India, UK Agree to Deepen Cooperation in Capital Markets and Financial Services

India and the UK have agreed to identify priority areas for future cooperation in capital markets, with discussions focusing on expanding cross-border investment, improving Indian companies’ access to international capital and strengthening financial market connectivity.

The agreement was reached during the India-UK Financial Markets Dialogue 2026 in London. In a joint statement adopted after the meeting, both sides said the dialogue remains an important platform for advancing sustainable growth, deeper trade and investment ties and resilient financial markets.

The two countries also agreed to explore practical solutions for strengthening financial services links and increasing opportunities for cross-border equity and bond listings through GIFT-IFSC.

Officials reviewed the strengthened bilateral relationship in the context of Vision 2035 and discussed the importance of implementing the India-UK Comprehensive Economic and Trade Agreement, which entered into force on July 15, 2026.

The participants agreed to advance work across various financial-sector workstreams, with progress to be reviewed through existing bilateral mechanisms and at the next UK-India Economic and Financial Dialogue.

Insurance and pensions were among the key areas discussed. The UK outlined recent changes to its insurance regulatory framework under its Financial Services Growth and Competitiveness Strategy, along with developments in its pensions and annuity markets. India, meanwhile, highlighted its plans to expand coverage, investment and capacity in these sectors.

Both sides emphasised the importance of the Insurance and Pensions Workplan established in 2023 in supporting market development as well as bilateral trade and investment.

The two countries also highlighted the importance of competitive and resilient markets, specialist expertise, diversified sources of capital and adequate reinsurance capacity in managing complex risks and supporting long-term economic development.

They discussed opportunities for greater cooperation in reinsurance as India's regulatory framework evolves, including stronger links between the London Market and Indian insurers and reinsurers.

The two sides also exchanged experiences on pension regulation, governance, coverage and long-term savings reforms. They agreed to explore further knowledge-sharing in areas that align with their respective domestic priorities, including measures aimed at increasing participation and encouraging productive long-term investment.

India and the UK welcomed the continued internationalisation of the Indian rupee and recognised London's position as a leading offshore centre for rupee trading.

On sustainable finance, the discussions covered the importance of credible frameworks, high-quality disclosures and alignment with global standards to strengthen investor confidence and mobilise private capital for the transition towards a low-carbon and climate-resilient economy.

Fintech and financial innovation were another focus of the dialogue. India shared its experience in expanding fintech adoption and financial inclusion through digital public infrastructure, including digital identity, digital payments, central bank digital currencies and data exchange frameworks.

Both countries stressed the need to encourage responsible innovation and competition while maintaining effective regulatory oversight. They also exchanged views on the opportunities and risks posed by artificial intelligence in financial services and agreed to continue bilateral engagement and coordination through relevant international forums.

India also shared its digital onboarding process for retail financial services and agreed to provide further insights into its experience as part of continued cooperation.