Developments in India’s Corporate Governance: Their Relevance for UK Financial Firms

Abstract

While the UK government have sought to promote the nation’s financial services in India, City firms have shown little business awareness of Indian firms today. Unsurprisingly, there have been few recent deals between City firms and their Indian counterparts. Over a few decades, the competitive advantage that City institutions established through their historical relationships in major Indian cities such as Mumbai has been eroded by the development of competing expertise from non-UK financial services. However, we report that a number of Indian financial firms remain sympathetic to collaborating with their UK counterparts. To recapture this competitive advantage would require City firms to adopt a different approach to doing business in India. This approach would involve financial firms getting close to their Indian counterparts to understand the changes that are taking place in India’s processes of decision making.

Keywords: India Corporate Governance, City Firms, Finance

JEL Classification: N25