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"The two governments are in touch with each other on the matter of the extradition proceedings against Vijay Mallya," External Affairs Ministry spokesperson Gopal Baglay said in his weekly media briefing here.
"Our High Commission has been following the matter with the United Kingdom authorities," he said.
Mallya, wanted in India for defaulting on bank loans of over Rs 8,000 crore, was arrested and granted bail in London on Tuesday.
Metropolitan Police said Mallya, 61, was taken into custody after attending a central London police station.
The Westminster Magistrates' Court later gave him bail on a 650,000-pound bond. The next hearing of the case will be on May 17.
A Metropolitan Police statement said officers from the Extradition Unit arrested Mallya on an extradition warrant from India.
"I must point out that what is going on right now in the United Kingdom is that it is an internal process in response to the extradition request made by the Indian government," Baglay said in the briefing.