Finance minister Nirmala Sitharaman will be in London next week to take part in a host of meetings, including the India-United Kingdom Economic and Financial Dialogue, the visit assuming significance as it takes place at a time the two countries are in the midst of a discussion to seal a free trade agreement.

During her three-day trip, between April 8 and 10, Sitharaman is also likely to hold a bilateral meeting with UK’s Chancellor of the Exchequer Rachel Reeves and other British ministers.

“Issues pertaining to the trade agreement and bilateral investment treaty (BIT) may also come up for discussions between the two,” PTI reported, quoting an official.

The India-UK free trade agreement talks began on January 13, 2022, but faced an eight-month pause before resuming on February 24, 2024. So far, 14 rounds of negotiations have been completed. Along with the FTA, both nations are also negotiating a Bilateral Investment Treaty (BIT) and a Double Taxation Avoidance Agreement (DTAA).

On February 24, Union commerce minister Piyush Goyal and UK Secretary of state for business and trade Jonathan Reynolds announced resumption of negotiations for the proposed FTA between the two countries.

In the BIT, the sticking point between the two nations is with regard to the resolution of disputes. In the trade agreement, India is looking for greater access for its students and professionals in the UK, besides market access for several goods at nil customs duty.

On the other hand, the UK is seeking a significant cut in import duties on goods such as Scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionery items.

Britain is also looking for more opportunities for UK services in Indian markets in segments such as telecommunications, legal and financial services, including banking and insurance. The bilateral trade between India and the UK increased to $21.34 billion in 2023-24 from $20.36 billion in 2022-23.