- the counterparts agree to strengthen collaboration on
financial services and infrastructure
- and pledge to continue to work together to tackle
climate change through sustainable finance
The UK and India made agreements on financial services,
infrastructure and sustainable finance today, helping to
boost jobs and investments for UK companies.
The landmark tenth Economic and Financial Dialogue (EFD)
between the UK and India saw the Chancellor, , and the
Indian Minister of Finance, Nirmala Sitharaman, meeting to
build further economic ties between the two countries.
The UK and India have a strong investment relationship,
with UK and Indian investments supporting over half a
million jobs in each other’s economies. More than 800
Indian companies operate in the UK, employing more than
110,000 people.
The Chancellor and Minister of Finance discussed the
importance of continuing to work together to deal with the
global economic impact of Coronavirus - and tackling
climate change through sustainable finance.
The Chancellor of the Exchequer, said:
The UK’s economic and financial relationship with India
has never been more important with the global challenges
we face.
Today we set out our ambition for even stronger ties,
with an agreement that will increase investment, and
create and secure jobs in the UK.
We are also committed to working together to lead the
global economic recovery as we build back better after
the pandemic.
Agreements reached today include:
- a new UK-India Partnership on Infrastructure Policy and
Financing which will help to open up infrastructure
opportunities in India to UK commercial expertise and
financing.
- strengthening cooperation on mobilising private capital
into green investment, including through a new UK-India
Sustainable Finance Forum, and greening the financial
system
- a fresh mandate for the industry-led India-UK Financial
Partnership to explore closer financial ties in areas
including FinTech
- creating a new Financial Markets Dialogue to remove
regulatory and market access barriers for UK and Indian
firms
- a new partnership in Gujarat International Finance Tec
(GIFT) City, India’s flagship new international financial
centre, which will create opportunities for UK firms
- joint investment in research collaborations worth up to
£8 million to understand the impact of Covid in South Asian
populations in the UK and India
During the talks, the Chancellor championed measures to
help the UK financial services industry win more business
in India and welcomed the decision to allow Indian
companies to list on the London Stock Exchange – the UK
being one of only seven jurisdictions permitted.
Ministers also agreed to explore ways to boost investment
in insurance through an increase in India’s foreign
investment limit.
Alongside the EFD, the Chancellor addressed industry
leaders at the UK-India Investing for Growth Forum hosted
virtually by the City of London Corporation and the
Federation of Indian Chambers of Commerce and Industry. The
Chancellor highlighted the enormous potential for the UK
and India to work together to drive green sustainable
finance flows and generate even stronger bilateral
investment.
Notes
-
The joint
statement, signed by the Chancellor and the Indian
Finance Minister
-
The Chancellor holds EFDs with key emerging market
partners, including India, China and Brazil. Since the
first EFD with India in 2007, UK bilateral trade with
India has more than doubled to nearly £24 billion in
2019.
-
India is now the UK’s second largest source of
investment with 120 new projects in 2019-20.
-
Indian investment in the UK is focused on technology,
pharmaceuticals and manufacturing, including electric
vehicles at Jaguar Land Rover’s Castle Bromwich plant
in the West Midlands.
