IUKFP: Progress Report

At their Economic and Financial Dialogue (EFD) meeting in July 2014, the Finance Minister of India, Shri Arun Jaitley and the Chancellor of the Exchequer, George Osborne MP, decided to deepen financial services links between India and the UK and launched the India-UK Financial Partnership (IUKFP).

They appointed co-Chairmen, Uday Kotak, Executive Vice Chairman and Managing Director, Kotak Mahindra Bank and Sir Gerry Grimstone, Chairman, Standard Life to lead the initiative. The co-Chairmen established a group of senior private sector practitioners from both countries and enlisted support from financial regulators who have actively participated in taking forward the work. TheCityUK and Kotak Mahindra Bank project manage this initiative.

The Partnership has held a number of meetings in both London and Mumbai and made substantial progress. The co-Chairmen have identified a total of nine work-streams that the Partnership will focus on with the objective of making recommendations based on the perspective of practitioners and aligned with policy priorities of the two Governments. It launched three papers, which cover Development of India’s Corporate Bond Market, Pensions and India’s Insolvency Regulations, in November 2015, and these have been well received by the Government of India. The work of the IUKFP was recognised during the meeting of Prime Ministers Modi and Cameron in November 2015 in London, when it was asked to lead the financial services pillar of the reconstituted UK-India CEO Forum.

The Partnership has also completed an initial report on Infrastructure Funding, which was handed to the Finance Minister and Chancellor on the occasion of their EFD on 19 January 2016, along with a report on progress. It is currently developing a paper on Financial Inclusion, which will complete the five topics identified in Phase I of the Partnership. In Phase II, it intends to prioritise the Internationalisation of the Rupee and Re-Insurance and has already commenced discussions on these topics.