UK Chancellor of the Exchequer, Rishi Sunak and Finance Minister Nirmala Sitharaman on Wednesday signed set of new India-UK initiatives on Capital investment, Infrastructure policy, sustainable finance and research at 10th Economic and Financial Development (EFD) between India and UK.
The virtual discussion was held in regards to dealing impact of pandemic on economy, climate change and further strengthen economic and trade relation between both countries.
Addressing the event, Finance Minister Sitharaman said, India’s $ 1.4 trillion National Infrastructure Pipeline (NIP) and City of London are working hand in hand to ensure sustainable flow of finance.
Chancellor of Exchequer, Rishi Sunak said, new infrastructure and finance policy partnerships will bring capital into ambitious NIP, a new finance forum will ensure sustainable financing between two countries.
He further said, India is estimated to require total investments worth $ 4.5 trillion for sustainable infrastructure development, and UK with deep and liquid capital markets can play enormous role in providing capital to meet India’s demands.
India’s and UK’s relationship has never been more important with the global challenges we face today, we set out a more ambitious partnership in agreement to increase investment, create and secure more jobs, he added.
Finance Ministry in a tweet said, India-UK trade has more than doubled since the first EFD in 2007, with bilateral investment supporting over half a million jobs across both countries.
“India holds huge potential for investors, and the Indian government’s ambitious vision for infrastructure financing is a massive opportunity to drive the post-pandemic global economy forwards,” said William Russell, the Lord Mayor of London.
The salient features of new India-UK agreements include following details.
A new collaboration to fasten development of Gujrat International Finance Tec-City (GIFT City), and strengthen links between Indian and UK’s financial centres, by bringing together governments, regulatory bodies, corporations to share expertise, read the agreement.
100% tax exemptions on sovereign wealth funds investing in infrastructure sectors. i.e. £ 3 billion across 300 Indian firms
United Kingdom Research and Innovation (UKRI) and Indian Council of Social Science Research (ICSR) to commit £ 6 million for joint research projects in India-UK trade and investment
To combat pandemic, Investment of £ 8 million for research and understanding of factors leading to severity of COVID-19 in south Asian Population in India and UK
Another £ 600,000 as initial fund for India’s COVID-19 Joint Response Plan (JRP) and anti-microbial resistance via WHO, by UK department of Health and Social Care.
India-UK FinTech Joint working group will seek for greater acceptance of RuPay cards across UK
India-UK fast track Start-Up fund, to fund Indian younger tech start-ups with technology assistance, human resources, entrepreneur and capital links, and policy support.
Establishment of new India-UK finance forum