Prime Minister Narendra Modi and his British counterpart, Keir Starmer, recently solidified a substantial £350 million defense agreement. This landmark deal involves India acquiring missiles for its army from the UK. Additionally, the two nations committed to an initial £250 million collaboration focused on developing electric-powered engines for naval vessels.
Further strengthening economic ties, the UK government announced that 64 Indian companies have pledged an impressive £1.3 billion (approximately ₹15,430 crore) in investments across the United Kingdom. This surge in commitment highlights increased business confidence, partly driven by ongoing India-UK trade discussions.
While India has yet to release corresponding data on UK investments within its borders, the UK government also confirmed that two of its prominent educational institutions, the University of Lancaster and the University of Surrey, have received approval to establish new campuses in India. This initiative aims to address the significant and growing demand for higher education among Indian students.
Expanding Defense Cooperation
According to the UK government, this new missile agreement is expected to be a stepping stone towards a more extensive and sophisticated weapons partnership between the two countries, with ongoing negotiations shaping its future.
The contract specifically outlines the supply of UK-manufactured Lightweight Multirole Missiles (LMM) to the Indian Army. These missiles, produced in Belfast, represent a considerable boost for the UK’s defense sector, aligning with its government’s strategic plans.
Further advancing their partnership, both nations have signed an Implementing Arrangement to push forward cooperation on electric-powered engines for naval ships. This phase of collaboration is valued at an initial £250 million, marking a new milestone in their joint efforts.
Addressing the joint press meet with UK PM @Keir_Starmer.
— Narendra Modi (@narendramodi) October 9, 2025
Significant Indian Investments Bolster UK Economy
The UK government proudly announced that approximately 7,000 new jobs are anticipated to be created across the United Kingdom, stemming from a series of significant agreements forged during the Prime Minister’s recent visit to India. This influx of Indian capital is set to invigorate various UK sectors, including engineering, technology, and creative industries, stimulating growth and employment from Basingstoke to Birmingham.
Key investment highlights include TVS Motor’s commitment of £250 million in Solihull. This investment will fuel the expansion of its Norton Motorcycles operations and support the development of cutting-edge electric vehicles.
Additionally, engineering firm Cyient plans to inject £100 million to enhance innovation across semiconductors, geospatial technology, mobility, clean energy, and digital sectors. This move is expected to generate 300 new jobs in the UK and solidify Cyient’s established presence there.
Further contributions come from Muthoot Finance UK Limited, a subsidiary of the Muthoot Group, which intends to invest £100 million to expand its branch network to 20 locations across the UK. Similarly, Hero Motors is set to invest £100 million over the next five years in its burgeoning e-mobility, e-bicycles, and aerospace divisions within the United Kingdom.
UK Universities Expand Reach into India
Requests for details on investment commitments from UK companies in India have been directed to India’s Ministry of Commerce and Industry. Further information will be provided as it becomes available.
During the initial day of Prime Minister Starmer’s visit, Rolls-Royce CEO Tufan Erginbilgic expressed the company’s strong aspiration to establish India as a significant hub for Rolls-Royce operations, though specific investment figures were not disclosed at the time.
In a separate announcement, the UK government confirmed that the University of Lancaster and the University of Surrey have received clearance to open new campuses in India. This move is designed to help satisfy the country’s rapidly growing demand for higher education opportunities.