“In a rapidly evolving, multipolar world, countries are increasingly leaning on bilateral arrangements due to the growing ineffectiveness of multilateral institutions”, India’s Finance Minister Nirmala Sitharaman said in London where she has arrived for the 13th India-UK Economic and Financial Dialogue (EFD) with her British counterpart, Chancellor Rachel Reeves.
The Indian Union Minister for Finance and Corporate Affairs said this as she delivered the inaugural address during a fireside chat on the ‘Opportunities and challenges for India’s quest to become a developed economy by 2047’, at India House, London.
The chat was moderated by Lord Nicholas Stern, Professor of Economics and Government and Chair of the Grantham Research Institute, LSE and BJP leader NK Singh was also present. Sitharaman highlighted how global uncertainties are pushing nations to forge direct partnerships.
“Global imponderables are multiplying by the day,” she noted, arguing that navigating these uncertainties through bilateral channels is proving more practical than relying on multilateral forums. In this emerging landscape, ideological affiliations and traditional blocs are becoming less relevant, with economic and strategic interests driving bilateral deals forward.
Her comments came amid questions about the impact of recent US tariff hikes, announced by President Donald Trump on April 2, on India-UK trade talks. The US has imposed new tariffs of 10% on UK exports and 26% on Indian goods.
However, Sitharaman denied that these tariffs were accelerating the trade negotiations between India and the UK. “This is not something we are rushing into because of developments in the US These talks have been ongoing for quite some time, even with previous UK governments,” she clarified. Still, with the new Labour government in the UK showing interest, she expressed optimism that a deal could be finalised “sooner rather than later.”
Alongside her dialogue with Chancellor Reeves, Sitharaman is also engaging with the City of London and its Lord Mayor. She is promoting GIFT City, India’s flagship financial hub in Ahmedabad, as a key destination for global financial services.
The bilateral dialogue also includes discussions on an investment treaty, mutual recognition of professional qualifications, and deeper cooperation in the education sector. Sitharaman revealed that India and the UK are exploring opportunities for British universities to set up campuses in India, while also increasing the number of Indian students in the UK.
Prior to her fireside chat at India House, she held meetings with Vindi Banga, Chairman of UK Government Investments (UKGI), and Shriti Vadera, Chair of Prudential PLC. She also engaged with Dame Patricia Hewitt, former UK Health Secretary and former Chair of the UK India Business Council. During her interaction with Ms Vadera, the Finance Minister encouraged Prudential to explore investment opportunities within GIFT City’s International Financial Services Centre.
Sitharaman was received at the Heathrow International Airport by HE Vikram Doraiswami, High Commissioner of India to the UK on April 7.
The Finance Minister will also interact with Prime Minister Keir Stamer as the later plans to join attend a dinner hosted by Sitharaman’s UK counterpart, Chancellor of the Exchequer, Rachel Reeves. Additionally, along with UK Secretary of State for Business and Trade Rt Hon Jonathan Reynolds, she will co-host the Roundtable in partnership with City of London, with top CEOs and senior management of prominent pension funds and asset managers in UK as participants.
Prior to her meeting with Sitharaman, Chancellor of the Exchequer Rachel Reeves said, “The Business Secretary and I are meeting with India’s Finance Minister, Nirmala Sitharaman, as part of our two nations’ Economic and Financial Dialogue as we seek to secure a new trade deal.
“We will be covering the topics of growth and global issues, as well as how we can unleash potential across various sectors and defence to create jobs, investment and trade opportunities, as part of the Government’s Plan for Change.”
