UK to invest $1.2 bn in India for renewable energy projects

The UK government told the media that the announcement, which comes ahead of the UK hosting the COP26 climate conference in November, would likely help push India's green growth.

The package includes a $1 billion investment from CDC, the UK?s development finance company in renewable projects in India and joint investments by both governments to encourage firms working on innovative green tech solutions. The package also comprises a new $200 million private and multilateral investment into the joint Green Growth Equity Fund, which invests in Indian renewable energy.

Both nations have also welcomed the Climate Finance Leadership Initiative (CFLI) launch, which will be led by a group of leading financial companies accountable for $6.2 trillion of assets and chaired by the UN Special Envoy on Climate Ambition and Solutions, Michael Bloomberg.

UK Finance Minister Rishi Sunak told the media that these significant new agreements would enhance the India-UK relationship and deliver for both nations.

He added that with trade negotiations coming up, India and the UK's agreement to be ambitious regarding services would generate employment investments in both nations.

The UK-India bilateral trade reached over ?18 billion in 2020 and helped about half a million jobs in the two economies. Both the countries intend to double mutual trade by 2030, by negotiating a Free Trade Agreement.

The UK, at the Economic and Financial Dialogue on Thursday, welcomed the recent decision of India to lift the Foreign Direct Investment (FDI) cap in the insurance sector from 49% to 74%, which will boost British companies to take greater ownership of their operations in India.

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