LONDON, April 9 – Countries are increasingly turning to bilateral arrangements over multilateral frameworks amid rising global uncertainties and a more fragmented world order, Indian Finance Minister Nirmala Sitharaman said on Tuesday during her visit to the United Kingdom.
Speaking at a discussion at the Indian High Commission in London alongside LSE economist Nicholas Stern and BJP leader N.K. Singh, Sitharaman cited a “multipolar world” and the ineffectiveness of global institutions as the key reasons behind the growing preference for bilateral deals.
“Global uncertainties — the imponderables — are multiplying by the day,” she said. “It is simpler and more effective to look at these challenges through a bilateral lens.”
Her comments come amid a wave of new U.S. tariffs, including a 26% duty on Indian exports and a 10% tariff on U.K. goods, announced by U.S. President Donald Trump on April 2. However, Sitharaman dismissed speculation that the new tariffs were accelerating negotiations for an India-U.K. free trade agreement (FTA).
“We are not rushing into a U.K. FTA because something has developed from the U.S.,” she said, noting that trade talks had been ongoing for some time, including under the previous Conservative government. With the new Labour administration under Prime Minister Keir Starmer expressing support for the deal, Sitharaman said she hoped the FTA could be concluded “sooner rather than later.”
Sitharaman is in London to co-chair the 13th India-U.K. Economic and Financial Dialogue (EFD) with British Chancellor Rachel Reeves. The two sides are expected to discuss a range of topics including a bilateral investment agreement, mutual recognition of professional qualifications, and greater collaboration in education and research.
The Minister also held talks with insurance firm Prudential PLC’s chair Shriti Vadera, pitching India’s GIFT City—an emerging financial hub in Ahmedabad—as a prime destination for financial services investment. She urged Prudential to consider operations in the International Financial Services Centre (IFSC) located within the GIFT City Special Economic Zone.
On education, Sitharaman said both governments are exploring pathways for U.K. universities to establish campuses in India under the country’s National Education Policy. Institutions such as Queen’s University Belfast and the University of Surrey are already eyeing opportunities to launch programs in GIFT City, while others like the University of Southampton have set up campuses in India.
Sitharaman acknowledged the U.K. had lost some ground to the U.S. in attracting Indian students in recent years but said efforts were underway to reverse that trend. “That momentum will have to be regained,” she added.
The Minister will also meet City of London officials and attend a dinner hosted by Chancellor Reeves, which U.K. Prime Minister Keir Starmer may attend, according to sources familiar with the arrangements.
