UK Chancellor Jeremy Hunt marks first overseas visit at the G20 finance meet in Bengaluru

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UK Chancellor of the Exchequer Jeremy Hunt attended the G20 Finance Ministers and Central Bank Governors Meeting in Bengaluru on 23 February in his first overseas visit since taking office.

The trip aims to strengthen the already productive UK-India economic relationship and deepen ties to increase new investment and bringing new jobs to the UK. With its rich reputation for a cutting-edge tech industry, the Chancellor will be meeting Indian tech CEOs and founders in Bengaluru to explore investment opportunities and how links with India can help the UK become the world’s next Silicon Valley, building on the UK’s $1 trillion (£827 billion) tech industry.

Hunt is attending the G20 alongside the Governor of the Bank of England Andrew Bailey. Both are focused on tackling inflationary pressures. His work at the G20 will also contribute to the UK Government’s broader economic aims to halve inflation, grow the economy and reduce national debt.

India is projected to be the world’s third largest economy by 2050, with a tech industry that generated US$227 billion (£188 billion) in revenue in FY2022. It is already a significant economic partner for the UK, and the Chancellor is seeking to promote greater collaboration between the two countries.

Jeremy Hunt, Chancellor of the Exchequer, said, “I want the UK to be the world’s next Silicon Valley – this is an ambition within reach thanks to our status as a global financial powerhouse and home to world class universities and research institutions.

“We already have a $1 trillion tech industry, but we want to go further to create jobs and wealth across the UK. To help us get there, we need to deepen investment connections with like-minded countries around the world – starting with our Indian friends who are fast becoming an economic superpower in their own right.”

Alex Ellis, British High Commissioner to India, said, “The UK is working with India to solve the world’s biggest challenges, through India’s ambitious G20 Presidency. As we work towards an ambitious free trade agreement to help double UK-India trade by 2030, it is great that the Chancellor can be here in Bengaluru, India’s Silicon Valley.”

The G20 Finance Ministers meeting comes one year after Russia’s full-scale invasion of Ukraine. On this visit the Chancellor will reaffirm the UK’s unwavering support for Ukraine and discuss with other G20 members ways to address issues such as elevated global inflationary pressures and the instability in energy and food prices that are being exacerbated by the war.

Hunt and Bank of England Governor also joined a meeting of G7 Finance Ministers on Thursday, where he said, “The UK continues to stand firm in our support for Ukraine with significant military and humanitarian assistance. The sooner there is sustainable peace in Ukraine and an end to this horrific war, the sooner we can address the global economic fallout – diminishing Putin’s leverage over the UK and our friends.”

It follows the latest move on behalf of the G7, the European Union and Australia, who via a Price Cap Coalition, set caps on the price of seaborne Russian oil products effective from 5 February 2023. High-value Russian exports such as diesel and gasoline are capped at $100 while lower-value products such as fuel oil are capped at $45. The UK phased out the import of Russian oil and oil products last year.