FM Nirmala Sitharaman Meets UK PM Keir Starmer, Chancellor Reeves to Boost India-UK Economic Ties and FTA Talks
BN Desk
London, April 9: In a significant diplomatic engagement ahead of the 13th UK-India Economic and Financial Dialogue (EFD), Union Finance Minister Nirmala Sitharaman held key discussions with British Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves on Wednesday. The high-level meetings were aimed at strengthening bilateral economic cooperation and accelerating progress on the much-anticipated India-UK Free Trade Agreement (FTA).
Finance Minister Sitharaman was formally received by Chancellor Reeves at her official residence and office at 11 Downing Street, underscoring the importance attached by the UK government to bolstering ties with India. The series of meetings comes at a crucial time as both nations seek to expand trade, investment, and financial cooperation in a rapidly changing global economic landscape.
A central topic of the discussion was the India-UK FTA, which has been under negotiation for over two years. The deal, once finalized, is expected to significantly boost the existing bilateral trade relationship, valued at approximately GBP 41 billion in 2024. The Starmer-led Labour government has shown renewed interest in concluding the agreement after it was briefly paused to accommodate election cycles in both countries.
Speaking to media ahead of the EFD, Sitharaman emphasized key areas of cooperation that would feature in the dialogue. These include closer ties between financial sectors, enhanced collaboration in education, including efforts to facilitate UK universities’ entry into India, and mutual recognition of professional qualifications, a move expected to improve mobility and workforce integration across borders.
“There is immense potential in science and technology collaboration,” Sitharaman said, noting that the UK holds a premier position in global research and innovation, and India looks forward to productive joint ventures in this domain.
According to the Ministry of Finance, the EFD serves as a robust platform for comprehensive dialogue on a wide range of financial matters. These include investments, financial services and regulations, UPI interlinkages, taxation, and the prevention of illicit financial flows. The Indian side has prioritized cooperation in sectors such as the International Financial Services Centre (IFSC) at GIFT City, insurance and pensions, fintech and digital economy, and strategies for mobilizing sustainable and affordable climate finance.
From the UK’s perspective, Chancellor Rachel Reeves, in a pre-dialogue statement, stressed that job creation, global economic challenges, and securing a new trade deal with India are key objectives of the EFD. “We are committed to exploring how both nations can unlock potential across multiple sectors, including defence, in line with our government’s Plan for Change,” Reeves stated.
The meetings also reflected mutual political will to elevate the India-UK strategic partnership to a new level, particularly in a post-Brexit context where the UK is actively seeking diversified trade partners. Sitharaman, speaking at an event in London a day earlier, praised the UK’s “great deal of enthusiasm” regarding the FTA and expressed optimism about the deal being concluded “sooner rather than later.”
As both countries prepare to usher in a new phase of economic engagement, the outcomes of these high-level dialogues are expected to lay the foundation for a more resilient and future-ready economic partnership, one that is deeply aligned with shared priorities such as digital innovation, sustainable growth, and inclusive development.
