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India UK discuss financial cooperation

Bill Winters, Group Chief Executive of Standard Chartered, and Uday Kotak, Managing Director & CEO Kotak Mahindra Bank, were elected as the UK and India chairs of the IUKFP respectively.

The Indian and UK delegates at the meet in London. Image - Ministry of Finance, Gov. of India

The UK-India Financial Markets Dialogue (FMD) that aimed to advance collaboration across financial services, recently concluded in London. It was chaired by high-ranking personnel the Royal Treasury, India’s Ministry of Finance and independent regulatory bodies from both nations.

The meeting was the second time the India-UK Financial Partnership (IUKFP) held discussions after the first one was held in 2017.  According to a release the meeting focused on six topics: banking, insurance, payments, sustainable finance, capital markets, and asset management.

Representatives from both countries shared information on their areas of expertise and identified potential areas of cooperation, such as exchanging knowledge about regulatory frameworks for pension funds.

‌‌The meeting emphasised the importance of continuing to collaborate to investigate the opportunities presented by GIFT-IFSC in areas such as sustainable finance, fund management, capital markets for dual listing, and re-insurance. Participants at the meeting discussed the possibility of utilising the asset management sector to facilitate greater cross-border trade and investment.

Commenting on the outcome of the meeting, British High Commissioner to India, Alex Ellis, said, "Closer, deeper and broader financial cooperation between the UK and India offers huge potential to deliver jobs and prosperity for people in both countries. The breadth of themes discussed in the Financial Markets Dialogue demonstrates that."

‌‌Participants also discussed the appropriate regulation of ESG (environmental, social, and governance) rating providers and agreed to collaborate in the coming months, including participation in the Sustainable Finance Forum and the Economic and Financial Dialogue (EFD) to promote green cooperation. Financial cooperation is a fundamental target of the UK-India 2030 Roadmap. Investments made by British and Indian entities uphold approximately 500,000 employees in each other’s economies.

India ranks as the second largest investor in the UK with regard to the number of projects. The talks also encompassed subjects like sustainable finance, the G20, and cooperation in capital markets. Both nations concurred to organize the subsequent Financial Markets Dialogue in India in 2024, subsequent to an Economic and Financial Dialogue to be held between the respective Finance Ministers later in the current year.