The U.Ok. India Infrastructure Financing Bridge (UKIIFB), an initiative launched by the Indian and the U.Ok. governments in September 2024, marked its first anniversary by launching a report in the City of London, the monetary district of the U.Ok. capital, on Monday (September 8, 2025) morning.
However, a year since a handful of initiatives had been recognized for funding, they’re now not in the pipeline and have been changed with eight suggestions themed round de-risking funding alternatives in India.
Those main the initiative are hoping the second year will probably be completely different, with $2 trillion wanted in infrastructure funding by 2030 to satisfy the nation’s wants. However, changes are wanted to make India extra aggressive in the worldwide funding panorama. The second year of the Bridge may even have a particular give attention to the renewal vitality sector.
Chris Hayward, who’s the policy chief of the City of London Corporation, referred to as the report a “compelling case for change” that outlines “Indian infrastructure projects more investible”. The Corporation represents the U.Ok. lead for the UKIIFB, whereas NITI Aayog, India’s official policy assume tank, is the India lead.
Mr. Hayward, recent from a go to to India, believes that the regulatory surroundings beneath the Narendra Modi authorities is “definitely moving in the right direction” however “there’s still work to be done”, he stated, citing his discussions final week with the insurance coverage trade in Hyderabad.
Recommendations in the UKIIFB report embody aligning the Indian procurement course of with globally recognised frameworks, (such because the U.Ok.’s Five Case Model) in addition to aligning with world ESG requirements. India may even want to handle operational dangers for initiatives and the notion of unpredictability and opacity in building, as per the report.
The infrastructure sector is perceived to be dominated by a number of massive companies, as per the report. This lack of mid-sized companies results in an absence of competitors and stifles innovation.
B.V.R. Subrahmanyam , the CEO of NITI Aayog, appeared to have discovered the fact-finding mission over UKIIFB’s first year helpful. He factors to the discovering of mid-sized companies for example.
“You have actually put your fingers on one of the biggest problems of the Indian economy,” he stated throughout remarks on the report’s launch. There are simply 60,000 mid-sized companies in India, with about 100-200 workers, in line with Mr. Subrahmanyam.
“So we don’t have a pyramid,” he says, evaluating India’s company-size profile to an hour-glass as an alternative. “It’s pinched in the middle.”
Mr. Subrahmanyam highlighted India’s younger workforce and it’s excessive financial development charge. He additionally stated India was a take a look at case for different nations, in phrases of getting to handle local weather change whereas navigating financial growth.
Another problem for overseas traders, as per the report, was income safety and simplified repatriation of cash.
Asked if a bilateral funding treaty, which India and the U.Ok. are at the moment negotiating, would assist appeal to investments, Mr. Subrahmanyam says that there isn’t a doubt treaties are useful however overseas capital can nonetheless discover a strategy to India if it desires. Money can movement by way of jurisdictions which have treaties with India, he suggests, citing Singapore and South Korea.
“So if it’s protection people are looking for, it’s already available. The monies flow through other jurisdictions. The origin of money is the same,” he says.
The UKIIFB report nonetheless recommends addressing tax insurance policies in order that overseas funds are handled extra equally to home funds. One instance is a suggestion to alter laws round withholding taxes on overseas alternate lending from offshore entities, comparable to subsidiaries of U.Ok. banks.
India’s High Commissioner to the U.Ok. was additionally current on the occasion on Monday (September 8, 2025).
