London: Britain's Chancellor of Exchequer George Osborne plans to unveil 1 billion pounds worth of commercial deals with India on the first day of trade talks between the two countries here on Monday.

Finance Minister Pranab Mukherjee will have extensive talks with Osborne in this regard.

The talks follow the visit of a trade delegation to India last year, which was led by British Prime Minister David Cameron.

In a statement before Monday's meeting, the Chancellor of the Exchequer said, "Britain is now making the largest foreign investment in India. It shows that British companies are competing with the best in the world, despite some skeptical voices, and is good for growth in Britain."

The deals include approval for BP to invest 4.4 billion pounds in India's Reliance Industries, which will be the biggest single foreign investment in the sub-continent.

According to a report, BP's investment, which is being made in Reliance's oil and gas blocks, could grow to be worth as much as USD 20 billion (12.2 billion pounds), according to the Treasury.

The Treasury says trade between the two countries has grown by 20 per cent since Cameron's trip to India.

UK's Coalition government has said it is determined to boost trade with India, China and Brazil as a means of pulling the country out of a recession. However, the timing is awkward for the government, the report said.

Britain's three biggest oil companies including BP are set to reveal huge profits totalling almost USD 15 billion for the past three months as a result of soaring oil prices.

The figures are likely to provoke public anger, since UK petrol prices have reached near-record highs despite the government's promises to help reduce them.

Quoting analysts, the report said Royal Dutch Shell could this year equal or exceed its record annual profit of USD 27.5 billion registered in 2008, which is the highest amount ever made by a British company in one year.

Mukherjee is accompanied by department of economic affairs secretary R Gopalan, chief economic adviser Kaushik Basu and Sebi Chairman U K Sinha. The UK-India Economic & Financial Dialogue was launched in January, 2007.

The meeting will focus on the UK-India infrastructure partnership and strengthening of UK-India financial sector reforms.

Stepping up ties between the UK and India on education and skills, structural policy reforms and strengthening of India-UK financial sector collaboration are high on the agenda for the dialogue.

(Agencies)