Alok Sharma MP: our mantra is “Make in India – Finance in the UK”

By UK India Business Council (UKIBC)

Foreign Office Minister for Asia and the Pacific, Alok Sharma MP, reveals why the relationship between India and the UK is going from strength to strength

As Minister for Asia and the Pacific I want to do all I can to accelerate both Britain and India’s prosperity. Our trade and investment relationship is vital to the strength of both our economies. Our bilateral trade was worth nearly £16 billion last year and we believe there is room to grow.

In my former role as the Prime Minister’s Infrastructure Envoy to India, I was involved in encouraging Indian companies and public sector entities to see the City of London as the natural home for raising offshore finance. It was therefore my great pleasure to attend in August the launch of the first rupee-denominated masala bonds in London by an Indian company: Housing and Development Finance Corporation (Rs 30 billion raised), closely followed by the National Thermal Power Corporation launch. There are more of these ‘Masala bonds’ in the pipeline and our clear aspiration is for the City of London to become India’s international destination of choice to raise funds, particularly to finance India’s ambitious infrastructure plans. Our mantra is: Make in India, Finance in the UK!

The UK is keen to support Prime Minister Modi’s reform ambitions. British experts are advising in areas such as better regulation, smart cities and skills, as well as providing technical assistance to support the massive expansion of renewable energy which will be central to India’s growth aspirations.

The recent move by the Government of India to further liberalise foreign direct investment will help boost employment and attract investment into India. The introduction of a unified tax for Goods and Services in August should boost growth and competitiveness. Prime Minister Modi’s efforts to improve ease of doing business in India are achieving results too: India moved up four places from its rank last year in the World Bank report on Ease of Doing Business.

During my visit to India in July, I discussed with Indian Government Ministers and businesses the decision of the British public to leave the European Union. The UK continues to want the strongest trade and investment relationship with India. It was very encouraging to hear directly from India business leaders that the UK remains a key investment destination for them.

While our future relationship with the EU is still to be determined, working with India remains an important priority for the British Government. We are committed to our relationship with India and I am deeply honoured to play my part in building ever stronger bonds.


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