India and UK Reaffirm Free Trade Deal, Strengthen Supply Chain Partnership

In the evolving global trade landscape, India and the UK have reiterated their dedication to enhancing the bilateral ties between the two countries, which includes accelerating negotiations for a mutually advantageous Free Trade Agreement (FTA) and Bilateral Investment Treaty (BIT).

This was the main result of the '13th Economic and Financial Dialogue' held in London, co-chaired by Union Finance Minister Nirmala Sitharaman and Rachel Reeves, UK Chancellor of the Exchequer.

“The UK side was pleased to update on its forthcoming Industrial Strategy, where partnership can support the Industrial Strategy’s priority growth-driving sectors, such as advanced manufacturing and life sciences, where UK expertise and research capability can complement India’s emerging role as a global manufacturing hub, as well as in clean energy, professional and business services, financial services, the creative industries, and defence to support jobs and economic growth,” according too a join statement issued after the event.

Both parties anticipate the signing of the ‘India-UK Defence Industrial Roadmap’ to enhance connections between industrial sectors and bolster supply chains. India and the UK have also embraced the financial services trade in recent years and are committed to collaborating to expand it further.

“We agreed that the UK asset management sector can complement the UK-India Infrastructure Financing Bridge and support increasing opportunities for Indian investors to access global funds. Both sides agree to work together on a supportive policy framework and to use the next Financial Markets Dialogue to discuss this further,” according to the joint statement.

The UK and India acknowledged the significance of transition finance in raising capital to foster sustainable development. Both parties acknowledged each other’s efforts on this matter, including the Transition Finance Market Review commissioned by the UK government.

“We have a shared ambition to ensure economic stability, increase investment, and reform our economies to drive growth and prosperity across both our countries. We celebrate our strong economic partnership, with bilateral trade valued at over 40 billion pounds and significant foreign direct investment stocks in both directions,” said the statement.