What happened?
On 9 April 2025, Finance Minister Nirmala Sitharaman and UK Chancellor Rachel Reeves met in London for the 13th India-UK Economic and Financial Dialogue. The dialogue covered a wide range of economic engagements, with both sides reaffirming commitment to a comprehensive partnership built on mutual growth and financial stability. Key developments included progress on negotiations for a Free Trade Agreement and a Bilateral Investment Treaty, the strengthening of financial services trade, and enhanced regulatory cooperation through an Exchange of Letters between India’s IFSCA and the UK’s Financial Conduct Authority.
The two sides also endorsed greater collaboration in fintech, capital markets, pensions, and insurance. India’s move to allow overseas listings from GIFT City and the UK’s support for rupee-denominated Masala Bonds were highlighted. Further, both countries celebrated growing ties in green finance, with new initiatives under the Green Growth Equity Fund, and welcomed investments in clean energy projects by British International Investment.
Why it matters to India
The dialogue reflects India’s growing economic stature and its deepening engagement with global financial centres like London. Strengthening financial services trade and regulatory cooperation can enhance capital flows, support financial innovation, and boost access for Indian firms to global markets. Provisions to allow Indian companies to list in international jurisdictions, especially from GIFT City, and UK interest in Indian bonds and insurance reforms signal a maturing financial relationship.
The agreements in climate finance and infrastructure funding also position India to attract more green capital, supporting its net-zero ambitions. With collaboration on issues like fintech regulation, sustainable finance, and cross-border payment systems, the dialogue reinforces India’s strategy of integrating with global economic standards while promoting its own financial hubs and innovation ecosystems. Overall, it underscores India’s strategic use of bilateral dialogues to unlock investment and advance long-term development goals.