Prime Minister Narendra Modi and his British counterpart, Keir Starmer, have cemented a substantial £350 million defence pact for India to procure missiles for its army. This announcement, made by the UK government, also revealed a further agreement to collaborate on electric-powered engines for Naval ships, an initiative valued at an initial £250 million.
In a parallel development, the UK government highlighted a significant surge in business confidence, confirming that 64 Indian companies have pledged to invest an impressive £1.3 billion (approximately ₹15,430 crore) in the United Kingdom. This influx of investment is seen as a direct positive outcome of the ongoing India-UK trade discussions.
While India has yet to release comparable data regarding UK company investments, the British government also shared positive news on the educational front. Both the University of Lancaster and the University of Surrey have received clearance to establish new campuses in India, a move anticipated to address the rapidly increasing demand for higher education among Indian students.
Towards a Comprehensive Weapons Partnership
The recently signed missile contract is expected to be a precursor to a much more extensive ‘complex weapons partnership’ between the UK and India. This broader collaboration is presently under active negotiation, as disclosed in a statement from the UK government.
The specifics of the contract detail the supply of UK-manufactured Lightweight Multirole Missiles (LMM) to the Indian Army, with production based in Belfast. This initiative underscores the British government’s ‘Plan for Change’ and provides a substantial boost to its domestic defence industry. Furthermore, a significant step forward has been taken in UK-India collaboration on electric engines for naval vessels, with the signing of an Implementing Arrangement to propel this £250 million joint venture to its next phase. Prime Minister Modi and PM Starmer also addressed a joint press meet regarding these developments.
Indian Firms Bolster UK Economy with Massive Investments
The UK government announced that Prime Minister Starmer’s visit to India has resulted in a wave of new agreements, poised to generate close to 7,000 fresh jobs across the United Kingdom. These Indian investments are strategically directed towards key UK sectors such as engineering, technology, and creative industries, promising economic growth and job creation from diverse regions like Basingstoke to Birmingham.
Among the notable investment commitments, TVS Motor is set to inject £250 million into Solihull to expand its Norton Motorcycles division and drive the development of next-generation electric vehicles. Additionally, engineering giant Cyient is investing £100 million to foster innovation in critical areas like semiconductors, geospatial technology, mobility, clean energy, and digital sectors, thereby creating 300 new jobs in the UK and reinforcing its established presence.
Further bolstering the UK economy, Muthoot Finance UK Limited, a subsidiary of the Muthoot Group, intends to invest £100 million to broaden its branch network to 20 locations nationwide. Hero Motors also announced a £100 million investment over the next five years, focusing on its e-mobility, e-bicycle, and aerospace divisions within the UK.
UK Universities Expand Presence in India
Requests for details on investment commitments from UK companies in India have been directed to the Ministry of Commerce and Industry. Updates will be provided as information becomes available.
During the initial day of Prime Minister Starmer’s visit, Rolls-Royce CEO Tufan Erginbilgic expressed the company’s “deep ambitions to develop India as a home for Rolls-Royce,” though specific investment figures were not disclosed.
Confirming earlier reports, the UK government’s separate release reiterated that the University of Lancaster and the University of Surrey have received official approval to establish new campuses in India, aiming to cater to the escalating demand for higher education among Indian students.