India and the United Kingdom are progressing towards the finalization of a Free Trade Agreement (FTA), with both parties expressing willingness to expedite discussions, according to Union Finance Minister Nirmala Sitharaman and UK Chancellor Jeremy Hunt. The two officials held discussions on Monday, as part of the 12th India-UK Economic and Financial Dialogue.
The negotiations for the FTA are being conducted parallel to the goods and services trade negotiations. "We will be looking at points where there are convergences and if there are points on which we have to have further discussions, we will hold it. The keenness on both the sides is to conclude it as soon as possible," Sitharaman told reporters.
Hunt echoed Sitharaman's sentiments, stating that the next step would be a comprehensive FTA and bilateral investment treaty. "I know discussions are ongoing as to how to finalize those as soon as possible," Hunt said.
These announcements come within 48 hours after Indian Prime Minister Narendra Modi and his British counterpart Rishi Sunak agreed during their bilateral meeting at the G20 Summit to work swiftly towards signing the much anticipated FTA.
In addition to the FTA, India is also exploring the possibility of direct listing of Indian companies at the London Stock Exchange (LSE). Hunt expressed satisfaction with this development, saying, "We are particularly pleased to have made a big step forward with the first confirmation by India that it will explore the London Stock Exchange as an international destination for the direct listing of Indian companies."
Furthermore, a new pensions and insurance partnership between India and the UK has been established, along with a mechanism for sharing knowledge and expertise. Both countries are encouraged by their intensified collaboration in financial services, according to Sitharaman.
The dialogue also saw the launch of the "new UK-India Infrastructure Financing Bridge." This collaborative venture, co-led by government think tank Niti Aayog and the City of London Corporation, aims to harness collective expertise in planning and implementing major infrastructure projects.
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