Following is the full Text of the Joint statement made by the UK
Chancellor of the Exchequer Mr Philip Hammond and the Finance Minister of India
Shri Arun Jaitley at the 9th UK-India Economic and Financial Dialogue held here
“We, the finance Ministers of the UK and India, met here today in
Delhi for the 9th round of Economic and Financial Dialogue (EFD). At today’s
meeting, we discussed how, notwithstanding the UK’s triggering of Article 50,
India and the UK can work together to: strengthen our existing economic
partnership in order to further boost trade and Investment and; build on the
bold vision for the India-UK Strategic Partnership set out by our Prime
Ministers during Prime Minister May’s November 2016 visit to India.
Global Economy and policy responses
We welcome the strength of the economic outlook for both
countries. Whilst economic confidence has increased and global growth is
forecast to rise in 2017, we recognise that political risk and policy
uncertainty in some parts of the world remain heightened and Share concerns
around policy space to respond to future shocks. The UK and India agree that
globalisation has had positive impact on the world, and remain strong advocates
for free Markets and free trade. We agree that International Cooperation is
vital to make the Global Economy work for everyone and address shared global
challenges. Both sides commit to work together to strengthen our co-operation
in the G20, IMF, World Bank and other multilateral bodies to that end.
The UK and India share a common commitment to addressing
cross-border Tax Evasion and avoidance and agree to collaborate in determining
the status of wealth deposited in foreign financial accounts by nationals of
both countries. We look forward to enhanced cooperation in this area. The two
sides encourage timely implementation of the G20/OECD Base Erosion and Profit
Shifting Project outputs and call on other countries to meet their commitments.
The UK and India have committed to the Common Reporting Standards on Automatic
Exchange of Tax Information and will begin to exchange information in 2017.
We also support work to strengthen the Global Financial Safety Net, with
a strong, quota-based and adequately resourced IMF at its centre. We urge all
members to work towards the IMF completing the 15th General Review of Quotas by
Spring or no later than the Annual Meetings of 2019. We will also work with the
World Bank to ensure progress of commitments under the Forward Look as per the
roadmap agreed at the 2015 Annual Meetings. We recognise the importance of
international cooperation on financial stability, and remain committed to
supporting the implementation of agreed reforms under the auspices of the
Financial Stability Board and Basel Committee of Banking Supervision. We also
look forward to finalising the remaining elements of the regulatory framework.
India and the UK reiterate their concern at the threat posed
by antimicrobial resistance and underline the need to explore evidence-based
ways to mitigate resistance. Both sides agreed to work together to ensure
effective implementation of FATF’s anti-Money Laundering and counter-terrorist
financing standards globally.
India and the UK have agreed to continue sharing economic
knowledge and expertise, including through the India-UK Economic Policy and
Prosperity Partnership (EPPP). Under this Partnership Programme, both countries
welcomed the success of the first annual Exchange Programme between officials
from the Indian Economic Service and UK Government Economic Service. They
committed to developing EPPP so that it further deepens institutional ties and
helps to improve economic policymaking in both countries. It is proposed to
co-host an economic conference in India this year, which will provide a forum
for exchanging ideas and taking forward shared priorities.
The UK and India also welcomed the selection of the first
Chevening Standard Chartered Financial Services Fellows – eight top Indian
financial services leaders of the future – who will attend an eight week
intensive course in financial services in London in the spring; and the
inauguration of the IMF’s South Asia Regional Training and Technical Assistance
Centre (SARTTAC) in February 2017. India and the UK are both founder members of
this centre. This centre will further strengthen Macroeconomic and financial
Trade and investment
The trade and investment relationship between India and the UK is
flourishing and continues to expand and deepen. We reaffirmed our Prime
Ministers’ commitment to building the ‘Closest possible commercial and economic
We reviewed progress made since Prime Minister May’s visit
to India in November 2016. In particular, we noted the success of the Joint
Working Group on trade, which held its second meeting between senior officials
in March 2017. Both sides were encouraged by the work of the Joint Trade
Review, which seeks to identify steps to strengthen our trade relationship, now
and as the UK leaves the EU.
Investment is a particularly important part of this economic
and commercial partnership. The UK and India reaffirmed non-discriminatory
treatment of Foreign Investors and committed to ensure an environment in which
investors can continue to invest with confidence. The UK and India agreed to
work together swiftly to encourage sustainable bilateral investment that
benefits both countries, including through the Joint Working Group.
Both sides welcomed the recent launch of a Fast Track
investment promotion mechanism, which provides a single window to help UK
companies when establishing and expanding their business in India.
Improving the business environment
We are committing to taking forward measures to improve the
regulatory environment in India, following the signing of a Memorandum of
Understanding in November 2016. Reforms in India, including the GST and
Insolvency legislation, are significant steps towards improved business
conditions in India. Both sides welcomed UK’s support to India in implementing
these reforms, drawing upon the UK’s experience to share knowledge, Best
practices and build capacity in areas including regulation, Insolvency and tax
The UK and India recognise the social and economic benefits
of a dynamic, vibrant and balanced national intellectual property regime
including as a driver for growth. Both countries exchanged a Memorandum of
Understanding to commence bilateral cooperation in November 2016 and look
forward to now agreeing to a work plan setting out a range of bilateral
activities aimed at improving administration, outreach, use and enforcement of
Financial services relationship
Both governments welcomed the impressive progress by the
India-UK Financial Partnership (IUKFP), under its co-chairs Mr Uday Kotak and
Sir Gerry Grimstone, since its establishment as part of the 2014 Economic and
Financial Dialogue. The two Finance Ministers recognised the success of this
government initiated and private-Sector led partnership in deepening links
between our countries and generating commercial opportunities for both sides.
