UK Prime Minister Rishi Sunak and his wife Akshata Murty arrive at Indira Gandhi International Airport in Delhi, for an official visit ahead of the G20 Summit. Getty
UK Prime Minister Rishi Sunak and his wife Akshata Murty arrive at Indira Gandhi International Airport in Delhi, for an official visit ahead of the G20 Summit. Getty
UK Prime Minister Rishi Sunak and his wife Akshata Murty arrive at Indira Gandhi International Airport in Delhi, for an official visit ahead of the G20 Summit. Getty
UK Prime Minister Rishi Sunak and his wife Akshata Murty arrive at Indira Gandhi International Airport in Delhi, for an official visit ahead of the G20 Summit. Getty

India's 'son-in-law' Sunak makes historic visit


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British Prime minister Rishi Sunak arrived in India, a country that considers him a “son-in-law”, on Friday, ahead of this weekend’s G20 summit in New Delhi.

The Conservative Party leader, the first British prime minister of Indian descent, said he was "excited" to be visiting.

He is joined by his wife Akshata Murty, daughter of NR Narayana Murty, founder of Indian IT company Infosys and one of India's richest tech billionaires.

Mr Sunak, 43, was a regular visitor to the country before he became chancellor of the exchequer in 2020.

Speaking on a flight from London to New Delhi, he told reporters: “Of course, it is special. I'll be visiting a country that is very near and dear to me.

“I haven't been back for a few years. I was meant to go, actually, in 2020.

“We take our family typically in February half-term every year, and I got made chancellor right before and I didn't get to go with the rest of my family then, so I haven't been for a little while.”

Rishi Sunak and Akshata Murty are met at Indira Gandhi International Airport by India's Minister of State for Consumer Affairs Ashwini Kumar Choubey, UK High Commissioner to India Alex Ellis and other dignitaries. Getty Images
Rishi Sunak and Akshata Murty are met at Indira Gandhi International Airport by India's Minister of State for Consumer Affairs Ashwini Kumar Choubey, UK High Commissioner to India Alex Ellis and other dignitaries. Getty Images

Mr Sunak said the trip was “obviously special”.

“I saw somewhere that I was referred to as 'India's son-in-law', which I hope was meant affectionately,” he said.

“But look, I'm excited to be back. It is nice to have Akshata with me, as well.”

The MP for Richmond, Yorkshire, was born in Hampshire, southern England, to Indian migrant parents, a pharmacist mother and a GP father.

The Prime Minister has not shied away from talking about his Indian origins and love for cricket.

He has also spoken about his abstinence from beef on religious grounds as a devout Hindu.

“I am thoroughly British, this is my home and my country, but my cultural heritage is Indian,” he said in 2020.

During his time in New Delhi, Mr Sunak is scheduled to visit important Indian cultural and religious sites, with a trip to a Hindu temple planned during his three-day stay.

The UK and India are in discussions over a free trade deal.

Trade between the two nations is worth £36 billion ($44.9 billion) and in 2022 India was the UK’s sixth largest import market for services.

A representative for the Prime Minister described Mr Sunak’s trip to his ancestral homeland as a “historic moment”.

The sentiment echoed a congratulatory message Indian Prime Minister Narendra Modi sent to Mr Sunak after he succeeded Liz Truss last October.

Mr Modi referred to Mr Sunak as the “living bridge of UK Indians” and expressed hope the two could work together to “transform our historic ties into a modern partnership”.

Mr Sunak's entry into office gave rise to renewed hopes of trade pact with India, but a year on no deal is in sight.

The Prime Minister’s spokesman this week said negotiations were progressing well, a view shared by Indian officials.

Remarks made by Home Secretary Suella Braverman last year when she expressed “reservations” about relaxing immigration controls for Indians as part of any agreement were reported to have provoked an angry response from ministers and officials in New Delhi.

UK Foreign Secretary James Cleverly on Friday appeared to play down concerns that any agreement could involve the UK handing out more student visas.

“We've got to understand that trade deals are trade deals, not travel deals,” he told GB News.

“We have already got a very good relationship with India when it comes to students.

“Student numbers from India are up, but also visa applications in our existing visa system is up.

“India is a growing economy, it is increasingly going to be important economically, politically, diplomatically, in years to come and the fact that we've already got a good relationship … is fantastic.

“We're looking to build on that. And India is seeking to do a trade deal with us and us seek to do a trade deal with them for trade purposes, rather than anything else and the advantages of trade are self-evident.”

Mr Cleverly dismissed criticism of the slow progress towards a UK-India trade pact.

He emphasised the importance of ensuring the agreement right.

“Our trade negotiations with India have actually progressed much quicker than other trade negotiations, including the EU’s trade negotiations with India,” he told Sky News.

“We’ve always said we want to get the right trade deal with India because it is an incredibly important partner.”

Asked whether a much-anticipated agreement could happen before the next general election, expected next year, Mr Cleverly said: “Of course we want one and we seek to resolve it as quickly as possible as long as it is a properly mutually beneficial trade deal.”

He said that the government did not want to “rush it through”.

Climate will be a key focus of discussions at the G20 summit, Mr Cleverly said.

Mr Sunak will bring the topic up at the meeting with allies and “demonstrate how you can have economic growth and reduce carbon emissions” at the same time, the minister said.

Rishi Sunak's Indian relatives - in pictures

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

Updated: September 08, 2023, 10:45 AM