Synopsis
India and the UK reaffirm their commitment to enhancing bilateral relations, focusing on the negotiation of a Free Trade Agreement (FTA) and a Bilateral Investment Treaty (BIT), as discussed during the 13th Economic and Financial Dialogue in London.Key Takeaways
- Commitment to Free Trade Agreement (FTA) and Bilateral Investment Treaty (BIT).
- Collaboration in advanced manufacturing and life sciences.
- Signing of the India-UK Defence Industrial Roadmap.
- Enhancement of financial services trade.
- Internationalization of the Indian rupee and support for sustainable finance.
New Delhi, April 10 (NationPress) In the midst of a shifting global trade landscape, India and the UK have reiterated their dedication to advancing bilateral relations, with a focus on expediting negotiations for a mutually advantageous Free Trade Agreement (FTA) and Bilateral Investment Treaty (BIT).
This commitment emerged from the ‘13th Economic and Financial Dialogue’ held in London, co-chaired by Union Finance Minister Nirmala Sitharaman and Rachel Reeves, Chancellor of the Exchequer, UK.
“The UK delegation expressed enthusiasm about its upcoming Industrial Strategy, highlighting sectors like advanced manufacturing and life sciences, where UK expertise can synergize with India’s growing status as a global manufacturing hub. Other areas of collaboration include clean energy, professional services, financial services, the creative industries, and defence, all aimed at fostering job creation and economic development,” as per a joint statement following the meeting.
Both nations are eager to finalize the ‘India-UK Defence Industrial Roadmap’ to fortify connections between their industrial sectors and enhance supply chains.
India and the UK also appreciated the growth in financial services trade over recent years and pledged to further develop this sector.
“The Financial Markets Dialogue (FMD) conducted in GIFT City IFSC, India, in December 2024, offered a platform to deepen collaboration in banking, insurance, pensions, capital markets, and sustainable finance. Our teams will reconvene for the next FMD in London later this year,” according to the joint statement.
The UK welcomed the green light given to insurance firms in GIFT IFSC for overseas investments and the proposal under review to allow pension companies in GIFT IFSC to invest abroad.
Both parties acknowledged the significant role UK bond markets could play in facilitating capital raising for Indian corporations, including through rupee-denominated Masala Bonds, and agreed to collaborate on creating a supportive policy environment to expand these opportunities.
Discussions also covered the potential for enhancing the internationalization of the Indian rupee, with both sides welcoming India’s initiative to allow the opening of rupee accounts in foreign jurisdictions. They agreed to explore London’s role as a global financial center in supporting the rupee’s internationalization.
“We agreed that the UK asset management sector can enhance the UK-India Infrastructure Financing Bridge and increase opportunities for Indian investors to access global funds. Both nations aim to work together on a supportive policy framework and utilize the next Financial Markets Dialogue to explore this further,” as noted in the joint statement.
The UK and India recognized the significance of transition finance in mobilizing capital for sustainable development and welcomed each other's efforts, including the UK government-initiated Transition Finance Market Review.
“We share a common goal of ensuring economic stability, boosting investment, and reforming our economies to promote growth and prosperity in both nations. We celebrate our robust economic partnership, with bilateral trade exceeding 40 billion pounds and substantial foreign direct investment between our countries,” stated the announcement.
