India-UK joint efforts on fintech and infrastructure finance
The UK’s Chancellor of the Exchequer will showcase the very best that the UK has to offer on fintech during his visit to India from 25 to 26 June.
The UK’s Chancellor of the Exchequer Philip Hammond will also promote the UK’s offer on infrastructure finance and will attend the annual meetings of the Asian Infrastructure Investment Bank (AIIB) in Mumbai.
The UK was the first G7 country to join the AIIB, demonstrating the UK’s commitment to supporting investment in sustainable infrastructure across Asia. The Chancellor will also meet with Indian Finance Minister Piyush Goyal to take forward our ambitious joint work in these areas.
This visit builds on PM Modi’s successful visit to London in April, where Prime Ministers Modi and May agreed a new UK-India Tech Partnership, positioning both countries as world leaders in innovative, cutting-edge technologies.
The UK’s reputation as the global centre for fintech makes it the natural partner to support Mumbai’s ambitious plans to develop its FinTech ecosystem. The Chancellor will get a flavour for Mumbai’s vibrant fintech scene when he meets young entrepreneurs at the Zone Startups Accelerator at the iconic Bombay Stock Exchange. He will also celebrate the new FinTech Rocketships programme, which was announced during PM Modi’s visit to the UK.
Chancellor of the Exchequer, Philip Hammond said:
The UK and India have strong links and shared expertise in technology, infrastructure and financing and I’m delighted to be here in Mumbai to further develop the bonds between our countries.
I will be meeting some of India’s innovative fintech start-ups and seeing how we can support the next generation of Indian and British fintech entrepreneurs, and promoting London as the best place in the world to raise capital for Indian investors.
HM Trade Commissioner for South Asia, Crispin Simon said:
The Chancellor’s visit to Mumbai highlights the tremendous value that close cooperation between the UK and India brings to both countries, and follows a hugely successful visit to the UK by PM Modi. The UK-India relationship in infrastructure finance is already strong as evidenced by projects here in Maharashtra that are financed by masala bonds with recent issues by HDFC and the National Highways Authority of India.
Adding the new Tech Partnership, Tech Clusters in Pune and Bengaluru and partnerships between our FinTech sectors, and we really have some momentum.
The Chancellor will also deliver remarks at a ‘Raising Finance in London’ session – which includes speakers from the London Stock Exchange and the National Investment and Infrastructure Fund – and will meet senior Indian business leaders such as Anand Mahindra and Deepak Parekh, Chairman of HDFC.
During PM Modi’s visit to the UK in April this year, Prime Ministers Modi and May announced a UK-India Technology Partnership.
The UK is the world’s largest exporter of financial services and the leading centre for FinTech, contributing £6.6 billion annually to the UK economy.
The City of London continues to be the place that Indian organisations come to, to raise finance for infrastructure.
There are currently 26 masala bonds listed on London Stock Exchange’s (LSE) markets with a combined outstanding value of over £3.65 billion.
Over £2 billion of masala bonds have been listed on the LSE by Indian companies. Over the past two years, Indian issuers have raised over £5.6 billion on the LSE through masala, dollar-denominated and green bonds. These issuances have generated finance for Indian infrastructure projects including in railways, roads and renewable energy.
Our two governments have put over £240 million of seed capital into the Green Growth Equity Fund, which is a sub-fund of the National Infrastructure and Investment Fund. This will provide a high-quality conduit for international institutional investment, including from the City of London, into green and renewable infrastructure projects in India. In April, our Prime Ministers announced that the fund will be managed by BP and Everstone Capital, selected through an international competitive tender.