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The second meeting of the Ministerial-level India-UK Economic and Financial Dialogue was held in London on 11th August, 2008. The Indian side was led by Shri P. Chidambarm, Finance Minister and the UK side by Mr. Alistair Darling, Chancellor of the Exchequer.

Chancellor Alistair Darling hosted a working lunch in honour of the Finance Minister and the visiting delegation where the global macro economic issues were discussed in the context of the rising fuel, food and energy costs. The matter of climate change and enhancing cooperation in the filed of renewable sources of energy was also discussed.

Both the Finance Minister and the Chancellor had a one to one meeting in which it was agreed to undertake a joint study on non-tariff barriers to trade, including domestic regulations in services, and how they could be removed. Both sides also acknowledged the promising start to the work on intellectual property as joint co-chairs of the Intellectual Property Rights and Innovation work stream within the G8 Heiligendamm Process.

The two Ministers signed a Memorandum of Understanding to encourage sharing of best practices in the development of Public Private Partnerships.

As climate change is a global challenge facing the world economy, it was decided that both the Finance Ministries will work together to reduce GHG emissions without compromising growth and development. It was also agreed to work towards the creation of a larger and deeper carbon market, to facilitate emissions reductions as required under the UNFCCC through public and private finance and to explore how to overcome the barriers to progress in this area. Both sides also decided to explore the possibility of providing the necessary financial flows and technology transfers to developing countries.

Shri Chidamabaram's packed programme included a breakfast meeting with senior institutional investors and followed by a round-table interaction with senior executives representing top companies in the field of international financial services. Minister utilized these opportunities to indicate what the Indian Government is doing with regard to the near-crisis situation created by the huge and sudden increase in oil prices, and the connected turbulence in the food and financial services sectors. He also underlined India's determination to carry on with its short term priorities of containing inflation while managing growth, and in the medium and long term, to continue to give the highest priority to agriculture and education.