The United Kingdom and India have signed a landmark agreement in London to facilitate and unlock sustainable international investments into India’s ambitious infrastructure projects. The UK-India Infrastructure Financing Bridge (UKIIFB), operationalized after being initially agreed upon during the UK Economic and Financial Dialogue (EFD) last September, aims to enhance collaboration between the two countries in the areas of national highways, rapid transport, and renewable energy.
This first-of-its-kind agreement, set for an initial two-year period, is a partnership between the City of London Corporation and the National Institution for Transforming India (NITI Aayog). It will be steered by a committee of representatives from the UK Treasury, construction giants, engineering firms, and legal companies operating across both nations, with the goal of accelerating mega infrastructure projects in India.
During the signing ceremony, NITI Aayog CEO B.V.R. Subrahmanyam described the UKIIFB as a “game-changer” that not only accelerates India’s economic growth but strengthens its global position. “It connects India to its aspirations of becoming a global powerhouse,” he said. He highlighted India’s role as a major investment destination, noting that the country contributes 15-20% of the world’s incremental growth in absolute terms. With this agreement, Subrahmanyam said, London would enjoy a “first-mover advantage” in capitalizing on India’s infrastructure opportunities.
Transforming Infrastructure Investments
Subrahmanyam explained that the UKIIFB is designed to make large infrastructure projects “bid-ready” by addressing perceived risks, lowering the cost of capital, and making projects more attractive to international investors. The focus is on structuring marquee projects to meet global building and design standards, thus positioning them for international finance.
“The bridge itself is not about getting into the bidding process,” Subrahmanyam added. “It’s about bringing it to a stage where projects are then amenable to international finance.” Among the initial projects identified are the Delhi-Meerut Regional Rapid Transit System, major highway developments, and initiatives in green hydrogen and renewable energy.
Chris Hayward, Policy Chairman of the City of London Corporation, confirmed that eight projects have already been selected for the first phase. “Now we have formally committed to each other today, we can start to drive forward, hopefully at pace, because there’s a lot to be done and there’s a big agenda,” he said. Hayward emphasized the UK’s expertise in professional services and finance, making it a natural partner for meeting India’s infrastructure needs, particularly in the area of green finance to support India’s climate goals and push towards net zero.
Steering Committee and Key Goals
The newly formed UKIIFB Steering Committee, comprising experts from major organizations such as Aon, Arup, Mott MacDonald, Clifford Chance, and Larsen & Toubro, will focus on accelerating the mobilization of private sector investment into Indian sustainable infrastructure. It will also provide policymakers with recommendations for addressing barriers to international investment, develop best practices for sustainable projects, and ensure these projects are positioned to attract global capital.
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According to Indian High Commissioner to the UK, Vikram Doraiswami, the UKIIFB represents the complementarity of the UK-India bilateral economic relationship. He noted that the partnership combines the UK’s sophisticated financial sector with India’s capacity to generate sustainable, long-term returns. “It is a means for India and the UK to use the respective strengths of their systems… to offer each other the benefit of growth-based partnerships for the long-term,” he said.
As NITI Aayog and the City of London work together to design large infrastructure project proposals, the UKIIFB will play a pivotal role in enhancing the flow of private capital to India. This collaboration is expected to deepen the economic ties between the two countries, while contributing to sustainable growth in both nations.
Industry Response
Simon Harris of Mott MacDonald welcomed the initiative as an “excellent opportunity” for investors to collaborate with India’s project developers to accelerate sustainable infrastructure development. Arup’s Sowmya Parthasarathy described the agreement as a “pivotal moment” in the UK-India partnership, highlighting the potential for transforming the landscape of infrastructure investments in India.
The UKIIFB aims to bring India’s infrastructure projects to international standards, positioning them to attract large-scale investments while supporting India’s broader development goals. By fostering collaboration between private investors and project developers, the agreement is set to enhance India’s infrastructure capacity, create new opportunities for growth, and solidify the country’s global economic standing.
