England is looking to deepen collaboration on the financial technology (fin-tech) space with India and to forge comprehensive links between financial regulators of both the nations later this year, visiting British chancellor of the exchequer Philip Hammond said today.
Hammond, on a two-day visit to participate in the Indo-British economic and financial dialogue, said India is his first port of call outside Europe since London began the Brexit negotiations last week.
"We have announced a deepening collaboration on fin- tech, which would help forge closer commercial ties between our companies and establish comprehensive links between our regulators," Hammond told a UK-India Fin-tech conference here.
"Our collaboration will benefit ambitious fin-tech firms in both the countries which are looking for opportunities to expand their businesses," he added.
He said there is huge potential for both the countries in this area, and pointed out that India has 220 million active smartphone users, which is over three times the British users.
"New fin-tech payment firms, more financial lenders, and insurance players are all entering the market. These firms are crucial in helping the Reserve Bank achieve its target of 90 per cent population having access to banking services by 2034," Hammond said.
Further, through forging links between the regulators, both countries can share information about innovations in their respective markets, he said.
Listing financial services at the heart of the dialogue, the minister said Britain is looking to use its strength and depth of this sector for the benefit of India's growing economy.
"British companies have invested more in India since 2000 than the US or any other European nation, and investment from British companies counts for 1 in 20 Indian jobs in the organised private sector," he said making a case for more investments.
He also said Britain attracts the maximum investments from Indian companies than the rest of the EU put together.
Making a special mention of the Tata Group, he said, "Indian investors such as the Tatas are among the biggest employers in his country, transforming British businesses with their focused management and long-term investment as we've seen so clearly in the case of Jaguar Land Rover."
Britain also welcomed the plan of NHAI to issue masala bonds in London in the next few months and Ireda's expected green bond issuance on the London Stock Exchange within six months, he said.
"In the past year we've seen the creation of a whole new market in the world's first masala bonds issued in London raising over USD 1.5 billion. To date almost 80 per cent of all masala bonds have been issued in London. We will see even more very soon from the Indian Renewable Energy Development Agency, and National Highways Authority of India," he stated.
Besides fin-tech, both the countries have also discussed steps to boost bilateral collaboration in green finance, free trade agreement, and tax evasion.
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