Both sides welcomed the publication of further reports on financial inclusion,
responsible shareholder engagement, rupee internationalisation and green
finance. The Finance Ministers also agreed to renew the IUKFP’s mandate and
looked forward to future papers on bank restructuring, fintech, disinvestment,
India-UK trade and investment relationship – recommendations from financial and
professional services – and Ease of Doing Business in financial and
Recognising the crucial role of insurance and reinsurance to
e complex risks in the economic system, the
UK and India welcomed the opening of Lloyd’s of London’s first Indian branch to
underwrite re-insurance business. Both sides also agreed to work to boost
cooperation and collaboration between the regulatory authorities and industries
in both countries to foster sharing of best practices.
Both sides recognised the importance of developing strong
pension systems, agreeing that India and UK can share experiences in this area.
Financing India’s growth
Both sides recognised London’s position as the world’s
leading financial centre and the crucial role its markets will continue to play
in raising capital for investment in India. We applauded the successful
issuances by HDFC (INR 3,000 crore or £366 million) and NTPC (INR 2,000 crore
or £244 million), the First Ever masala bonds to be issued by Indian entities.
Both sides also welcomed the issuance in London by the Canadian province
British Columbia, the first foreign sub-national entity to issue
The two Finance Ministers welcomed that the proposal of
National Highways Authority of India (NHAI) to issue a Masala Bond in London in
next few months. They also welcomed IREDA’s plans to issue a green bond in
London and list their masala bonds on the London Stock Exchange within six
months. They also looked forward to other Indian entities, including Energy
Efficiency Services Limited (EESL) and Indian Railway Finance Corporation(IRFC)
preparing to issue Masala Bonds in London in the coming months.
Given the increasingly important role the rupee will play in
the global economy in years to come, we also welcomed the City of London
Corporation’s establishment of a Rupee Initiative to bring together market
experts and leverage the UK’s position as the world’s number one foreign
exchange centre to further develop this market.
The two Finance Ministers were pleased with the strong
progress being made to establish the joint India-UK fund under the National
Investment and Infrastructure Fund (NIIF). Technical Assistance from the UK has
played an important role in the initial phase of the NIIF and in establishing
its readiness to raise and manage funds. The joint UK-India fund aims to
leverage private Sector investment from the City of London to finance Indian
infrastructure projects. Both governments reaffirmed their commitment to anchor
invest up to £120 million each in the joint fund which aims to raise around
£500 million, and has the potential to unlock much more in future. The two
Finance Ministers announced that the fund will focus initial investments on
India’s rapidly growing energy and renewables market and that a fund manager is
expected to be selected by the Autumn. Progress will be accelerated by starting
the process of appointing a fund manager now with early market engagement via
the publication of a blueprint, with the aim to identify additional and
complementary sectors for fund investments.
The UK and India recognised the importance of combating
Climate Change, supporting the mobilisation of finance from a variety of
sources, instruments and channels to mitigate its effects alongside generating
economic opportunities. We welcome the work of the G20 Green Finance Study
Group promoting green finance and encouraging the issuance of green bonds, among
other forms of green finance, to aid this objective. The UK welcomed India’s
efforts to promote green finance, including the steps taken by the Securities
and Exchange Board of India by issuing a concept paper on issuance of Green
Bonds and the issuance of the first ever green masala bond by an Indian entity,
NTPC. As such we agreed to set up a Forum to share experiences and best
practices, with representation from the RBI, Ministry of Finance, Ministry of
Power, Ministry of renewable energy, SEBI, Bank of England and HM Treasury,
with a view to extending membership in due course.
The Ministerial India-UK Energy for Growth Dialogue on April
7th, 2017 will identify further opportunities for the UK to engage in the
India’s highly successful green finance sector.
Developments in FinTech
The UK and India highlighted the vital role of Technology in
improving the provision of accessible, secure, high-quality financial services.
In an era of unprecedented Technological change, FinTech can improve outcomes
for consumers, increase financial inclusion, and monitor and stem flows of
Black Money. Both sides recognised the important role that FinTech will play in
supporting both Digital India and Make In India, particularly following India’s
move towards a less cash society.
Both sides agreed to deepen bilateral collaboration on
FinTech and explore the possibility of a regulatory cooperation agreement
between the FCA and the RBI in the second quarter of 2017, which will enable
the regulators to share information about financial services Innovations in
their respective markets, including emerging trends and regulatory issues. The
feasibility of a UK-India FinTech Bridge would also be explored.
Both sides welcomed the FinTech delegation joining the
Chancellor in India and highlighted the major India-UK Fintech Conference due
to take place in Mumbai on 5 April,2017.
The UK and India look forward to the next dialogue in London