Both India and UK taking initiatives to drive the recovery from Covid pandemic:
- As the world faces the economic fallout of the Covid-19 pandemic, it is important for countries to not just recover, but build back better and stronger.
- The United Kingdom (UK) and India are leading the global economic response to Covid-19, as co-authors of the G20 Action Plan.
- The governments of both the countries have announced a series of initiatives across investment, trade, infrastructure and sustainable finance to drive growth and jobs for both countries.
Progress in economic relations since the first Dialgue (EFD):
- Since the first India-UK Economic and Financial Dialogue (EFD) in 2007, trade between the UK and India has more than doubled to nearly £24 billion in 2019.
- The Indo-UK investment relationship now supports over half a million jobs in each other’s economies.
- The combined revenue of Indian companies in the UK has grown by 87% in the last five years.
- The UK is the second fastest growing G20 investor in India over the last 10 years; since 2000, British companies have invested nearly £22 billion.
- The UK is India’s second biggest research partner.
10th India-UK Economic and Financial Dialogue (EFD):
- Recently, the finance ministers of India and UK held the landmark 10th India-UK Economic and Financial Dialogue (EFD), supported by regulators and senior industry leaders from both countries.
- The latest dialogue provided an opportunity to reflect on the progress so far since the first EFD, and look at future challenges.
- The next couple of years have important international events for the countries, as the UK prepares for its G7 and COP-26 presidencies in 2021, and India hosts the G20 Summit in 2022.
Agreed to work together:
- The UK-India partnership presents many opportunities,and is a relationship fit for the 21st century.
- The finance ministers of the two countries restated their commitment to work together, with tangible action.
- They agreed an ambitious new partnership to share expertise on infrastructure finance and project delivery.
- Sustainable finance and green investment:
- The ministers agreed to scale up our cooperation on sustainable finance, to mobilise even greater green investment.
- As the need for building a resilient world becomes increasingly urgent, sustainable finance has particularly exciting potential.
- For instance, the joint UK-India Green Growth Equity Fund, announced at the ninth EFD, has already catalysed nearly £300m of investment to support green infrastructure projects in India.
- This means innovative companies, who know how to build in a sustainable way, now have access to reliable finance to grow their business and help clean up our world.
- Financing India’s infrastructure and development:
- India and UK now have a chance to deepen collaboration in infrastructure finance.
- As the world’s leading global financial centre, London can be the perfect partner for New Delhi’s ambitious growth plans — including the delivery of India’s $1.5-trillion national infrastructure pipeline.
- Indian firms have raised £11.5 billion in masala, dollar and green bonds listed on the London Stock Exchange since 2016.
- UK’s world-class UK regulatory expertise can help accelerate the development of through a strategic partnership on India’s new GIFT City’s international financial centre.
- Freer capital flows between the countries:
- Through their FinTech ties, the UK and India will aim to facilitate the flow of faster and cheaper remittances.
- Through a new financial markets dialogue, the finance ministers agreed to address regulatory barriers and enable the free flow of capital between the UK and India.
- The opportunities are huge — for example, in insurance where the ministers have agreed to explore ways to boost investment further.
Conclusion:
- Through a raft of new initiatives, including joint investment to lead pioneering research on Covid-19, the UK and India are setting out a strong economic agenda for the future.
- The two are well positioned for another prosperous 10 years of relationship — and for a 21st century partnership which leads the way on global recovery.
