New Delhi, March 31 (PTI) Finance Minister Nirmala Sitharaman's three-day visit to London from April 8-10 is expected to include discussions about the proposed free trade agreement (FTA) and bilateral investment treaty between India and the UK, according to official sources.
The minister was scheduled to attend a number of meetings in London, including the India-United Kingdom Economic and Financial Dialogue.
Sitharaman is expected to meet bilaterally with UK Chancellor of the Exchequer Rachel Reeves along with other ministers.
According to a government official, "the two may also discuss issues related to the bilateral investment treaty (BIT) and trade agreement."
On February 24, UK Secretary of State for Business and Trade Jonathan Reynolds and Commerce and Industry Minister Piyush Goyal announced the start of new talks for the proposed bilateral free trade agreement.
After more than eight months, India-UK negotiations have resumed. The talks began on January 13, 2022. So far, 14 rounds of talks have been completed.
The two countries are currently negotiating on three fronts: an FTA, a bilateral investment treaty (BIT), and a Double Contribution Convention Agreement.
The BIT's main source of contention between the two countries is dispute resolution.
India wants more access to the UK market for its professionals and students, as well as free customs duty on a variety of goods, according to the trade agreement.
In contrast, the UK is asking for a large cut in import taxes on lamb meat, chocolates, electric cars, scotch whiskey, and some confections.
Additionally, the UK is seeking to expand its market share in India, especially in the areas of telecommunications, law, and financial services like banking and insurance.
Bilateral trade between India and the UK increased to USD 21.34 billion in 2023-24, up from USD 20.36 billion in 2022-23. Britain is India's sixth largest investor. The country received USD 35.3 billion in foreign direct investment between April 2000 and September 2024.
The talks may be boosted by India's announcement to raise the foreign direct investment cap in the insurance sector to 100% from the current 74%.
