Britain's finance ministry said the agreement was reached at a meeting in London earlier on Tuesday between Osborne and his Indian counterpart Arun Jaitley.

"This will help build on the success of rupee bond issuances in London by the International Finance Corporation, and demonstrates the UK's position as a business partner of choice," the finance ministry said.

Osborne has prioritised attracting foreign bond issuers to London, and has previously promoted Britain as a location for Chinese yuan issuance and Islamic finance.

(Reporting by David Milliken, editing by Andy Bruce)