Rishi Sunak, the UK’s Chancellor of the Exchequer, is facing a conflict of interest row over his family’s financial stake in an Indian IT company, Infosys, amidst ongoing trade negotiations between the UK and India. MPs and trade experts are raising concerns about transparency and potential benefits that Sunak’s wife, Akshata Murty, could receive from a post-Brexit trade deal with India. Murty holds shares worth around £500 million in Infosys, making her a significant shareholder in the Bengaluru-based company.
The chair of the all-party House of Commons business and trade select committee, Darren Jones, has called for Sunak to be more open about his wife’s financial interests, particularly considering the potential benefits to Infosys from any trade agreement. Jones suggested that Sunak should recuse himself from the trade negotiations altogether. Sunak is expected to discuss the UK-India trade negotiations with Indian Prime Minister Narendra Modi during a bilateral meeting at the G20 summit in New Delhi.
Infosys, a major player in the IT services and consultancy industry, has previously had contracts with the British government and various UK companies. The company is reportedly seeking improved access to the UK for its contract workers through changes to the visa regime. This demand aligns with India’s push for more visas for its workers in sectors like IT and artificial intelligence. On the other hand, the UK is seeking to lower tariffs on exports to India, including goods such as Scotch whisky and cars.
The sensitivities surrounding the trade negotiations and Sunak’s involvement have led the Foreign Office (FCDO) to discourage the business and trade select committee from conducting a trip to India this autumn to examine potential deal-related issues. The FCDO has also indicated that it won’t assist the committee in setting up meetings with Indian officials and businesspeople. Despite these obstacles, the committee is considering going ahead with the trip to India.
The majority of Murty and Sunak’s wealth comes from Infosys, which was valued at around £50 billion in May. Murty’s father, Narayana Murthy, co-founded the company in 1981. Last year, it was estimated that the holding should have generated approximately £54 million in dividends over the past seven years, significantly boosting the Sunak family’s income.
This latest conflict of interest controversy follows a reprimand received by Prime Minister Boris Johnson from Parliament’s standards watchdog for failing to properly declare his wife’s shareholding in a childcare company. The company stood to benefit from government policy changes. Johnson now includes mention of the childcare company in the register of ministerial interests. However, Sunak currently doesn’t publicly declare his wife’s 0.94% holding in Infosys, although Downing Street insists that he declares it appropriately to the relevant authorities.
Experts and opposition politicians have emphasized the need for transparency in light of the ongoing trade negotiations with India. They argue that given the potential financial interest of Sunak’s family in any immigration-related deal, he should recuse himself from those specific aspects of the negotiations to avoid any perception of a conflict of interest.
In response, a government spokesperson stated that the prime minister and trade secretary are pursuing a trade deal with India in the best interests of the UK economy, and that the prime minister’s interests have been declared in accordance with existing processes.
The trade negotiations between the UK and India are attempting to balance multiple objectives, including improved market access for Indian IT companies like Infosys and reduced tariffs on UK exports to India. The prominence of Murty’s shareholding in Infosys raises questions about potential conflicts of interest and the need for transparency in the negotiation process.
