Britain is committed to strengthening its bilateral relationship with India, said the U.K.’s Minister for Asia and the Pacific, Alok Sharma, in the first public address by a government figure on the topic since Prime Minister Theresa May’s visit to India last month.

Mr. Sharma also defended Britain’s visa regime, which critics have suggested could hamper bilateral ties in the future. “We think that the relationship is more important than ever,” he told a meeting of the U.K.-India Business Council on Monday evening. “Our bilateral trade is at £16 billion and there is huge potential to do even more.”

While Britain could not enter trade talks with India as it remained a member of the EU, Mr. Sharma said the two nations had commenced a dialogue on what the future could look like via a joint trade working group. The group has identified areas such as technology, advanced manufacturing, Make in India and energy as well as research in health, clean water and agriculture for cooperation. “We want Indian companies and public sector entities to see the City of London as their natural home for raising offshore finance,” he said pointing to the recent issuances of rupee denominated Masala bonds. “As India continues to develop ambitious infrastructure plans, we want to be the destination of choice for raising international funds.”

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He defended Britain’s visa regime and the recent changes in it — including plans to further toughen the visa regime for international students following a government consultation in the New Year and raise salary thresholds for those on the main work route, the Tier 2 visa, and the intra-company transfer route.

No cap

“There is no cap on the number of international students in recognised institutions in the U.K. We continue to welcome students from India. We approved 89 per cent of Indian student visas and the Home Secretary will be consulting widely on the student visa regime to ensure it is as mutually beneficial as possible,” he said.

On Monday, the Guardian reported the government was seeking to cut international student numbers to around 170,000 from 300,000 annually, quoting anonymous university sources. The government has denied it as a rumour.

Mr. Sharma also pointed to the fact that India was the only country where people could get a same-day visa. “We naturally want our visa regime to be as simple and efficient as possible, but we must also ensure that people return to their country of origin once their visa has expired.” He added the government recognised the concerns of the business community that the visa regime did not hinder the commercial ties, and would expand its registered traveller service, which allows expedited clearance at the U.K. border, to India.

Britain’s visa regime was not an issue that impacted bilateral ties, acting High Commissioner Dinesh Patnaik said at the event. Though Indian student numbers in the U.K. had dropped, this had been accompanied by sharp rises in other countries, including the U.S., Australia, Canada and New Zealand. “We are not concerned as our students have options. It is up to the U.K. to decide.”

He added businesses were by and large able to accommodate the raised costs of bringing over employees so long as the policy regime remained stable. “The question is how do we take the relationship to the next level,” he said. Ahead of Ms. May’s visit, the government had been looking to see whether she would signal that her government was keen to keep relationship on the same strong trajectory it had headed on under David Cameron. “She has given us a very clear indication that she would like to continue the growth,” he said.