Finance Minister Nirmala Sitharaman will begin a three-day visit to London on Tuesday to engage in crucial discussions on economic cooperation between India and the UK, focusing on the bilateral investment treaty (BIT) and the ongoing negotiations for a free trade agreement (FTA).

During her visit, she will participate in the India-UK Economic and Financial Dialogue, where key issues such as market access for goods and services, financial regulations, and dispute resolution mechanisms will be on the agenda.

While FTA negotiations fall under the Union Commerce Ministry, Sitharaman’s visit will focus on aspects overseen by the Finance Ministry, including investment treaty frameworks and financial services.

The bilateral investment treaty, aimed at providing greater protection for investors from both countries, remains a point of contention—particularly on the dispute resolution clause. India is firm that foreign investors must first exhaust domestic legal options before turning to international arbitration.

Negotiations for the FTA resumed recently after an eight-month pause, and this visit is seen as an effort to push forward on unresolved issues. The talks began in January 2022 and have gone through 14 rounds so far.

Bilateral trade between India and the UK saw a steady rise in 2023–24, reaching $21.34 billion, compared to $20.36 billion in the previous year. The UK remains one of India’s top foreign investors, contributing $35.3 billion in FDI between April 2000 and September 2024.

This high-level engagement reflects the growing economic cooperation and the shared intent to finalize a comprehensive trade agreement that strengthens bilateral relations further.