Reports Suggest Conflict of Interest for Rishi Sunak Regarding Wife Akshata Murthy's Infosys Shares in India-UK FTA Deal

28 Aug, 2023

Reports Suggest Conflict of Interest for Rishi Sunak Regarding Wife Akshata Murthy's Infosys Shares in India-UK FTA Deal

Rishi Sunak, the British Prime Minister, is facing a fresh conflict of interest just before his participation in the G20 summit in New Delhi this September. The issue revolves around his wife Akshata Murthy's ownership of Infosys shares, a major IT services company in Bengaluru valued at around £500 million. This poses transparency concerns in relation to a proposed free trade agreement (FTA) with India.

Labor, along with the chair of the House of Commons business and trade select committee, has called for greater transparency from Sunak regarding his wife's financial interests, as Infosys could potentially benefit significantly from any trade agreement with India. The chair of the committee suggested that Sunak should consider recusing himself from the trade negotiations altogether.

This development follows the resignation of former culture secretary Nadine Dorries, who was critical of Sunak. Sunak is scheduled to discuss the UK-India trade negotiations with Indian Prime Minister Narendra Modi during the G20 Summit.

Sunak had previously faced a situation where he inadvertently failed to declare his wife's shares in a company benefiting from government policy. This issue was resolved with an apology from Sunak.

Akshata Murthy's family company, Infosys, aims to enhance access to the UK for its contract workers through visa regime adjustments. Sunak and Murthy derive a significant portion of their wealth from Infosys.

Shadow trade secretary Nick Thomas-Symonds emphasized the need for transparency from Sunak in any trade deal with India to avoid conflicts of interest. Experts also highlighted the importance of addressing potential conflicts, given that the Prime Minister's family has a financial stake in the outcome.

Regarding the India-UK FTA, reports suggest that India is open to reducing tariffs on British goods, such as Scotch whisky and automobiles, in exchange for the UK lowering workers' taxes. India is also interested in establishing a social security agreement similar to those it has with other countries.

Recent bilateral talks between UK Business and Trade Secretary Kemi Badenoch and her Indian counterpart Piyush Goyal aimed to accelerate the India-UK FTA negotiations for a mutually beneficial outcome.