- People in the know would agree that the Indian economy is slowly but steadily inching upward over the last few decades attempting to position itself amongst the best. The present dispensation at the centre has time and again made its ambitions obvious to make the Indian economy breach $5 trillion in the not-too-distant future. Of course, the Indian nation is becoming increasingly aspirational due to the push accorded by no less than the Prime Minister himself. Make no mistake, India as a country is no longer associated with poor citizens, non-existent infrastructure, and non-performing governments of yore. To a great extent, those earlier representations have changed for good even though a few challenges continue to bog us.
PC: Anupama Bhargava CFP
- The Indian economy too has shown some heft over the years courtesy of huge market potentialities aided by spectacular demography. Market attractiveness does have a considerable bearing on foreign investors flocking to India on the assurances of the government’s ease of doing business. The pandemic did derail the best economies around the world and the Indian response to the crisis has been reassuring helping us sail through with less extensive damage. Alliances and agreements are being forged on the back of changing geopolitical and geostrategic necessities. Against this backdrop, the UK home secretary mentioning that an India-UK Free Trade Agreement cannot happen if it means more Indians in Britain is blatantly illogical as well as impractical.
- Of course, the statement was meant to cater to the nativist faction of British politics but goes against the tenet of present-day requirements. Right-wing populist politics everywhere targets immigrants, including in India, where many want to stop illegals forget how hugely India’s informal economy has benefited from migration. Indian immigrants, especially techies and business entrepreneurs, have essayed a defining role in several leading economies, and the UK is no exception. As such, the argument is just as misplaced in Britain. Mind you, the UK economy has been essentially stagnant and is now trying to cope with high inflation and a mauled currency, as well as possible recession. Remarkably, the labour market has remained tight despite this.
PC: Gary Howes
- According to a report by the UK’s Office of National Statistics, UK unemployment was at a near-historic low of 3.8% in the April-June quarter. However, the skills shortage is expected to lead to the wage-price spiral – wages go up because labour is scarce, so costs go up, so business raise prices – the last thing Britain needs as it battles soaring inflation. Therefore, getting Indians with different skill sets into this market is a win for Britain because it keeps wages down. Thus, if the UK insists on restrictive policies on migration, India should walk away as the former’s market by itself is not a big deal for Indian products. Finally, India needs to draw a line on the labour question for future negotiations with far bigger economic powers. We are no longer pushovers, you see.
