India-UK First Financial Markets Dialogue

UK-India Financial Markets Dialogue (FMD) held first virtual meeting on July 8, 2021 in order to strengthen bilateral financial connections.

UK-India Financial Markets Dialogue

·Government-to-government conversations took place during Dialogue in a bid to increase cooperation on four major themes:

1.   Gujarat International Finance Tec (GIFT) City,

2.   Banking and payments,

3.   Insurance, and

4.   Capital markets.

· Meeting was chaired by senior officials from UK Treasury and Indian Ministry of Finance.

· Representatives from independent British and Indian regulatory organisations also took part.

· Financial Cooperation is a significant pillar of 2030 Roadmap adopted by both the countries and India-UK Financial Market Dialogue is the key elements of this Financial Cooperation.

· Both the countries agreed that, there is significant scope to strengthened financial services cooperation them.

Background

· Chancellor Rishi Sunak and Finance Minister Nirmala Sitharaman had agreed to establish ‘Financial Markets Dialogue in 2020, at tenth Economic and Financial Dialogue (EFD) between both the countries.

· It was to be established to strengthen financial services cooperation and address regulatory barriers for UK and Indian firms.

Bilateral Trade between UK & India

Bilateral trade between UK and India was worth over £18 billion. India was UK’s second-largest source of investment with respect to project volume. Half a million employees are supported by British and Indian investments in both the countries.

2030 Roadmap of India-UK

2030 Roadmap of India-UK was agreed by Prime Ministers Modi and Johnson with the aim of transforming UK-India relationship, specially to build back better from Covid-19 pandemic.

Gujarat International Finance Tec-City (GIFT City)

GIFT city is a business district located near Ahmedabad in Gujarat. It is the first operational greenfield smart city and international financial services centre in India. It is located on the banks of Sabarmati River. City is designed in a way that residents can walk to work and includes commercial and residential complexes.

Month: Current Affairs - July, 2021