India has urged UK companies to invest in the insurance industry, while the UK has given Indian companies a direct listing on the London Stock Exchange. This year, India increased the foreign direct investment cap from 49% to 74%. The government announced that corporations will be able to list on overseas exchanges without also being listed on the domestic market.
On Thursday evening, the India-UK Financial Markets Conversation conducted its maiden meeting. The four themes of the government-to-government discussion were GIFT City, banking and payments, insurance, and capital markets. After the government session, private sector partners were invited to join the conversation. The discussion was established in October 2020 during the 10th Economic and Financial Dialogue.
The effect of Covid-19 and capital market cooperation were among the topics considered by India and the United Kingdom in the insurance business. A fruitful discussion regarding the prospects for greater cross-border business ensued, which included an update from India on the direct listing policy’s implementation. Both parties agreed that increasing financial services collaboration between India and the UK, as two service-driven economies, is a huge opportunity.
In London, India and the United Kingdom met to discuss banking and payments. Both parties praised the financial sector for playing a critical role in sustaining stability throughout the Covid-19 outbreak. They also discussed cross-border collaboration in this arena to encourage banks to improve their cyber resilience. The outcome of the meeting was praised by India’s finance ministers.