India and UK Strengthen Economic Ties with Free Trade Pact, Bolstering Global Supply Chains
India and the UK Strengthen Economic Ties, Eye Free Trade Agreement
In the midst of a shifting global trade landscape, India and the UK have reaffirmed their commitment to bolstering their bilateral relationship, including advancing negotiations towards a mutually beneficial Free Trade Agreement (FTA) and Bilateral Investment Treaty (BIT). This was the key takeaway from the 13th Economic and Financial Dialogue, co-chaired by Union Finance Minister Nirmala Sitharaman and Rachel Reeves, Chancellor of the Exchequer, UK.
The event saw both sides highlighting their shared ambition to drive economic growth, stability, and prosperity. The UK lauded India’s emerging role as a global manufacturing hub, particularly in advanced manufacturing and life sciences, and expressed enthusiasm for partnering with the nation to support key priority sectors. India, meanwhile, welcomed the UK’s forthcoming Industrial Strategy, which aims to boost growth-driving sectors such as clean energy and financial services.
The UK and India also welcomed the significant strides made in financial services trade over recent years, committing to further grow this sector. The countries will meet for the next Financial Markets Dialogue in London later this year, which will focus on deepening cooperation across banking, insurance, pensions, capital markets, and sustainable finance.
The dialogue also touched on the role of UK bond markets in supporting capital-raising for Indian corporates, including through rupee-denominated Masala Bonds. Both sides agree to work together to boost opportunities and create a supportive policy framework for expanding this further. Furthermore, the UK and India explored the potential for greater internationalization of the Indian rupee, with the UK welcoming India’s move to permit the opening of rupee accounts in overseas jurisdictions.
The countries recognized the importance of transition finance for mobilizing capital to support sustainable development, welcoming each other’s work on this issue. The UK and India also agreed to explore the role of London as a global financial centre and hub for foreign exchange in supporting the internationalization of India’s currency.
With bilateral trade valued at over £40 billion, the UK and India celebrate their strong economic partnership and shared ambitions, both countries looking to drive growth, prosperity, and economic stability.
Original Source: https://www.sentinelassam.com/more-news/business/india-and-uk-reaffirm-free-trade-agreement-support-supply-chains
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Publish Date: 2025-04-11 12:47:00
