Policy Chairman Mark Boleat said in response to the budget: India is a top market for British firms and we are committed to investing in India over the long term. Particularly for the City of London it is heartening to see this budget emphasising the Modi government’s commitment to the long-term sustainable development of India’s financial markets, through committing to the creation of the bankruptcy code, amendments to the government securities act and the merging of the Forward Markets Commission with SEBI, which is a positive move towards reducing regulatory complexity. 

Increased opportunities for foreign investors through access to a wider range of asset classes is another encouraging sign, building on the considerable progress in opening up the financial markets to institutional investment over the past 10 months. Allowing investment from overseas brings enormous benefits in the form of increasing talent and expertise in the market and fostering innovation. For India, we expect UK institutional investors to play a role in partnership with leading domestic institutions, for the mutual benefit of both countries. However, as with all legislation, the devil is in the detail – and it will be important to watch the implementation of these policies carefully.