has concluded his first
international visit as Chancellor to Bengaluru, India, for the
first G20 Finance Ministers and Central Bank Governors meeting
held under India’s 2023 Presidency.
The Chancellor, alongside Andrew Bailey, the Governor of the Bank
of England, attended a meeting of G7 Finance Ministers and
Central Bank Governors on Thursday 23 February. They were joined
virtually by Ukrainian Finance Minister Serhiy Marchenko. Their
statement sent a strong message of condemnation for Russia’s
war of aggression against Ukraine, announced an increase of
financial support for the Ukrainian government to a total of
US$39 billion in 2023 and committed to continue supporting
vulnerable countries hardest hit by the economic impact of the
war.
On Friday, the UK announced a fresh wave of internationally
co-ordinated sanctions and trade measures, to further restrict
Russia’s capability to wage war in Ukraine both now and in the
future.
The Chancellor also attended the first G20 Finance Ministers and
Central Bank Governors meeting under the Indian Presidency.
He condemned Russia’s brutal acts in the strongest terms,
emphasising– like many other Ministers present – that securing
peace was the most important action for global growth. He also
underscored the need for bilateral official creditors and private
sector to urgently help address low and middle-income country
debt vulnerabilities in developing countries; the importance of
multilateral development banks boosting lending from their
existing balance sheets; and called on the G20 to fulfil its
pledge to channel $100 billion of IMF Special Drawing Rights in
support of developing countries.
The Indian Presidency issued a Chair’s statement at the end of
the meeting. It highlighted, among other things, the continued
need to fight inflation, and the importance of supply-side
policies, especially those that increase labour supply, boost
growth and alleviate price pressures. There was also G20
consensus, including China, on the need for swift resolution of
existing debt restructuring cases and to work on the impacts of
food and energy insecurity on the global economy.
While in Bengaluru, the Chancellor had productive bilateral
meetings with U.S. Treasury Secretary Janet Yellen, Federal
Reserve Chairman Jerome Powell, French Minister of Economy and
Finance Bruno Le Maire and , Managing Director of
the International Monetary Fund. He also met with Australian
Treasurer Jim Chalmers.
At a meeting with Indian Finance Minister Nirmala Sitharaman,
both sides agreed to make further progress on the UK-India Free
Trade Agreement and deepen bilateral economic and financial ties.
They agreed to make swift progress on setting up the next
UK-India Economic and Financial Dialogue.
The Chancellor took the opportunity whilst in Bengaluru to meet
with business leaders, home to India’s fast-growing tech hub. He
visited the offices of Indian consultancy and tech multinational
Wipro, which employs over 4,000 people in the UK.
Chancellor of the Exchequer said:
“Meeting fellow Finance Ministers face to face is an
excellent opportunity to make real progress on the key global
economic issues of our time.
“I first visited India 38 years ago, and it’s been
fascinating to see how much the country has changed in this time
– there are positive lessons to be learnt from their successful
rapid development.
“It’s been great to hear from Indian technology business
leaders here in Bengaluru how they are pushing the country’s
economy forward, and I look forward to further collaboration
between India and the UK as we continue to trade and create jobs
– delivering on the government’s plan to grow the economy”
While speaking at the meetings, the Chancellor set out the UK
government’s intention to protect the most vulnerable from
cost-of-living pressures, whilst maintaining fiscal
sustainability with debt falling and not adding to inflationary
pressure.
He added that the upcoming Spring Budget on 15 March will drive
economic growth , focusing on skills, business and infrastructure
investment and research and innovation, as well as reviewing
regulations of the UK’s key growth industries.
