The U.K. India Infrastructure Financing Bridge (UKIIFB), an initiative launched by the Indian and the U.K. governments in September 2024, marked its first anniversary by launching a report in the City of London, the financial district of the U.K. capital, on Monday (September 8, 2025) morning.
However, a year since a handful of projects were identified for investment, they are no longer in the pipeline and have been replaced with eight recommendations themed around de-risking investment opportunities in India.
Those leading the initiative are hoping the second year will be different, with $2 trillion needed in infrastructure investment by 2030 to meet the country’s needs. However, changes are needed to make India more competitive in the global investment landscape. The second year of the Bridge will also have a special focus on the renewal energy sector.
Chris Hayward, who is the policy chief of the City of London Corporation, called the report a “compelling case for change” that outlines “Indian infrastructure projects more investible”. The Corporation represents the U.K. lead for the UKIIFB, while NITI Aayog, India’s official policy think tank, is the India lead.
Mr. Hayward, fresh from a visit to India, believes that the regulatory environment under the Narendra Modi government is “definitely moving in the right direction” but “there’s still work to be done”, he said, citing his discussions last week with the insurance industry in Hyderabad.
Recommendations in the UKIIFB report include aligning the Indian procurement process with globally recognized frameworks, (such as the U.K.’s Five Case Model) as well aligning with global ESG commitments. India will also need to address operational risks for projects and the perception of unpredictability and opacity in construction, as per the report.
The infrastructure sector is perceived to be dominated by a few large firms, as per the report. This lack of mid-sized firms leads to a lack of competition and stifles innovation.
B.V.R. Subrahmanyam , the CEO of NITI Aayog, appeared to have found the fact-finding mission over UKIIFB’s first year useful. He points to the finding of mid-sized firms as an example.
“You have actually put your fingers on one of the biggest problems of the Indian economy,” he said during remarks at the report’s launch. There are just 60,000 mid-sized firms in India, with about 100-200 employees, according to Mr. Subrahmanyam.
“So we don’t have a pyramid,” he says, comparing India’s company-size profile to an hour-glass instead. “It’s pinched in the middle.”
Mr. Subrahmanyam highlighted India’s young workforce and it’s high economic growth rate. He also said India was a test case for other countries, in terms of having to address climate change while navigating economic development.
Another challenge for foreign investors, as per the report, was revenue protection and simplified repatriation of money.
Asked if a bilateral investment treaty, which India and the U.K. are currently negotiating, would help attract investments, Mr. Subrahmanyam says that there is no doubt treaties are helpful but foreign capital can still find a way to India if it wants. Money can flow through jurisdictions that have treaties with India, he suggests, citing Singapore and South Korea.
“So if it’s protection people are looking for, it’s already available. The monies flow through other jurisdictions. The origin of money is the same,” he says.
The UKIIFB report nevertheless recommends addressing tax policies so that foreign funds are treated more similarly to domestic funds. One example is a recommendation to change regulations around withholding taxes on foreign exchange lending from offshore entities, such as subsidiaries of U.K. banks.
India’s High Commissioner to the U.K. was also present at the event on Monday (September 8, 2025).
Published – September 08, 2025 07:25 pm IST
