UK-India Bridge for Infrastructure Finance Marks First Year

In September 2025, the UKIIFB completed its first year, which was a big step in bilateral collaboration to enhance infrastructure investment in India. Introduced in 2024, it is a partnership between the Indian government and the U.K. under the leadership of NITI Aayog and the City of London Corporation. The initial year suffered some setbacks but we are currently concentrating on reforms to minimize risks of investment as well as focus capital on priority areas, especially renewable energy.

Background and Purpose

The infrastructure requirements in India are immense as it is estimated that by 2030, it will require 2 trillion. UKIIFB was also developed to appeal to foreign investors by working on the inefficiencies and those obstacles that prevent foreign involvement. The bridge can be used to engage in policy discussion, risk assessment, and develop structures that facilitate sustainable and large-scale investments.

Challenges Identified

As UKIIFB noted in its first year, initial pilot projects were not going on as expected. Investors raised issues of regulatory complexity, risks in operations and procurement transparency. The infrastructure market in India has a few large companies that dominate the sector, and there is no platform where the mid-sized firms can innovate. It was suggested in the report that the procurement procedures of India should be aligned to the international models such as the Five Case Model of the U.K. that focuses on transparency and accountability.

Strategic Recommendations

Eight key recommendations on de-risking projects were presented by the first-year review. These include:

• Making the procurement and ESG standards in India in line with global ones.
• Making the rules regarding revenue protection and repatriation of funds simpler.
• Revision of the withholding tax policy to generate parity between foreign and domestic funds.
• Urging the middle sized companies to increase competition in the infrastructure.

Economic and Policy Context

India has an economic system that is also an hourglass with several small organizations and a few larger companies but a poor middle class. This restricts competition in the vital industries such as the construction and energy industry. The government is striving to enact more predictable laws, but additional changes are still required to bring in sustainable foreign capital.

Moving Forward: Pay attention to Renewables.

In its second year, UKIIFB will also give emphasis on renewable energy projects, which will fall in line with the climate targets and India's clean energy transitions. Through its role in instilling investor confidence and regulatory framework reform, the initiative may be central to the elimination of the infrastructure funding gap in India and the provision of sustainable growth.