‘There Is An Opportunity For Free Trade Agreement’
In an exclusive interview to Taniya Tikoo, Sir Dominic Asquith KCMG, British High Commissioner to India, speaks on the growing Indo-UK trade relationships, prospects of FTA, ways to further enhance the bilateral relationships and more.
Edited excerpts:
Britain will be able to increase its exports to India by more than £2 billion per year after Brexit. Is Brexit the answer behind strengthened Indo-UK trade relationship?
We look at India as the most important relationship so in the context of Brexit, I think there is some misperception behind it; for us Brexit is an opportunity to develop the market, not just European market but to develop further in a dynamic way.
Due to the strength of our relationship, Theresa May’s first visit outside European Union was India. The two prime minister in November discussed possible economical relationships.
Would there be possibility of a Free Trade Agreement (FTA)?
We are looking at how to enhance agreement, it may happen after Brexit. Yes, there is an opportunity for free trade agreement. UK is the largest G20 Investor in India, while India is the fourth largest investor in UK.
Would you say post Brexit, UK companies will have as much investment in India to create a job market as India has in UK at the moment? Will it be a role reversal of the jobs that Indian companies are providing in UK at the moment?
No, there is no role reversal. This is a true collaborative relationship with benefits to both side. I believe this is possible and necessary. I don’t see any role reversal. Even if you go back 70 years, British companies did follow ‘Make in India’ and are still doing the same. The British Company JCB, exports from its Indian base to 65 countries. We also look at India’s future need as India has extraordinary future plans for building infrastructure and for that they will have to raise foreign capital and the best way to raise foreign capital is in London as the international investors are available here and that’s why 85 per cent of Bonds are raised/ issued in London.
There has been a dip in the number of Indian students going to U.K., especially because of lack of work opportunities? What can be done at your end to make UK more friendly for Indian students?
It’s a complex subject. Let me see if I can rephrase it. If you look at 2009-10 till now the students figures have dropped, there are no questions about that. Seven years ago, out of the Indian students who went to UK, 50 per cent went for Universities and rest 50 per cent for Colleges. We found out that many colleges were bogus and were not providing proper education so we abolished a lot of them. Today, the figure is half, as you say, and the figures of Indian students is stable.
The good news is that the number is growing this year in comparison to last year. The value of British education for Indian students is very high. UK has the second largest number of foreign students in the world after the US. We welcome a lot of students to come to UK for studies. I would like more Indian students to come. The success rate of Indian students application is above 90 per cent that is the figure which is rising from the past. There is no cap or ceiling.
Do you think the extradition process of Vijay Mallaya is taking longer than usual?
You have to be very careful about this subject. There is an administrative division and judiciary division in the government. Extradition is a judiciary process so I am not going to get into this.
Do you believe that the prolonged uncertainty about Brexit has impacted trade relationship between both countries?
We don’t see this at all. If you look at the exports during 2015-16, it scaled up by six per cent. This indicates the confidence in the UK regulatory bodies, workforce freedom and business friendly environment.
What is your stand on Indo-China conflict?
We look forward to seeing the two sides involved resolving it peacefully. We are not invited by either sides to intervene but I welcome what happened this week. It’s a very positive outcome and this proves diplomatic channels are the best way to resolve conflicts.
