Source: TH
Context: The U.K. India Infrastructure Financing Bridge (UKIIFB), launched in September 2024, marked its first anniversary with a report in London recommending policy changes to de-risk investments in India’s infrastructure sector.
About The U.K. India Infrastructure Financing Bridge (UKIIFB):
- What it is?
- A bilateral initiative between India and the U.K. to mobilise global private capital for India’s sustainable infrastructure projects.
- Launched in: September 2024 during the India–UK Economic and Financial Dialogue.
- Organisations Involved: NITI Aayog (lead institution) and City of London Corporation (lead institution).
- Objectives:
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- Accelerate mobilisation of international private sector investments in India’s infrastructure.
- Align Indian procurement with global best practices (e.g., UK’s Five Case Model).
- Ensure adherence to global ESG standards.
- Address barriers like revenue risks, repatriation challenges, and taxation issues.
- Functions:
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- Provide policy recommendations to improve transparency, predictability, and competitiveness of Indian projects.
- Develop knowledge and best practices for sustainable infrastructure financing.
- Facilitate joint planning and structuring of projects (e.g., highways, rapid transport, renewable energy).
- Focus on climate-resilient and green finance models.
- Significance:
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- For India: Mobilises part of the $2 trillion infrastructure investment needed by 2030, boosts mid-sized firms’ participation, and attracts long-term capital.
- For U.K.: Expands financial services and green finance leadership in a high-growth market.
