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FM Sitharaman to visit London today for key talks on bilateral investment treaty, FTA

IANS by IANS
April 8, 2025
in National
FM Sitharaman to visit London today for key talks on bilateral investment treaty, FTA
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New Delhi, April 8 (IANS) Finance Minister Nirmala Sitharaman will visit London for three days starting Tuesday to engage in high-level discussions on various economic matters, including a proposed free trade agreement (FTA) and a bilateral investment treaty (BIT) with the United Kingdom.

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The visit will also see her participating in the India-UK Economic and Financial Dialogue, where key issues like market access for goods and services, dispute resolution mechanisms, and financial services will be on the agenda.

While the negotiations for the FTA fall under the jurisdiction of the Union Commerce Ministry, matters relating to the investment treaty and financial services regulations fall under the purview of the Finance Ministry.

These discussions are especially important as the two countries continue to negotiate a comprehensive trade pact that is expected to bolster economic ties and enhance trade relations.

Despite significant progress in negotiations, several crucial aspects of the trade agreement remain unresolved, particularly regarding the BIT. The BIT aims to enhance protection for investments between India and the UK.

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However, one major point of contention is the dispute resolution mechanism. India insists that foreign investors must exhaust local judicial remedies before seeking international arbitration.

In recent months, the UK and India have resumed negotiations for the FTA after an eight-month hiatus.

The talks, which first began in January 2022, have so far resulted in 14 rounds of discussions.

Trade between the two nations saw a notable increase in 2023-24, with bilateral trade reaching $21.34 billion, up from $20.36 billion the previous year.

The UK remains one of the largest foreign investors in India, with a total of $35.3 billion in foreign direct investment between April 2000 and September 2024.

This three-day visit by FM Sitharaman highlights the increasing economic ties between India and the UK, aiming to address key issues to further enhance their trade relations.

–IANS

rs/

*Except for the headings & sub-headings, this story has not been edited by The enewstime.in and has been published from IANS feed.

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