only five minutes left, and I have several other issues to touch on.
One issue raised by several Members involves the problems that a number of UK companies have experienced obtaining payment for goods and services provided during the Commonwealth games. Some UK companies, most notably SIS LIVE, are alleged to have been involved in instances of bribery, which they have strenuously denied. Several hon. Members have vouched for those companies in this debate. All those cases are being examined by the Indian Central Bureau of Investigation. Until that work is complete, we doubt that any resolution of the matter is possible. All the Commonwealth games cases have been handed over to a group of Indian Ministers, who will decide what needs to be done.
I assure hon. Members who have raised the matter that the British Government are energetically pursuing the concerns of British companies with the Indian Government. The high commissioner met the Indian Secretary for Home Affairs and followed up with a letter. Our Prime Minister has written to Prime Minister Singh about the outstanding payments, and Ministers and officials are working to resolve the outstanding issues. My right hon. Friend the Secretary of State for Culture, Olympics, Media and Sport has written to his Indian counterpart, the Minister for Sport, requesting that the investigation be expedited as quickly as possible. We remain very much engaged with the issue.
Mr Willetts
I apologise, but it has been a crowded debate. We understand the arguments made by my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) for more debates on these issues.
I was asked about the EU-India free trade agreement, including by the hon. Member for Hartlepool (Mr Wright). The UK has been one of the strongest supporters of the FTA since negotiations started. We believe that there is now a genuine prospect of concluding an ambitious agreement this year that will deliver significant benefits to UK business, with a potential value of £2 billion over 10 years. We now look forward to the EU-India summit in February, to which several Members have referred, and hope that progress will be made there.
We have made it clear throughout the negotiations that in order to conclude an agreement, it is essential for India to open up markets in key areas such as services, wines and spirits and the automotive sector, which the hon. Member for Solihull mentioned. India’s implementation of reform in single-brand retail is a positive sign, but we need more progress on services including multi-brand retail, banking and insurance.
Some Members asked what that will mean for migration. We expect the chapter on international trading services in the FTA to include provisions on the temporary movement of highly skilled professionals from India to the UK and from the UK to India. We recognise that a key element of the UK’s offer in trade negotiations is its willingness to admit temporarily to the EU highly skilled professionals under mode 4. However, any such measure must be consistent with our commitment to limit levels of economic migration to the UK. We expect the outcome of the negotiation with India to allow for the operation of minimum salary thresholds and wage parity testing. The Government are strongly committed to policy in that area.
In conclusion, the British Government absolutely agree with hon. Members from all parties about the importance of our relationship with India. That is why the Foreign Secretary has announced the expansion of our network across India, creating 30 new positions. It is a truly cross-Government effort. Our relationship is much wider than trade and investment; we co-operate closely with India on education, science and research. The UK India Education and Research Initiative has now reached a scale of £90 million, and I have launched improved research collaboration with India. We are also researching and working together on climate change and development. We have an increasing defence and security relationship, and we are working with India on international issues.
Despite the global downturn, India continues to enjoy rates of growth that are the envy of Europe and the US, with the north Atlantic problem to which an hon. Member referred. We will continue to work across Government and with the private sector, universities and our Indian friends. We want more UK companies to do business in India, and we welcome those opportunities.