11th India-United Kingdom (UK) Economic and Financial Dialogue (EFD) was held virtually on September 02, 2021. Union Finance Minister Nirmala Sitharaman led the Indian Delegation whereas UK Chancellor Rishi Sunak led the UK Delegation.
Investments in Green Projects:
i.Under the EFD, both the countries have signed a USD 1.2-billion package of public and private investment in green projects and renewable energy to boost India’s green growth objectives.
ii.Public Financing: The green investments also include the $1 billion investment by CDC Group, the UK’s Development Finance Institution, into climate-related projects in India over 2022-26.
iii.GGEF: New additional investment of around USD 200 million was added from a range of international investors into the joint Green Growth Equity Fund (GGEF), which invests in Indian renewable energy.
iv.CFLI: A new Climate Finance Leadership Initiative (CFLI) India partnership has been agreed upon, in which CFLI India will work with financial institutions, corporates, and existing sustainable finance initiatives, to accelerate efforts to mobilize private capital into India.
- The partnership will be led by the CFLI and supported by the UK Government and the Government of India.
i.The UK has welcomed India’s decision of increasing the FDI cap in the insurance sector from 49 percent to 74 percent. Click here to know more
ii.Global Leadership: India is chairing the BRICS (Brazil, Russia, India, China, and South Africa) and set to chair the G20 Presidency in 2023, whereas the UK presides over the G7 and COP26.
iii.The UK and India signed a Memorandum of Understanding (MoU) on Migration and Mobility Partnership for mutual exchanges and sharing of information and talents from both sides
iv.Over the last 5 years, Indian firms have raised £13.41 billion in masala, dollar and green bonds listed on the London Stock Exchange (LSE). Both the nations have set a target to double the trade by 2030.
v.UK banks are the first international banks to set up in GIFT City. The next EFD is expected to be held in London in 2022.
Recent Related News:
On July 8, 2021, the 1st meeting of the United Kingdom (UK)-India Financial Markets Dialogue (FMD) was held virtually to deepen bilateral ties in the financial sector. It was led by senior officials from the Indian Ministry of Finance and Her Majesty’s Treasury from the UK.
About Ministry of Finance:
Union Minister – Nirmala Sitharaman (Rajya Sabha MP representing Karnataka)
Minister of State (MoS) – Pankaj Chaowdhary (Constituency – Maharajganj, Uttar Pradesh), Bhagwat Kishanrao Karad (Rajya sabha MP representing Maharashtra)
About United Kingdom:
Capital – London
Prime Minister – Boris Johnson
Currency – Pound sterling