New Delhi India and Britain on Thursday agreed to invest $1.2 billion in green projects and renewable energy sector in India as part of joint efforts to combat climate change.
The announcement came after a round of economic and financial talks by Chancellor of the Exchequer Rishi Sunak and Finance Minister Nirmala Sitharaman by videoconference.
Of the proposed $1.2 billion investment in India, $1 billion will come from UK development finance institution CDC, according to a statement from the British High Commission. The fund will go towards green projects in India during the period 2022-2026. CDC already has a $1.99 billion portfolio of private sector investments in India.
In May this year, the Central Board of Direct Taxes (CBDT) notified ‘CDC Group Plc’ as a sovereign wealth fund for tax breaks for infrastructure investments in India.
In addition, the Green Growth Equity Fund (GGEF), set up by both countries with a seed capital of £120 million, is growing with a fresh $200 million commitment from a range of international investors. Minister of Finance and Chancellor of the Exchequer. GGEF Fund invests in the Indian renewable energy sector.
The two countries will also make joint investments to support companies working on innovative green technology solutions.
The two countries also launched an initiative to raise private capital in sustainable infrastructure in India. These investments will support India’s target of 450GW of renewable energy by 2030, the High Commission statement said.
This step has been taken at a time when both the countries are ready for a possible trade deal. While the UK is keen on greater market access in India, New Delhi is keen on a more liberal movement of personnel between countries. India in May decided to sign an agreement with the UK for a liberal visa regime and a mobility partnership between the two countries.
The UK also welcomed India’s efforts to improve ease of doing business, including the Taxation Laws (Amendment) Act, 2021, the joint statement said. India introduced the law last month to settle 17 contentious tax disputes, including those of British companies Vodafone Plc and Cairn Energy Plc.
UK-India bilateral trade is estimated to exceed £18 billion in 2020, supporting nearly half a million jobs in each other’s economies, the High Commission statement said.
The High Commission said the countries have also set an ambitious target of doubling trade by 2030, including by negotiating a free trade agreement.
In Thursday’s conversation, Sunak and Sitharaman agreed to be ambitious when considering services in the upcoming UK-India trade talks, which could open up new opportunities for UK financial firms and give more Indian companies access to finance in the City of London. can help you reach. The High Commission said that services account for 71 per cent of UK GDP and 54 per cent of Indian GDP.
“The UK and India already have strong ties, and today we have signed important new agreements to boost our relationship and deliver for both our countries. Supporting India’s green growth is a shared priority, so I am delighted that we have announced a $1.2bn investment package, and as the UK gears up to promote investment in sustainable projects in India, the new Climate Finance Leadership Initiative (CFLI) India partnership to host COP26. for,” the High Commission statement quoted Sunak as saying.
“While trade talks are also taking place, our agreement to be ambitious when considering services will create new opportunities in both markets, supporting jobs and investment in the UK and India,” the statement said.
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