United Kingdom's HM Treasury published a joint UK-India statement from the 13th Economic and Financial Dialogue, setting a bilateral work programme spanning financial services, capital markets, payments, sustainable finance and wider macro-financial cooperation. A central regulatory deliverable is agreement to formalise cooperation between the Financial Conduct Authority (FCA) and the International Financial Services Centres Authority (IFSCA) through an Exchange of Letters covering information-sharing and collaboration on topics including sustainable finance, fintech, asset management, capital markets and payments. The statement also positions the Financial Markets Dialogue (FMD) as the main channel for deepening cooperation across banking, insurance, pensions, capital markets and sustainable finance, with the next FMD due to be held in London later this year. Under the India-UK Financial Partnership (IUKFP), the ministers welcomed recommendations to improve equity capital markets connectivity, including via cross-listings, noted India’s new framework allowing direct listings in GIFT City and feasibility work on listings at the London Stock Exchange, and agreed to work on expanding rupee-denominated Masala Bond issuance and supportive policy frameworks. Further commitments cover exploring cooperation on pensions and insurance investment (including outward investment from GIFT IFSC), assessing feasibility of KYC process cooperation, convening the Fintech Joint Working Group later this year to progress recommendations including central bank digital currency and open banking, and exploring options to enhance UK-India cross-border payments in line with the G20 roadmap. On the multilateral and sustainable finance agenda, the statement reaffirms coordination in the Financial Stability Board on cross-border payments, climate-related financial risks and non-bank financial intermediation data and leverage, supports timely implementation of the International Monetary Fund’s 16th General Review of Quotas and notes the IMF Executive Board work due by June 2025 on approaches for further quota realignment under the 17th review. It also commits to extending the memorandum of understanding between His Majesty’s Revenue and Customs and India’s Central Board of Direct Taxes beyond 2025, holding a one-off UK-India Strategic Leadership Exchange on Illicit Finance, launching a new private-sector green finance workstream under the IUKFP with its first meeting later this year, and meeting again for the next Economic and Financial Dialogue in India in 2026.
HM Treasury 2025-04-08
United Kingdom's HM Treasury publishes UK-India Economic and Financial Dialogue statement to formalise FCA-IFSCA cooperation and deepen financial services ties
HM Treasury and India released a joint statement from the 13th Economic and Financial Dialogue, outlining a bilateral work programme on financial services, capital markets, payments, and sustainable finance. Key agreements include cooperation between the Financial Conduct Authority and the International Financial Services Centres Authority, enhancing equity capital markets connectivity, and expanding Masala Bond issuance. The statement reaffirms coordination on multilateral and sustainable finance issues, including cross-border payments and climate-related financial risks, and commits to extending tax cooperation and launching a new green finance workstream.