Jeremy Hunt has concluded his first international visit as Chancellor to Bengaluru, India, for the first G20 Finance Ministers and Central Bank Governors meeting held under India’s 2023 Presidency.
The Chancellor, alongside Andrew Bailey, the Governor of the Bank of England, attended a meeting of G7 Finance Ministers and Central Bank Governors on Thursday 23 February.
They were joined virtually by Ukrainian Finance Minister Serhiy Marchenko. Their statement sent a strong message of condemnation for Russia’s war of aggression against Ukraine, announced an increase of financial support for the Ukrainian government to a total of US$39 billion in 2023 and committed to continue supporting vulnerable countries hardest hit by the economic impact of the war.
On Friday, the UK announced a fresh wave of internationally co-ordinated sanctions and trade measures, to further restrict Russia’s capability to wage war in Ukraine both now and in the future. The Chancellor also attended the first G20 Finance Ministers and Central Bank Governors meeting under the Indian Presidency.
He condemned Russia’s brutal acts in the strongest terms, emphasising– like many other Ministers present – that securing peace was the most important action for global growth. He also underscored the need for bilateral official creditors and private sector to urgently help address low and middle-income country debt vulnerabilities in developing countries; the importance of multilateral development banks boosting lending from their existing balance sheets; and called on the G20 to fulfil its pledge to channel $100 billion of IMF Special Drawing Rights in support of developing countries.
The Indian Presidency issued a Chair’s statement at the end of the meeting. It highlighted, among other things, the continued need to fight inflation, and the importance of supply-side policies, especially those that increase labour supply, boost growth and alleviate price pressures. There was also G20 consensus, including China, on the need for swift resolution of existing debt restructuring cases and to work on the impacts of food and energy insecurity on the global economy.
While in Bengaluru, the Chancellor had productive bilateral meetings with U.S. Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, French Minister of Economy and Finance Bruno Le Maire and Kristalina Georgieva, Managing Director of the International Monetary Fund. He also met with Australian Treasurer Jim Chalmers.
At a meeting with Indian Finance Minister Nirmala Sitharaman, both sides agreed to make further progress on the UK-India Free Trade Agreement and deepen bilateral economic and financial ties. They agreed to make swift progress on setting up the next UK-India Economic and Financial Dialogue.
The Chancellor took the opportunity whilst in Bengaluru to meet with business leaders, home to India’s fast-growing tech hub. He visited the offices of Indian consultancy and tech multinational Wipro, which employs over 4,000 people in the UK.
Chancellor of the Exchequer Jeremy Hunt said: “Meeting fellow Finance Ministers face to face is an excellent opportunity to make real progress on the key global economic issues of our time.
“I first visited India 38 years ago, and it’s been fascinating to see how much the country has changed in this time – there are positive lessons to be learnt from their successful rapid development. It’s been great to hear from Indian technology business leaders here in Bengaluru how they are pushing the country’s economy forward, and I look forward to further collaboration between India and the UK as we continue to trade and create jobs – delivering on the government’s plan to grow the economy”
While speaking at the meetings, the Chancellor set out the UK government’s intention to protect the most vulnerable from cost-of-living pressures, whilst maintaining fiscal sustainability with debt falling and not adding to inflationary pressure.
He added that the upcoming Spring Budget on 15 March will drive economic growth , focusing on skills, business and infrastructure investment and research and innovation, as well as reviewing regulations of the UK’s key growth industries.
