India, UK to join hands to push financial reforms

Written by fe Bureaus | New Delhi | Updated: Jul 31 2010, 04:28am hrs
India and the UK will collaborate in the G-20 to pursue financial sector reforms, including quota and governance reforms in the International Monetary Fund and the World Bank. The two countries also reaffirmed their commitment to a free and open trading regime, according to a joint statement issued after a meeting between finance minister Pranab Mukherjee and UK chancellor of the exchequer George Osborne on Thursday.

We agreed that the UK and India would collaborate in the G-20, the Basel Committee on Banking Supervision and Financial Stability Board, in key areas of financial sector reform in the coming months, the statement said.

Osborne is a part of British Prime Minister David Camerons high-level delegation which includes seven Cabinet ministers and a big trade delegation, including representatives from BAE Rolls-Royce, Standard Chartered Bank, Balfour Beatty and the British Museum.

Expressing concern over the uncertain global economic outlook, the two countries resolved to work together to meet emerging challenges. The global economic outlook remains uncertain and we will continue to work together in the G-20 and other international financial institutions on shared economic challenges, the statement said.

Reform of international financial institutions, in order to improve their effectiveness and accountability is a shared priority, the statement added. Mukherjee and Osborne also welcomed recent World Bank reforms and said they would focus on IMF and governance reforms at the G-20 summit to be held in Seoul in November. As part of the reform, voting rights of several emerging economies, including India, were increased in the World Bank.

India and the UK also resolved to increase bilateral trades and support growing investment links between businesses. The next round of dialogue will be held in London in 2011.