India and the UK agreed on a USD 1.2 billion investment in green projects and renewable energy to boost India’s green growth ambitions at the 11th India-UK Economic and Financial Dialogue between Finance Minister Nirmala Sitharaman and her British counterpart Rishi Sunak, driving forward the bilateral agenda of an Enhanced Trade Partnership.
Sitharaman and Sunak, who met virtually for the annual summit, signed off the USD 1.2-billion package of public and private investment in green projects and renewable energy in India.
The deal includes a USD 1 billion investment from CDC, the UK’s development finance institution in green projects in India, joint investments by both governments to support companies working on innovative green tech solutions, and a new USD 200 million private and multilateral investment into the joint Green Growth Equity Fund which invests in Indian renewable energy.
A new Climate Finance Leadership Initiative (CFLI) India partnership has also been agreed to mobilise private capital into sustainable infrastructure in India, including clean energy like wind and solar power and other green technologies.
“Supporting India’s green growth is a shared priority so I’m pleased that we’ve announced a USD 1.2 bn investment package, and launched the new CFLI India partnership, to boost investment in sustainable projects in India as the UK gears up to host COP26,” said Sunak.
The UK also welcomed India’s recent decision to lift the Foreign Direct Investment (FDI) cap in the insurance sector from 49 % to 74 % which will help British firms to take greater ownership of their operations in India.