Commenting on th decision, Brown said: "This is a further welcome sign that the UK and India's financial services relationship continues to develop. The role played by this sector is crucial to our respective economies."

The liaison office will promote the interests of UK-based financial services. Under the City "brand" the City of London Corporation promotes and upports the financial and related services sector throughout the UK (regardless of parenthood, in effect acting as a "de facto trade association" for the wider industry. As such it is not confined to the "Square Mile" of the City of London and the surrounding business cluster.

The specific functions of City Representation in Mumbai would include: Promoting the services of the City to Indian public and private sector customers. These services include the raising of capital, insurance, asset management, infrastructure finance and consultancy, London's exchanges, business education and training and legal & advisory services.

To facilitate the business development of City firms by providing support for their visits - through making introductions, arranging programmes, providing briefing material and making available space for meetings.

To gain and disseminate information on market opportunities for City firms.

To work with the British High Commission to identify formal or informal barriers to market access for financial and related business services, so that action to overcome them can more readily be taken by the relevant authorities.

To contribute to the promotion of the UK as a physical location for representation and investment by Indian financial services companies within the European time zone.

To organise financial services related Workshops/Seminars with eminent finance professionals from India and the UK.

To deal with the Indian media on City of London marketing and promotion issues.