Chancellor George Osborne said "good days are coming" for the UK's relationship with India as he joined Foreign Secretary William Hague on a mission to strengthen trade links.

The two Cabinet ministers are on a two-day visit to India during which they will meet with key players in the administration in New Delhi - including recently elected prime minister Narendra Modi - as well as leading business figures.

They are following in the footsteps of a series of foreign visitors - including the French foreign minister and the Russian deputy prime minister - who have arrived to pay court to the new premier since his landslide victory in May.

Fears that the ascent to power of Mr Modi - seen as a hardline Hindu nationalist - would trigger a new outbreak of communal violence in India have so far proved unfounded.

Mr Osborne paid tribute to the premier and the "formidable team of reformers" he has assembled.

Speaking in Mumbai, Mr Osborne hailed the decision by automotive giant Mahindra to invest £20 million in new research and development facilities at Farnham and Donington for the next generation of their electric vehicles.

The Chancellor also announced that Indian pharmaceutical company Cipla is to invest up to £100 million in the UK.

He said: "To adopt a phrase from Prime Minister Modi: good days are coming for the India-Britain relationship.

"Good days are coming for the investment we make in each other's economies.

"Good days are coming for the trade between our two trading nations.

"Good days are coming for the financial partnership we can forge to build, literally, the infrastructure of the future."

He set out ambitions for London to play a leading role as a gateway for Indian firms to access global capital markets.

And he added: "Just as Britain is now a key partner of China in the internationalisation of the renminbi, I want to see how we can help you develop the rupee into the great international currency I believe it has the potential to become."

Mr Osborne said India was "on an exciting journey of reform" under Mr Modi's new government.

"I believe there to be no more reliable companion on that journey than the UK," he said.

"Let us link hands. Embrace the future together."

Mr Hague announced plans to strengthen educational ties between the UK and India with an expansion of the Chevening scholarship programme.

The number of Indian students enrolled at UK universities has fallen in recent years, with the Government's immigration curbs blamed for the drop, but Mr Hague insisted there was "no limit" on those who could study in Britain.

He said: "We want to be a leading partner as prime minister Modi presses ahead with his plans for development and growth benefiting all Indians.

"We have our own experience of turning around our economy and we want to work with you to accomplish your goals across the board.

"We want to connect India with leading British companies that have the skills, expertise and experience to help you achieve the infrastructure projects, the investments in science and innovation, and the improved healthcare your government is planning. I know the Chancellor will address this in much more detail.

"Second, we want to strengthen our educational links because we both benefit hugely from the flow of students, researchers, ideas and expertise.

"That is why the UK has welcomed almost 100,000 students from India over the past five years; why we have set aside £50 million under our Newton fund for new joint research to tackle global development challenges; and why we have developed a new programme to send 25,000 young British people to study, volunteer and gain work experience in India over the next five years.

"But we are not stopping there. In this, the 30th anniversary year of the Chevening Scholarship programme, I am delighted to announce that the UK will quadruple the budget for young people with leadership potential to study at world-class British universities, and mid-career professionals to take specialist courses.

"Last year we awarded fifty scholarships; next year we will offer 150, making this our largest Chevening scholarship programme anywhere in the world.

"But not only that, we will also expand our programme of Great Awards, adding 130 new grants so that next year 500 Indian students can access generous support to take degrees in the UK.

"Let me be clear: there is no limit to the number of qualified Indian students who can study at British universities and no limit to the number that can work in graduate employment."

Mr Hague said the UK would continue to support India's efforts to secure a permanent seat on the UN Security Council and said the two countries had strengthened counter-terrorism co-operation and started a "valuable dialogue" on cyber policy.