FM Sitharaman to Visit London for Economic and Financial Talks with UK Counterpart

By siliconindia  |  Tuesday, 01 April 2025, 09:05:26 AM IST

FM Sitharaman to Visit London for Economic and Financial Talks with UK Counterpart
Finance Minister Nirmala Sitharaman will travel to London between April 8-10 for top-level talks to enhance economic and trade relations between India and the United Kingdom. The visit will feature discussions under the India-United Kingdom Economic and Financial Dialogue (EFD), an important bilateral institutional framework promoting trade and investment cooperation.
Sitharaman will meet the UK Chancellor of the Exchequer, Rachel Reeves, during her visit to discuss important economic matters such as bilateral trade agreements and investment policies. It is possible that talks will also cover the Free Trade Agreement (FTA) negotiations and the Bilateral Investment Treaty (BIT) during her visit, said a senior official.
"The discussion is an opportunity to examine and improve trade and investment cooperation between the two countries. Market access, financial reforms, and regulatory issues are expected to be discussed", the official said.
The negotiations for the India-UK FTA, which had been restarted in February after a meeting between India's Commerce & Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds, are an important element of economic relations. Goyal asserted that although both parties are keen to progress, India would not be hasty about the deal. "We will have speed but not haste", he said, highlighting the necessity of a well-balanced deal.
The suggested FTA includes 26 chapters covering goods, services, investments, and intellectual property rights. The UK has been negotiating lower tariffs on items such as electric vehicles and Scotch whisky, while India has been insisting on eased visa rules for professionals in its service sector.
The India-UK Economic and Financial Dialogue is an organized engagement that deals with shared priorities like sustainable development, financial sector reforms, and bilateral trade policies. The third India-UK Financial Markets Dialogue was held between the two nations in December 2023 in GIFT City, Gujarat, where matters discussed included capital markets, insurance, fintech, and sustainable finance.
The economic tie between India and the UK has been increasing steadily. Bilateral trade, goods, and services totaled £36.3 billion in FY 2022-23, up by 34.2% compared to the last year. India's exports to the UK were £21.6 billion, and imports from the UK were £14.7 billion. India is now the UK's 12th largest trading partner, with a share of 2.1% of its total trade.
On the investment side, India continues to be a strong player in the UK economy, having made investments in 108 ventures and generated more than 7,500 employment opportunities in 2023-24. It is still the second-largest source of Foreign Direct Investment (FDI) in the UK after the United States. The reverse, however, is also true that the UK is the sixth-largest investor in India, with total FDI inflows valued at $35 billion since April 2000.
With ongoing negotiations for an FTA, the two countries look to establish a strong and trade-friendly economic landscape. Sitharaman's London visit is expected to reaffirm India's determination to further its economic engagement with the UK while working towards redressing core areas of interest in trade and investment policy.

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