The 13th UK-India Economic and Financial Dialogue (EFD), held during the recent visit of India’s Finance Minister Nirmala Sitharaman marked a significant advance in the strengthening of bilateral ties, with both nations reaffirming their commitments to finalising a Free Trade Agreement (FTA) and a Bilateral Investment Treaty. While negotiations are ongoing, the two sides highlighted that considerable progress has been made with broad areas of agreement, and mutual resolve to bring the deal to a close.
Nirmala Sitharaman also held talks with British Prime Minister Keir Starmer and Chancellor Rachel Reeves, who received the Finance Minister at her 11 Downing Street office here. Progress of the India-UK FTA negotiations were among the topics on the agenda of this meeting as well, which came ahead of the EFD.
The EFD saw the announcement of trade and investment deals worth over £400 million — a package expected to boost economic growth, strengthen resilience, and open new opportunities for British businesses and workers.
At the EFD, Chancellor Rachel Reeves and Business and Trade Secretary Jonathan Reynolds met with India’s Finance Minister Nirmala Sitharaman to deepen cooperation between the two countries. The discussions mark a significant step forward in the UK's ambition to secure an ambitious FTA and Bilateral Investment Treaty with India.
Chancellor Reeves emphasised the importance of global trade in supporting the government’s "Plan for Change", stating, "In a changing world, we must go further and faster to kickstart economic growth. We’ve listened to British businesses, which is why we’re pursuing trade deals, including with India, so we can support them and put more money in people’s pockets."
The dialogue resulted in a joint statement outlining new collaborations in defence, financial services, education, and development. The UK government reaffirmed its goal to position Britain as the world’s best place to do business, offering economic stability, an open trading environment, and conditions favourable to investment.
“We are not waiting for an FTA to boost trade”
Chancellor Reeves confirmed that while the UK and India remain committed to securing an ambitious trade deal, both countries are already seeing significant trade and investment flows.
“We were very pleased to restart the FTA negotiations in February, and our teams have been working well together. We very much hope to secure a deal, but you can see from today’s announcements that we’re not waiting for an FTA to boost trade and investment,” Reeves said. She highlighted the recent wave of investment from Indian companies into the UK and vice versa, calling it a clear sign of the partnership’s momentum.
“We are determined to continue building a stronger trading relationship, and the outcomes of today’s dialogue reflect real progress,” she added.
Finance Minister Sitharaman emphasised that India’s partnership with the UK, built over decades, is playing a crucial role in navigating global economic headwinds.
“This dialogue is not new — we’ve been participating annually, and it has consistently led to productive exchanges between regulators and policymakers, helping us identify ways to strengthen investment ties,” she said.
Both Reeves and Sitharaman stressed the shared ambition to finalise a trade agreement that would reflect the growing economic relationship between the two countries. “This will be an ambitious FTA,” Reeves said, “and both the Prime Minister and I conveyed to Minister Sitharaman our determination to see it concluded. Trade and investment are key pillars of economic growth, and both governments are eager to advance this partnership.”
Sitharaman echoed that sentiment, highlighting that the ongoing negotiations, which have now seen 15 rounds, are approaching the final stretch.
“There’s a strong desire on both sides to conclude this and the discussions, especially around the investment treaty, show that we are moving in the right direction,” Sitharaman said.
Indian students and investments remain a priority
When asked about concerns over Indian capital and wealthy individuals reconsidering their ties to the UK following tax changes, Reeves reiterated the UK's commitment to welcoming Indian businesses and students.
“Our universities benefit enormously from Indian students, and the economic dialogue has paved the way for more UK university campuses in India, offering students more options while strengthening academic ties,” she said.
On taxation and financial stability, Reeves stressed the need for difficult decisions to stabilise public finances, citing the UK’s fiscal rules and the existing bilateral taxation treaty with India, which offers safeguards for Indian investors.
Sitharaman, on the other hand, highlighted that the UK-India dialogue has delivered tangible benefits, including stronger regulatory collaboration, smoother FDI pathways, and new investment opportunities. She also acknowledged the resilience of the Indian economy, stating, “India’s growth is primarily driven by domestic demand. Even as we engage internationally, our focus remains on maintaining the strength of domestic consumption, which will sustain our growth trajectory.”
She concluded on a confident note, expressing optimism that the long-standing India-UK partnership, strengthened through structured dialogue and mutual respect, will continue to unlock growth and investment opportunities for both nations.
Enhancing collaboration and connectivity
At the London Stock Exchange, both sides announced plans to deepen cooperation in financial services, tax policy, industrial strategy, sustainable finance, and efforts to combat illicit finance.
The UK welcomed India’s efforts to enable international listings for Indian companies and potential listings on the London Stock Exchange. In support of this, the India-UK Financial Partnership released its report Catalysing Bilateral Growth: Connecting India and the UK’s Equity Capital Markets, offering recommendations to enhance capital flows and deepen financial integration.
The EFD also highlighted new opportunities in education and sustainability. Coventry University is set to become the first English university licensed to open a campus in India’s GIFT City. The London School of Economics announced the continuation of its partnership with Tata Trusts, which will fund scholarships for Indian students.
Alongside the dialogue, Secretary Jonathan Reynolds and Minister Sitharaman hosted a roundtable with leaders from key financial and professional services companies, including HSBC, Aviva, Vodafone, WNS, and Tide. The discussion reinforced the shared ambition to secure an ambitious trade deal and deepen commercial ties.
On defence, the two sides confirmed progress on finalising the India-UK Defence Industrial Roadmap, aimed at integrating supply chains and strengthening industrial partnerships.
Commenting on the outcome, Jonathan Reynolds said, "Both the UK and India are committed to securing economic growth and giving businesses the confidence and stability they need to expand. That’s why we are continuing negotiations toward an ambitious trade deal that unlocks new opportunities for British businesses."
With bilateral trade exceeding £40 billion last year, the UK and India’s relationship continues to evolve across financial services, technology, education, defence, and green growth, laying the groundwork for future prosperity and global cooperation.
Major Business Announcements
A commercial package worth £128 million in new export deals and investments was announced, alongside previously secured deals worth £271 million. Notable highlights include:
- Paytm, India’s largest digital payment app, will invest in the UK to enhance access to affordable digital payments for small businesses.
- Barclays Bank PLC India will inject over £210 million into its Indian operations to expand its investment and private banking services.
- HSBC will expand its presence in India from 14 to 34 cities, reaching around 95% of India’s wealth market.
- Standard Chartered Bank has moved into larger offices at India’s GIFT City, reinforcing its commitment to the country’s growing financial ecosystem.
- Mphasis, a leading Indian tech company, will open a Quantum Centre of Excellence in London and explore setting up a new office in Nottingham, creating 100 jobs.
- British International Investment (BII) will invest $10 million in agritech startup Grow Indigo, supporting regenerative farming and a carbon credit programme in India.
- WNS will expand its London headquarters and launch an AI design hub to strengthen the UK’s digital talent ecosystem.
- Revolut is preparing to launch in India following authorisation by the Reserve Bank of India.
- Wise will open a new office in Hyderabad as part of its global expansion strategy.
- Prudential will establish its first fully owned global services hub in Bengaluru and a new health insurance joint venture in India.
- BII has committed an additional $15 million to support early-stage, inclusion-focused companies in India.
