UK Foreign Secretary Yvette Cooper visited New Delhi for her first official trip to India since assuming office, holding key meetings with Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar as both countries seek to deepen cooperation across trade, security and strategic sectors.

The visit comes at a significant time in India-UK relations, with both governments working toward the implementation of their recently concluded trade agreement while also expanding collaboration in areas such as technology, climate action, supply chains and regional security.

Focus on trade and strategic cooperation

During her engagements in New Delhi, Cooper discussed ways to strengthen the comprehensive strategic partnership between the two countries. Conversations also touched on accelerating the implementation of the India-UK trade agreement and enhancing economic cooperation.

Her visit followed recent discussions between Indian Commerce Minister Piyush Goyal and UK Business and Trade Secretary Peter Kyle regarding the rollout of the bilateral trade pact.

New initiatives announced

India and the UK also announced fresh cooperation initiatives during the visit, including the launch of a Critical Minerals Global Supply Chain Observatory aimed at strengthening collaboration on critical minerals and supply-chain resilience.

Officials described the initiative as an important step in expanding cooperation in emerging strategic sectors and supporting resilient global supply chains.

Addressing global challenges

Apart from bilateral issues, discussions covered wider global concerns, including regional stability, economic disruptions arising from international conflicts and maritime security. The visit reflects the growing importance both countries attach to their strategic partnership amid evolving geopolitical challenges.

India and the UK have increasingly broadened cooperation across defence, technology, innovation, clean energy and people-to-people ties, with both sides aiming to further strengthen engagement in the coming years.

Fact-check assessment

The core angle—Yvette Cooper’s first official visit to India, meetings with PM Modi and S. Jaishankar, focus on trade, security, strategic cooperation and the launch of new bilateral initiatives—is supported by multiple current reports and appears factually sound.

India is considering a set of measures aimed at attracting more foreign investment as the ongoing Iran war continues to create pressure on the country’s economy, according to reports citing government sources. One of the key proposals under discussion is the removal of capital gains tax on investments made by foreign portfolio investors (FPIs) in government securities.

The move comes at a time when geopolitical tensions in West Asia have pushed up global oil prices, weakened investor sentiment and increased pressure on the Indian rupee. India, which imports a significant share of its crude oil requirements, has been among the countries closely monitoring the economic fallout from the conflict.

Government exploring ways to boost capital inflows

Officials are reportedly evaluating tax-related incentives to make Indian debt markets more attractive to overseas investors. The proposed exemption on capital gains from government securities is aimed at encouraging foreign portfolio investment and supporting capital inflows during a period of heightened global uncertainty.

The government is seeking to counter the impact of foreign capital outflows that have intensified amid concerns over the Iran conflict and its implications for energy markets and global economic growth.

Rupee and markets under pressure

Recent weeks have seen increased volatility in financial markets, with foreign investors pulling money out of Indian equities. Analysts have linked part of the pressure on the rupee to rising oil prices and continued overseas investor withdrawals.

Market participants believe that measures aimed at attracting foreign investment into government securities could help improve investor confidence and provide support to the domestic currency.

Broader economic concerns

The Iran war has added to concerns about inflation, economic growth and India’s external sector. Higher energy prices can increase import costs and put pressure on inflation, while sustained foreign capital outflows may affect financial market stability.

While no final decision has been announced, discussions on easing tax rules for foreign investors reflect the government’s efforts to strengthen capital inflows and cushion the economy from external shocks.

The United States has proposed imposing additional tariffs on imports from India and 59 other economies after concluding that these countries have not taken sufficient steps to prevent the importation of goods allegedly linked to forced labour. The proposal was announced by the Office of the US Trade Representative (USTR) as part of an investigation conducted under Section 301 of the US Trade Act.

According to the USTR’s findings, India could face an additional tariff of 12.5% on goods exported to the United States. The proposed measure is part of a broader plan targeting 60 economies, with tariff rates ranging between 10% and 12.5% depending on the findings related to each country.

India among countries facing higher tariff proposal

The USTR said India had not effectively enforced restrictions on imports made using forced labour, describing the issue as a burden on US commerce. The agency argued that inadequate enforcement by major trading partners creates unfair competition for American workers and businesses.

While countries including Canada, Mexico, the European Union and the United Kingdom are proposed to face a 10% tariff, India is among a larger group of economies that could be subjected to a 12.5% duty under the recommendation.

Proposal comes during India-US trade discussions

The tariff proposal has emerged while Indian and US officials are engaged in trade negotiations aimed at strengthening economic ties between the two countries. A US delegation led by Assistant USTR Brendan Lynch is currently holding discussions with Indian officials in New Delhi.

India’s Commerce Ministry has indicated that discussions with the United States on the matter are continuing and noted that the proposed tariffs have not yet been finalised. The USTR has invited public comments on the proposal until July 6, with a public hearing scheduled for July 7 before any final decision is taken.

Certain products may remain exempt

The proposed tariffs include exemptions for several categories of goods, including some energy products, pharmaceuticals, rare earth materials and selected agricultural commodities. Additional details regarding sector-specific measures, including proposed textile-related actions, are expected to be released separately.

The latest move follows a Section 301 investigation launched earlier this year into forced labour concerns across global supply chains. Any final decision on imposing the tariffs will be made after the consultation process is completed.