India, UK agree to deepen financial markets cooperation, focus on fintech

Ziraat Times Team Report

London, October 7: India and the United Kingdom have agreed to deepen cooperation in financial markets, insurance, pensions, asset management, sustainable finance and financial technology, following the fourth India-UK Financial Markets Dialogue held in London on September 29.

The discussions brought together senior officials from India’s Ministry of Finance and the UK’s HM Treasury, along with financial sector regulators from both countries, including the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), International Financial Services Centres Authority (IFSCA), and their UK counterparts, the Bank of England and Financial Conduct Authority.

According to a joint statement released by the Ministry of Finance, both sides reaffirmed their commitment to sustainable economic growth, resilient and open financial markets, and increased bilateral trade and investment.

The dialogue reviewed financial sector reforms in both countries and identified opportunities to strengthen cross-border investment, improve market connectivity and expand cooperation in emerging areas such as artificial intelligence (AI), digital payments and green finance.

Focus on GIFT IFSC, cross-border investment

On capital markets, Indian regulators outlined reforms aimed at simplifying market access for international investors and facilitating overseas investment in sovereign and corporate debt.

Both sides discussed the growing role of Gujarat International Finance Tec-City’s International Financial Services Centre (GIFT IFSC) in mobilising international capital into India. They agreed to continue regulatory cooperation and knowledge-sharing to support its development as an international financial centre.

The discussions also covered opportunities for cross-border equity and bond listings through GIFT IFSC, alongside measures to improve capital market connectivity and expand Indian companies’ access to international capital.

The two countries agreed to identify priority areas for future capital markets cooperation ahead of the next Economic and Financial Dialogue.

Cooperation in insurance and pensions

India and the UK reviewed reforms and market opportunities in insurance and pensions, including the UK’s changes to its insurance regulatory framework and developments in pensions and annuity markets.

India outlined its ambitions to expand insurance coverage, investment and market capacity. Both sides stressed the importance of the Insurance and Pensions Workplan established in 2023 to support market development and bilateral trade and investment.

The dialogue highlighted opportunities for closer cooperation between the London insurance market and Indian insurers and reinsurers, particularly in reinsurance, as India’s regulatory framework evolves.

Participants also exchanged experiences on pension regulation, governance, coverage and long-term savings reforms, agreeing to explore further knowledge-sharing in areas aligned with their domestic priorities.

Asset management, sustainable finance on agenda

The two sides discussed developments in asset management regulation, including the UK’s work on the regulatory framework for alternative investment fund managers and reforms undertaken by SEBI and IFSCA in India.

They agreed that greater understanding of regulatory changes, investor requirements and market conditions could help facilitate cross-border investment and increase participation by Indian and UK asset managers in each other’s markets.

The discussions also covered the internationalisation of the Indian rupee, with both sides recognising London’s role as a leading offshore rupee trading hub.

On sustainable finance, participants emphasised the importance of credible frameworks, high-quality disclosures and global standards to strengthen investor confidence and mobilise private capital for the transition to a low-carbon and climate-resilient economy.

India, UK to strengthen fintech and AI cooperation

Financial technology and innovation featured prominently in the dialogue, with India sharing its experience of expanding financial inclusion and fintech adoption through digital public infrastructure.

The discussions covered digital identity, digital payments, central bank digital currencies and data exchange frameworks. India also shared its experience of digital onboarding for retail financial services and committed to sharing further information with the UK.

Both countries stressed the need to support responsible innovation and competition while maintaining effective regulatory oversight.

Participants exchanged views on the opportunities and risks associated with artificial intelligence in financial services and agreed on the value of continued bilateral exchanges and coordination through relevant international forums.

The two sides also highlighted risks to financial integrity and cybersecurity arising from the criminal use of emerging technologies, including AI-enabled fraud, data protection breaches and threats to operational resilience.

They agreed to continue cooperation between relevant authorities on the use of technology and regulatory innovation to detect and prevent financial fraud.

Push for more efficient cross-border payments

India and the UK reaffirmed their support for the G20 Roadmap for Enhancing Cross-Border Payments, discussing practical measures to reduce transaction frictions, improve transparency and increase efficiency.

They also reviewed developments in their respective retail payment infrastructures and acknowledged ongoing G20 efforts to promote interoperability and interlinkages between electronic payment systems.

Cooperation linked to Vision 2035 and trade agreement

The joint statement said both countries welcomed the constructive discussions and reaffirmed the role of the Financial Markets Dialogue in advancing cooperation on financial services, trade and investment.

Both sides also highlighted the contribution of the India-UK Financial Partnership in developing practical solutions to strengthen financial sector links.

The discussions took place in the context of the launch of Vision 2035 and the implementation of the UK-India Comprehensive Economic and Trade Agreement (CETA), which the statement said entered into force on July 15, 2026.

Participants agreed to advance work across the identified areas, with progress to be reviewed through existing bilateral mechanisms and at the next India-UK Economic and Financial Dialogue.

The previous Financial Markets Dialogue was held in December 2024.