The UK and India have concluded their 12th round of economic and financial dialogue, with both nations, expressing optimism and determination to strengthen their economic ties. UK Chancellor of the Exchequer (or finance minister) Jeremy Hunt, spoke exclusively to CNBC-TV18 on Monday, September 11, about the significance of the discussions and the potential for a Free Trade Agreement (FTA) between the two nations.

Regarding the FTA talks, Chancellor Hunt underscored the UK's commitment to an open and unrestricted deal, stating, "We want to have the most open possible deal with the fewest restrictions on trade." He emphasised that both countries were closer to reaching an FTA than ever before, while cautioning against setting public timelines that might disrupt negotiations.

Hunt said, "We're a free trade country, we believe in free trade. As the sixth largest economy in the world, this is a big market to open to Indian exporters. You will find less reluctance to remove those barriers than with other big trading blocks in the world. There's a really exciting deal to be done, but it's new territory for India, it's new territory for the UK. I think we're closer to a deal than we've ever been. That doesn't mean it's guaranteed we'll get a deal."

"Rishi Sunak has been very clear, we'll only sign a deal when it's the right deal for the UK. But I think there is a sense of momentum from the prime ministers of both countries that I haven't seen before. So I'm hopeful that we will be successful, and no timelines for this one either. If you give a timeline, you can jinx these things. So it's better not to have the public timeline. But, you know, I think there's a better chance of doing a deal both on bilateral investment and on trade that I've seen for a long time."

The dialogue primarily revolved around two key areas — infrastructure financing and trade relations. Both countries highlighted their commitment to infrastructure development as part of their transition to net-zero economies. The UK, boasting one of the world's largest financial centres, expressed its interest in channelling significant capital into Indian infrastructure projects.

Hunt emphasised the importance of removing practical barriers for international investors, ensuring they have the necessary protections when investing in India. He added, "We want to see real money flow into Indian infrastructure, and we'd like to see that happen soon."

One of the notable points of discussion was the potential for Indian companies to directly list on the London Stock Exchange. Chancellor Hunt said this initiative would allow Indian firms to benefit from raising capital internationally, further strengthening the ties between India and the UK as technology hubs. While no specific timeline was mentioned, the chancellor expressed a sense of urgency in successfully concluding these discussions.

The dialogue also touched upon cooperation in India's Gift City initiative, where the UK offered its support in developing the project into a major financial centre.

Reflecting on the recent G20 Delhi Declaration, Hunt praised India's diplomacy and its role in handling complex international situations. He expressed the UK's commitment to respecting territorial integrity and maintaining the international order that has preserved global peace since World War II.

Chancellor Jeremy Hunt outlined a vision for the UK as a scientific superpower and the world's next Silicon Valley, aiming to collaborate closely with countries like India.

Watch video for full interview

(Edited by : Shoma Bhattacharjee)