The Union finance minister, Mr Pranab Mukherjee, and the UK Chancellor of the Exchequer, Mr George Osborne, today had a bilateral meeting and later held delegation level talks aimed at boosting trade and investment in their economies.

The two sides also agreed to continue to work together in the G-20 and other international financial institutions for strong, sustainable and balanced growth. During the meeting it was decided that the next round of bilateral dialogue will be held in London in 2011.

The meeting, which came alongside the summit between the two Prime Ministers, demonstrates the importance both nations place on bilateral relationship and the ties that bind the two economies, a joint statement issued at the end of the meeting noted.

“We are positive about the longer-term prospects for the UK and Indian economies and for the potential mutual benefits of closer economic cooperation. The global economic outlook remains uncertain and we will continue to work together in the G20 and other international financial institutions on our shared international economic challenges, including through the G20 Framework for Strong Sustainable and Balanced Growth,” the statement said.

Further reform of international financial institutions to improve their effectiveness, legitimacy and accountability remains a shared priority, it said.

“We welcome the recent reforms of the World Bank and are committed to play our part in delivering a comprehensive package of IMF quota and governance reforms at the G20 Summit in Seoul, this November,” the statement added.

The two sides discussed how to boost trade and investment in the two economies, and reaffirmed their shared belief that open markets, operating through a free and fair trading regime, will be vital to sustaining future prosperity.

The delegations had a discussion on the importance of reforming the global financial system to reduce crisis to the global economy going forward. They agreed that the UK and India would collaborate in the G20, Basel Committee on Banking Supervision and Financial Stability Board fora in key areas of financial sector reform in the coming months.

They also agreed on the importance of our two governments working together to boost business opportunities between the UK and India, including actions that both governments could take to support our growing trade and investment links.

We invited members of the visiting UK business delegation to join our meeting to hear their views on how to strengthen our commercial ties and on how businesses can play a role in helping governments meet common challenges, including on financing infrastructure development.