NEW DELHI: Union finance minister Nirmala Sitharaman and United Kingdom chancellor of exchequer Rachel Reeves on Wednesday reiterated the commitment of the two governments to strengthen ties between the two nations and said, both sides are “continuing negotiations at pace” towards a “mutually beneficial” free trade agreement (FTA) and bilateral investment treaty.
The finance ministers of the two countries met in London for the 13th Economic and Financial Dialogue (13th EFD) and reiterated their commitment to build a comprehensive and strategic partnership between the two countries, a finance ministry statement said.
A top official aware of India-UK free trade negotiations said the talks are on a fast-track.
India-UK FTA talks started on January 13, 2022 and initially moved quickly but later got stuck over key issues such as India’s high tariffs on automobiles and Scotch whiskies, apart from the British sensitivity over immigration issues. The two partners, however, resumed the FTA negotiations in February 2025 which was paused during the 14th round in May 2024 after a gap of eight months.
The Indian delegation in the 13th EFD comprises the country’s finance secretary and senior officers from the ministry of finance and Indian High Commission in London. Reserve Bank of India (RBI) governor Sanjay Malhotra also attended the meeting in virtual mode. The UK delegation included the governor of the Bank of England, economic secretary of treasury and senior officials of the UK.
Both sides reaffirmed their commitment to continue collaboration in financial services sector, fintech and digital economy and between the respective regulatory bodies; collaboration at bilateral and multilateral fora to address mutual and global economic issues including mobilising affordable finance and investment for low carbon economic growth, taxation matters and illicit financial flows.
The finance ministry statement said both sides also welcomed the recent announcement of UK universities establishing campus in India, release of report of the India-UK Financial Partnership (IUKFP) on direct listing in IFSC GIFT City, launching of new private sector workstream on green finance, under the auspices of the IUKFP and other new areas of focus.
The 13th EFD concluded with the adoption of the joint statement by the two ministers that noted the resolve of the two partners for “a shared ambition” to ensure economic stability, increase investment, and reform economies to drive growth and prosperity across both countries.
“We celebrate our strong economic partnership, with bilateral trade valued at over £40bn and significant foreign direct investment stocks in both directions,” the joint statement said.’’
Both sides also noted the potential for “greater internationalisation” of the Indian rupee, welcome India permitting the opening of rupee accounts in overseas jurisdictions, and agree to explore the role that London as a global financial centre and hub for foreign exchange can play in supporting the internationalisation of India’s currency, it said.
“Both sides look forward to exploring the opportunity for collaboration in pensions and insurance funds, recognising that greater international investment can lower the cost of capital, support domestic pensions and insurance needs, and drive shared economic growth,” it said.
