India, UK seek freer bilateral trade

Finance Minister P Chidambaram today asked Britain to allow Indian banks to open more branches in that country.

At a joint press conference with visiting British chancellor of exchequer Gordon Brown, Chidambaram cited the example of Standard Chartered Bank of the UK, the largest foreign bank in India, saying the bank could continue to expand its business organically.

"We hope the UK will give some more branch licences to Indian banks," the finance minister said.

Brown and Chidambaram met here today at the first official level meeting of the India-UK Economic and Financial Dialogue.

Responding to a question on Vodafone's bid for Hutchison-Essar, Brown, who is on a three-day visit to India, said he has been assured of a level playing field to companies in the race for acquiring Indian mobile phone operator Hutchison Essar.

Brown, who is widely seen as Britain's Prime Minister in waiting, said Chidambaram has indicated that India would introduce a Bill in the forthcoming session of Parliament next month that seeks to increase the limit on foreign direct investment (FDI) in insurance companies from 26 per cent to 49 per cent. The Bill also seeks to allow companies with unique structures like Lloyds of London to undertake reinsurance in India.

Both countries have agreed to explore opportunities through public private partnerships (PPPs) in sectors like health and education, besides enhancing cooperation in the banking, financial, infrastructure and information technology sectors.