UK and India strengthen economic ties to boost jobs and investment

Chancellor, Rishi Sunak, and the Indian Minister of Finance, Nirmala Sitharaman, have pledged to strengthen the economic ties between the UK and India to boost jobs and investment.

UK and Indian investments already support over half a million jobs in each other’s economies but the Chancellor and Minister of Finances have stressed the importance of continuing to work together to deal with the global economic impact of Coronavirus.

The Chancellor of the Exchequer, Rishi Sunak 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.”

During the talks, the Chancellor backed 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.

Ministers also agreed to explore ways to boost investment in insurance through an increase in India’s foreign investment limit.

Additional agreements made 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.