FM Nirmala Sitharaman to visit London from April 8-10; FTA talks may figure in meetings

Issues pertaining to the proposed free trade agreement (FTA) and bilateral investment treaty between India and the UK are expected to figure during the three-day visit of Finance Minister Nirmala Sitharaman to London from April 8-10, official sources said.

The minister would be attending a host of meetings, including India-United Kingdom Economic and Financial Dialogue, in London. Sitharaman is likely to hold a bilateral meeting with UK's Chancellor of the Exchequer Rachel Reeves and other British ministers.

"Issues pertaining to the trade agreement and bilateral investment treaty (BIT) may also come up for discussions between the two," the official said.

On February 24, Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Jonathan Reynolds announced resumption of negotiations for the proposed FTA between the two countries.

The India-UK negotiations are resuming after a gap of over eight months. The talks were launched on January 13, 2022. So far 14 rounds of talks have been completed. The two countries are actively negotiating on three different fronts - FTA, a bilateral investment treaty (BIT), and a Double Contribution Convention Agreement.

In the BIT, the sticking point between the two nations is with regard to the resolution of disputes. In the trade agreement, India is looking for greater access for its students and professionals in the UK market, besides market access for several goods at nil customs duty.

On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.

Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services, including banking and insurance.

The bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24 from USD 20.36 billion in 2022-23. Britain is the sixth-largest investor in India. The country received USD 35.3 billion in FDI between April 2000 and September 2024.

The talks may get a boost as India has announced to raise the foreign direct investment cap in the insurance sector to 100 per cent from the existing 74 per cent.