The British and Indian governments have secured a new memorandum of understanding (MoU), which aims to improve cultural exchanges between the two countries over the next five years.

Culture secretary Jeremy Hunt and Jawhar Sircar of the Ministry of Culture in India signed the agreement in the presence of each country's respective Prime Ministers - David Cameron and Manmohan Singh. Among the commitments outlined in the MoU is the development of a new cultural exchange programme in each country, as well as the exchange of best practice in media, broadcasting and information services.

The agreement is also designed to encourage the sharing of skills and the digitisation of missing parts in libraries and archives, as well as increasing the number of exhibition exchanges and reciprocal visits. Hunt said: "This agreement will lead to a fantastic array of cultural activity over the coming years and I'm delighted that already new exhibitions by Anish Kapoor have been secured, along with a new Hay Festival of Literature in Kerala, a new alternative rock festival in cities across India and a host of other exciting projects."

Sircar added: "The heads of the major cultural institutions of the UK and those of India met across the table, for the first time on such a scale after Independence. The sincerity on both sides was very apparent and we are positive that some of the dream projects will finally materialise."