Bilateral deals on the rise amid global uncertainty: FM Sitharaman in London

Union Finance Minister Nirmala Sitharaman has emphasised the growing global shift towards bilateral economic and trade arrangements, highlighting the limitations of multilateral institutions in a rapidly changing geopolitical environment. Speaking at an event at the Indian High Commission in London, the FM was part of a panel discussion alongside LSE Professor Nicholas Stern and BJP leader NK Singh.“The world is becoming increasingly multipolar and fragmented,” Sitharaman noted. “Global uncertainties — the imponderables — are multiplying by the day. It is becoming nearly impossible for countries to accommodate all of them in their policies.”

As a result, she said, nations are leaning towards bilateral arrangements, which offer more agility and alignment of strategic and economic interests. “When bilateral arrangements are being made, ideological or bloc-related affiliations no longer hold,” she added. “Bilateral trade and strategic agreements are becoming the norm.”
Sitharaman stressed that bilateralism will remain a dominant trend until multilateral institutions are revitalised and “able to speak with a certain voice”.India-UK FTA talks unrelated to US tariffs

Addressing the impact of recent global developments, the FM responded to questions about whether US President Donald Trump’s April 2 announcement of tariffs on exports from India and the UK—26% and 10%, respectively—were pushing both nations to accelerate their free trade agreement (FTA) negotiations.

She clarified that the ongoing India-UK FTA talks were independent of the US move. “We are not rushing into a UK FTA because of US tariffs,” she said. “This deal was always on the table. We’ve been in discussions for a long time, even during the Conservative government’s tenure.”

With the Labour government under UK Prime Minister Keir Starmer now also showing strong interest in concluding the pact, Sitharaman expressed optimism. “We hope to finalise it sooner rather than later,” she said.