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Informist, Wednesday, Apr. 9, 2025

NEW DELHI - Finance Minister Nirmala Sitharaman met her counterpart in the UK Rachel Reeves for the 13th India-UK Economic and Financial Dialogue and after deliberations, and listed a slew of areas where the two countries can collaborate in the future.

Held in London, the meeting was attended by Finance Secretary Ajay Seth, International Financial Services Centres Authority Chairman K. Rajaraman, Whole Time Member from Securties and Exchange Board of India Kamlesh Varshney and other senior officers from Ministry of Finance and Indian High Commission in London. Governor of the Reserve Bank of India Sanjay Malhotra also attended the meeting in a virtual mode. The UK delegation included the governor of Bank of England, economic secretary of treasury, and senior officials. 

According to a release from the finance ministry, India and UK reaffirmed their commitment to continue with collaboration in the financial services sector, FinTech and the digital economy and between the respective regulatory bodies. Also, collaboration at bilateral and multilateral fora to address mutual and global economic issues.

Following are the key takeaways from the joint statement issued by the ministry:

1. Both the sides look forward to furthering the bilateral relations between the nations, including continuing negotiations at pace towards a mutually beneficial free trade agreement and bilateral investment treaty.

2. Both the sides look forward to the signing of the India-UK Defence Industrial Roadmap to strengthen ties between industrial sectors and support supply chains.

3. Both the sides recognised the efforts towards developing each other's financial sector strategies and agree to work together on synergies. Both the sides welcome the increase in UK-India financial services trade over recent years and commit to work together to grow this further.

4. Both the sides welcomed the continued progress of the India-UK Financial Partnership which they recognise will deepen financial sector ties between the two markets. 

5. Both the sides acknowledged the opportunities that overseas equity listings offer to broaden access to global investors and enhance liquidity. Both the sides welcome the recent regulations allowing direct listing in India's GIFT City, which will pave the way to allow Indian companies to list in international jurisdictions and noted the feasibility being explored by India for this at the London Stock Exchange.

6. Both the sides noted the role that UK bond markets can play in supporting capital-raising for Indian corporates, including through rupee-denominated masala bonds, and agree to work together to boost opportunities and create supportive policy framework for expanding this further.

7.Both the sides look forward to exploring the opportunity for collaboration in pensions and insurance funds, recognising that greater international investment can lower the cost of capital, support domestic pensions and insurance needs, and drive shared economic growth. The UK welcomed the approval granted to insurance companies in GIFT IFSC to invest overseas and the proposal under consideration to enable pension companies in GIFT IFSC to invest overseas.

8. Both the sides noted the potential for greater internationalisation of the Indian rupee, welcome India permitting the opening of rupee accounts in overseas jurisdictions, and agree to explore the role that London as a global financial centre and hub for foreign exchange can play in supporting the internationalisation of India’s currency.

9. Both the sides welcomed the agreement to formalise cooperation between the FCA and IFSCA through an Exchange of Letters. This sets out a clear framework for future regulatory cooperation including the exchange of information on regulatory developments and best practice.

10. Both the sides recognised mutual interest in deepening the asset management relationship between the markets, recognising the significant role this sector plays in financial ecosystems and the benefits of future collaboration in helping accelerate India’s development of the sector. India agreed that the UK asset management sector can complement the UK-India Infrastructure Financing Bridge and support increasing opportunities for Indian investors to access global funds. Both the sides agreed to work together on a supportive policy framework and to use the next Financial Markets Dialogue to discuss this further.

11. Separately, both the sides also agreed to explore the feasibility of cooperation on KYC processes to bring greater efficiency in compliances and enhance cross-border financial activities while upholding international standards.

12. Both the sides agreed to convene the next meeting of the Fintech Joint Working Group later this year. Building on the UK-India Payments Roundtable held in October 2024, the nations agreed to explore options for enhancing cross-border payments between India and UK.

12. Both the sides committec to strengthening cooperation in the International Monetary Fund. Both the sides support a strong, quota-based, and adequately resourced IMF at the centre of the global financial safety net. Both the sides called on all parties to implement the IMF's 16th General Review of Quotas as soon as possible.

13. Both the sides recognised the importance of international tax cooperation, such as on the OECD or G20 Inclusive Framework Two-Pillar Solution, to build sustainable tax bases and to work together towards a fairer, more inclusive, stable, and efficient international tax system fit for the 21st century.

14. Both the sides acknowledged the critical need to tackle illicit financial flows and the importance of using their leadership roles in FATF to protect the global financial system and deliver wider economic objectives on growth, financial stability, and economic security. Building on this, both the sides committed to hold a one-off UK-India Strategic Leadership Exchange on Illicit Finance.

15. Both the sides remained committed to ongoing cooperation on the development of sustainable finance. 

16. Both the sides noted the role of India's Priority Sector Lending guidelines in driving finance to critical sectors for sustainable growth, the enhanced coverage of the revised guidelines effective from Apr. 1, including renewable energy, and look forward to further cooperation on how international banks can best support priority sectors in India. End

Reported by Priyasmita Dutta 

Edited by Akul Nishant Akhoury

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