Chancellor Philip Hammond has called on the City of London to help the UK form an “unbeatable combination” with India as investors get the chance to back India's energy and renewables market.
In a wide-ranging trip to India, Hammond and his opposite number Arun Jaitley revealed a soon-to-be launched infrastructure fund would target the sector.
And writing exclusively in today's edition of City A.M. Hammond said the UK is “perfectly placed” to be India's financial partner of choice.
“My message is ‘Make in India, finance in the UK’,” the chancellor said, adding that the context of Brexit made the links between the two countries all the more vital.
“We believe that the UK’s position as a global finance hub, our plans to build a truly Global Britain as we leave the EU, and India’s own ambitious growth aspirations make an unbeatable combination to help us take our relationship to the next level,” he said.
Hammond is leading a delegation of British financial services leader in India, and is expected to address the India-UK fintech conference in Mumbai later today.
“With us we bring this message: as the world's oldest democracy and the world's biggest democracy, who better to show the world the true benefits of free trade and open markets than Britain and India?” he said.
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The National Investment and Infrastructure Fund aims to put £500m towards Indian projects, and is currently seeking a fund manager, with an appointment expected late this year.
Announced in November 2015, it will benefit from a total of £240m of funding, split evenly between the Indian and British governments.
More than 37 rupee-denominated “Masala” bonds have been issued on the London Stock Exchange, with the largest raising £400m.
In addition, both governments are exploration options for collaboration between the Financial Conduct Authority and the Royal Bank of India.