India and the United Kingdom have jointly announced the launch of the Infrastructure Financing Bridge during the 12th Economic and Financial Dialogue (EFD). This collaborative initiative signifies the continued commitment of both nations to work closely together to unlock substantial infrastructure investment opportunities in India.
A joint statement issued by Finance Minister Nirmala Sitharaman and UK’s Chancellor of the Exchequer Jeremy Hunt outlines the primary objectives of this partnership:
1. Leveraging UK Expertise: The statement highlights that the UK has significant expertise in financial and project management, making it a valuable partner for India in infrastructure development.
2. India’s Investment Potential: Recognizing India’s status as an investment powerhouse in technology, fintech, and green transition, the collaboration aims to tap into India’s pivotal role in driving global economic growth.
The UK-India Infrastructure Financing Bridge (UKIIFB):
The formal launch of the UKIIFB, led jointly by Niti Aayog (a policy think tank in India) and the City of London, is a centerpiece of this collaboration. The UKIIFB’s primary objective is to unlock infrastructure investment opportunities and utilize the City of London’s expertise in structuring and phasing major infrastructure projects.
Long-Term Investment Focus:
The partnership seeks to secure long-term investments for vital infrastructure sectors in India. UKIIFB stakeholders are committed to building a diverse investment and financing system characterized by stability, sustainability, and manageable risks.
Sustainability and Environmental Focus:
This landmark collaboration places a strong emphasis on sustainable infrastructure development, prioritizing environmentally friendly projects that align with the core principles of the Sustainable Development Goals.