Oliver Letwin: London committed in financing India’s journey to becoming an economic power

Investment, infrastructure, smart cities, bonds and financial services were the top agendas for Cabinet Minister and Duchy of Lancaster, Oliver Letwin’s three day visit to India from 27-29th July.

Mr. Letwin’s visit was the first visit by a British minister to India after the polls in the UK in May. Mr. Letwin carried the message of the British Government’s commitment to an ‘enhanced partnership with India’.

Mr. Letwin has visited India before. According to him one of key objectives of this visit was to carry forward some of the discussions that the UK and India had been having for a long time on economic and financial cooperation. A part of his agenda was also to deliver some things jointly when the Indian PM Narendra Modi visits the UK in November.

On his arrival to India Mr. Letwin said:

“I would like to reiterate the British government’s commitment to work towards ‘an enhanced partnership with India’. Our government launched the GREAT Collaborations campaign to complement Prime Minister Modi’s vision of Make in India. The UK and India have formal economic dialogue established and we are, of course, very much looking forward to Prime Minister Narendra Modi visiting Britain later this year.”

Since business and finance were the top focus of Mr. Letwin’s India visit the first city on his itinerary was Mumbai- the Indian financial nerve centre. He met the Chief Minister of Maharashtra Devendra Fadnavis, to discuss further strategic engagement between Maharashtra and the UK. The UK is already engaged with the government of Maharashtra after the UK India Business Council (UKIBC) entered an agreement with Maharashtra Industrial Development Corporation (MIDC) on broad co-operation on ease of doing business. Mr. Letwin discussed how the UK can co-operate to help achieve the Maharashtra government’s ambitions around ease of doing business, smart cities, financial services, skills and education.

Mr. Letwin also undertook a series of high level calls including on the Governor of the Reserve Bank of India Raghuram Rajan, the Chairman of the State Bank of India Arundhati Bhattacharya, Anand Mahindra and Deepak Parekh the Chairman of HDFC. The minister participated in a round table with CEOs of leading Mumbai financial institutions and discussed the issue of rupee denominated assets in London. He said:

“The Indian economy is very impressive now and I think the whole world is impressed to the extent in which the Indian government is making business easier. The moves that have been taken to deal with corruption and social security are very impressive.”

In the national capital, New Delhi, MR. Letwin met key ministers in PM Modi’s cabinet including the Indian Finance Minister, Arun Jaitley and Railways Minister Mr. Suresh Prabhu. He expressed the UK Government’s keenness in raising of finance for Indian infrastructure with the two Indian Ministers. He explained that London could raise external rupee financing for Indian infrastructure which s could be advantageous for both the countries. He also said:

“India is going to be a great economic power in the next 20, 30 or 40 years. So we need the city of London to be involved in raising finance for India. We have made very considerable progress in the last few years.”