The whispers started in the Lutyens’ Delhi corridors. Now they are loud enough for Whitehall to hear. India’s most powerful female politician, Nirmala Sitharaman, is facing a quiet but unmistakable erosion of her authority inside the BJP. The Finance Minister, once the undisputed face of Modi’s economic vision, is losing her grip on the party apparatus. Back-room sources say her influence over key ministries is waning. The budget cycle has become a battlefield, with rival factions leaking damaging stories to friendly journalists.
This is not just a Delhi drama. UK trade negotiators are watching every move. The post-Brexit India deal hinges on Sitharaman’s ability to deliver on tariffs and intellectual property. One diplomat told me off the record: “If she is weakened, the deal gets delayed. Full stop.” The timing is poisonous. UK ministers want a signing before the next election cycle. But if Sitharaman cannot control her party’s internal hawks, that timeline looks naive.
Inside the BJP, the chatter is brutal. Old guard rivals are sharpening knives. They point to the tepid GDP growth numbers. They mutter about her handling of inflation. The Prime Minister’s office remains publicly loyal, but the signals are mixed. A key ally of Modi recently skipped her parliamentary briefing. The omitted handshake was noted.
For the UK, the stakes are huge. A distracted Indian finance ministry means stalled negotiations. It means backbenchers in Westminster getting restless. It means the City of London’s hopes of a financial services passport fading. The Foreign Office is now running contingency planning. They are mapping alternative power centres, reaching out to cabinet colleagues who might replace her.
The irony is sharp. Sitharaman was the iron lady who steamrolled opposition. Now she faces a rebellion not from the opposition benches, but from her own party’s internal WhatsApp groups. The leaks are relentless. Unauthorized briefs paint her as aloof, out of touch with the grassroots. A party insider told me: “She has become a liability. The PM knows it. It’s a matter of when, not if, a reshuffle happens.”
Whitehall’s quiet response? Speed up the back channels. Trade minister Kemi Badenoch’s team has been in constant touch with India’s commerce secretary, bypassing Sitharaman’s office altogether. It is a diplomatic slight that would have been unthinkable a year ago.
The market is already pricing in uncertainty. The rupee dipped slightly this morning. British investors are pulling back on infrastructure pledges. Every delay empowers the protectionist wing in India, the very people Sitharaman once kept at bay.
This is a story about power. Its ebb and flow. About a woman who climbed to the summit and now feels the thin air. UK officials are betting she can fight back. But the smart money in the room is not so sure. The game is changing. And London is scrambling to keep up.
