India, UK strengthen financial ties at 3rd dialogue

The 3rd India-UK Financial Markets Dialogue (FMD) took place at GIFT City in Gujarat, India on Friday. The meeting, hosted by the Department of Economic Affairs, Ministry of Finance, brought together senior officials from India and the UK, including representatives from regulatory bodies such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), International Financial Services Centre Authority (IFSCA), and their UK counterparts like the Bank of England (BoE) and the Financial Conduct Authority (FCA).
Opening discussions reflected on  progress since the previous FMD in April 2023, with participants emphasizing shared goals to strengthen financial services growth. Both nations outlined reforms and strategic priorities in capital markets, insurance, pensions, and fintech to enhance bilateral trade and investment. In capital markets, delegates highlighted India's efforts to introduce innovative financial products and the UK’s updates to market frameworks. Discussions included recommendations from the India-UK Financial Partnership (IUKFP) Capital Markets Working Group and explored opportunities for Indian companies to list directly in GIFT IFSC, with prospects for listings on the London Stock Exchange.
The insurance and pensions sector featured prominently, with India sharing updates on reforms to attract Foreign Direct Investment (FDI) and expand reinsurance capabilities. The UK provided insights on Solvency II updates and new pension reforms. Both sides discussed leveraging these changes for mutual benefit, including enabling overseas investments by companies in GIFT IFSC. Fintech innovation was another focal point, with dialogue covering digital payments, regulatory sandboxes, and technologies like Artificial Intelligence and Quantum Computing. Both sides agreed to host the next India-UK Fintech Joint Working Group in early 2025.
Sustainable finance was another key focus, underlining its role in addressing climate change and supporting the transition to low-carbon economies. India outlined its plans to develop a climate finance taxonomy and discussed its recent Sovereign Green Bond issuances. The UK emphasized outcomes from COP29 and its Mansion House reforms. Both parties agreed to deepen collaboration in sustainable finance through engagements like the India-UK Sustainable Finance Forum scheduled for early 2025.
The dialogue concluded with updates on the growth of GIFT City as a hub for international financial services and the City of London's prominence as a global financial center. Participants noted the mutual benefits of ongoing collaboration in advancing trade, growth, and investment. The meeting reaffirmed the importance of the India-UK Financial Partnership in fostering business-to-business links and addressing trade barriers to unlock commercial opportunities between the two markets.

(Business Correspondent)