Make in India, finance in UK: Harriett Baldwin

Interview with UK Economic Secretary to the Treasury

As part of the Make in India week, United Kingdom and the host country are working together to augment the financial relations. UK Economic Secretary to the Treasury Harriett Baldwin, in an interview with Sanjay Jog, says India is a bright spot in the global economy, and UK government is ready to offer its help in developing the National Investment and Infrastructure Fund. Edited excerpts:

What is your take on Make in India? How can both countries (India and UK) further increase cooperation?

India is a bright spot in the global economy. I am here — besides for the Make in India week — to pursue the economic and financial dialogue between the two countries, with a message of financing the initiatives in the UK.

I know there are ambitious plans to develop India’s infrastructure and to attract direct investment into the country. I’m here to make sure we can work with the Indian government, regulators and also, importantly, the Indian private sector.

How can India and the UK consolidate their relationship in the financial sector?

In November last year, there was a great announcement about how London was famous for “James Bond, Brooke Bond and soon Masala Bond”. (Prime Minister Narendra Modi had referred to the famous fictional spy and the tea brand during his speech in London) That’s one of the big topics. All the exciting growth that will happen in India over the next decade will be very good for foreign capital.

As a leading financial centre, London will be an attractive location to successfully issue rupee-dominated (masala) bonds. I met a number of people about this, to ensure that London is the first choice for listing these bonds.

We have also been working with the Indian government for many projects in the insurance sector. Last year, the government increased the foreign direct investment (FDI) ceiling in insurance to 49 per cent. This is a very exciting development. Insurance companies have requested the regulator to allow them to increase capital input.

What is your take on the banking sector?

India has a vigorous banking sector. In the UK, we aim to be the pre-eminent global financial centre, and to be an attractive place for banks to operate, have their headquarters, and invest. We are looking forward to Indian banks expanding their operations in the UK.

I met Reserve Bank of India Governor Raghuram Rajan. It is very important that the banking regulators (of both the countries) work closely.

Has the Indian government done enough to spurt the growth of bond, debt and financial markets?

India has an ambitious plan of crowding in investment in the infrastructure sector. We are very excited about to work together of exploring ways to develop together in the formation of National Investment and Infrastructure fund. We hope that human and actual capital we can crowd in through London, which is the centre where global finance meets. We also hope to bring an additional investments that India will clearly need in terms of its ambitious plan in infrastructure.

The India UK Financial Partnership Forum  has come out with range of reports with practical suggestions we policy makers can take on board. One of the areas the Forum is looking at is where projects have failed.

The Forum could work together in the fields of reinsurance, international use of rupee, the role of financial technology, financial inclusion, investor protection and green finance.