INDIA must take an investor-centric approach to attract global funding for its growing sustainable infrastructure needs, the UK-India Infrastructure Financing Bridge (UKIIFB) said in a report released in London on Monday.
The UKIIFB, co-chaired by NITI Aayog and the City of London Corporation, completed one year this week. The group was launched in September last year to help bridge the gap between global investor interest and infrastructure projects in India.
Over the past year, the steering board of the group has consulted on projects such as national highways and regional rapid transport in India. The result is a report with proposals and recommendations to improve investor confidence and financing.
“The transformative UK-India Infrastructure Bridge, jointly steered by India's visionary policy think-tank NITI Aayog and the historic City of London Corporation, is unlocking vast international capital for India's infrastructure revolution,” said BVR Subrahmanyam, CEO of NITI Aayog and Co-Chair of the UKIIFB.
“This landmark partnership draws on India's unmatched capacity for high-growth, sustainable ventures and aligns it with the UK's proven skills in project finance and strategic execution,” he said.
“Together, we are crafting a robust framework to accelerate India's ambitious goals in smart cities, renewable energy, and connectivity,” he added.
Subrahmanyam said the collaboration under the UKIIFB strengthens India’s progress towards becoming a global economic power by combining domestic leadership with international cooperation.
The UKIIFB aims to build bilateral collaboration in project finance to meet India’s demand for sustainable infrastructure growth. Chris Hayward, Policy Chairman of the City of London Corporation and Co-Chair of the UKIIFB, said the initiative plays a “vital role” in mobilising capital for India’s critical infrastructure.
“This report makes a powerful case for action, outlining practical steps to make Indian infrastructure projects more attractive to global investors,” said Hayward, as he released the one-year report with Subrahmanyam.
“At its heart, the findings highlight a clear truth: international investors need clarity, confidence, and consistency – and India's growth ambitions deserve a financing model that matches their scale,” he said.
The report notes that India’s infrastructure demand is being driven by rapid urbanisation and a growing middle class. It adds that the target of USD 4.5 trillion investment in infrastructure by 2030 cannot be achieved through domestic investment alone.
For its second year, the UKIIFB has set out key proposals, including adopting an investor-centric approach to align with global investor priorities on risk, value and returns. It also calls for measures to address outdated perceptions of India’s infrastructure sector.
Other recommendations include aligning with global standards, enhancing transparency and risk management to build investor confidence, and creating a supportive environment for infrastructure development by fostering partnerships with local industry.
The City of London Corporation, the governing body of London’s financial district, leads the UK side of the partnership. The UKIIFB was launched as part of the UK Economic and Financial Dialogue (EFD) and is supported by a steering committee with members from the UK Treasury, construction, engineering and legal firms from both countries.
In its first year, the committee was tasked with advising policymakers on removing barriers to international private sector investment in Indian infrastructure and helping projects reach the stage where they are ready to attract investment.
(With inputs from agencies)
