UK to invest in the Indian Infrastructure Projects
Finance minister Arun Jaitley and his UK counterpart George Osborne on Tuesday agreed on a Pound one billion line of credit for infrastructure project developers in India. This line of credit will be available to those developers who are keen to avail credit for importing inputs from UK at competitive rates.
A joint India-UK statement stated that Jaitley and the UK Chancellor of the Exchequer also agreed to collaborate on developing India’s corporate bond market and to exchange tax related information automatically from 2017.
The proposed line of credit is from UK Export Finance (UKEF) and it will be used to support Indian infrastructure projects such as the Bengaluru-Mumbai Economic Corridor (BMEC). This way it will improve the bilateral ties between both the nations and UK will get good returns on its investments. India Inc. needs the investment to fund the infrastructure projects and this will be a win-win situation for both the nations.
10 global banks are in discussions with UKEF to deliver government funded loans through a £3bn direct lending scheme. It is expected that more banks will join them in the coming weeks. This will provide competitive finance to the purchasers of UK exports in India and will help both the economies to flourish.
Source- The Financial Express
Bengalore Mumbai Economic Corridor, Indian Infrastructure Projects, UK Export Finance, UK to invest in India, £3bn direct lending scheme
