India-UK engage during first financial markets dialogue

India and the UK discussed the Gujarat International Finance Tech (GIFT) City, banking and payments, insurance and capital markets, during the first India-UK financial markets dialogue to deepen bilateral ties between the two countries in the financial sector.

The Dialogue was established at the 10th Economic and Financial Dialogue (EFD) in October 2020 to deepen bilateral ties in the financial sector.

Financial Cooperation is one of the key pillars of the 2030 Roadmap adopted by the two countries during the recent meeting of the two Prime Ministers and the India-UK Financial Market Dialogue is one of the key elements of this Financial Cooperation.


Participants also took stock of capital markets cooperation. The ministry noted, "There was also a productive discussion on opportunities for increased cross-border activity, including an update from India on implementation of the direct listings policy."

Both sides agreed to continue to engage bilaterally on these areas in the coming months, in the run up to the next EFD and the beginning of negotiations for a future India-UK FTA, both expected to take place later this year, the ministry said.

The City of London Corporation India-UK Capital Markets Working Group presented its recommendations from its recently published paper on ‘Unleashing the potential of the Indian Debt Capital Markets’.

The report focused on enhancing the Indian debt capital markets ecosystem, as well as making it easier for Indian companies to raise capital internationally – to support India’s growth potential, infrastructure needs and enhancing the country’s sustainable energy capacity. The recommendations include areas such as reforms to primary issuances, secondary markets, taxation rules, market ecosystem and ESG.


The City of London Corporation’s Capital Markets Working Group presented their work on the Indian corporate bond market, and the India-UK Financial Partnership presented their recommendations on the UK-India financial services relationship.

"At the meeting, Indian and UK participants discussed progress on the UK-India GIFT City Strategic Partnership. Both sides agreed on areas for further collaboration, including sustainable finance and fintech, with the aim of supporting increased UK industry presence in the centre," the ministry added.

Participants provided updates on their respective banking and payments landscapes, with a view to increase cross-border activity in this area.

The Bank of England discussed its work on cyber resilience. Both sides also recognised the key role the banking sector has played in maintaining stability during the Covid-19 pandemic.

Participants discussed matters relating to the insurance sector,including domestic updates on the impact of Covid-19, opportunities to encourage increased UKinvestment in the Indian market, and the UK Solvency II Call for Evidence.

The Dialogue was led by senior officials from the Indian Ministry of Finance and HM Treasury, with participation from Indian and UK independent regulatory agencies, including the Reserve Bank of India, the Securities and Exchange Board of India, International Financial Services Centre Authority, Insurance Regulatory and Development Authority of India, the Bank of England, and the Financial Conduct Authority.