00:28 GMT +317 November 2019
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    Britain's Chancellor of the Exchequer Philip Hammond (R) speaks during a joint news conference with India's Finance Minister Arun Jaitley in New Delhi, India April 4, 2017.

    India Opens £500M Green Fund Investment to UK Post Brexit

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    India and the United Kingdom have set up a joint £500 million Green Growth Equity Fund which will increase the flow of funds to the Indian infrastructure sector and provide global investors, including ones from the UK, an investment opportunity with better returns.

    New Delhi (Sputnik) — With gross returns pegged in the 14-16% range, India and the UK will anchor-invest up to £120 million each in the Fund which will target around £500 million initially, with the potential to unlock much more in the future.

    The fund has come about despite disagreement between India and the UK over student immigration and intra-company transfers. “The Fund will invest in mid to large-sized companies in the green infrastructure space in India primarily in renewable energy, energy distribution/transmission, clean transportation, water treatment, waste management,” said an official of the Indian Ministry of Finance in a statement.

    The Narendra Modi government has set up the National Investment and Infrastructure Fund (NIIF) to catalyze capital from international and domestic investors into infrastructure and allied sectors in India. The Modi government has committed $3 billion to be managed by NIIF Limited through one or more funds to be set up in partnership with non-government investors.

    The UK has been pushing India since long for a free trade agreement and other treaties to sustain in the post-Brexit era. UK Chancellor of the Exchequer Philip Hammond attended the 9th UK-India Economic and Financial Dialogue in Delhi on Tuesday.

    India conveyed to the UK several times that education will define future bilateral engagement. Last November, India had asked British Prime Minister Theresa May to expedite free trade agreement process to compensate possible loss due to Brexit and had said there should not be selective free trade agreement as the UK is trying to do so on student visas.

    The bilateral trade between India and the UK stands at $14 billion and is declining.


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