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Context
A new era in India-UK relations was established by the October 2025 visit of British Prime Minister Keir Starmer to India to expand cooperation across trade, defense, education, and technology.
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Read all about: India–U.K. Free Trade Agreement l What is Diaspora Diplomacy? Explained |
Key outcomes of the UK PM visit to India
Trade and economy
Doubling bilateral trade: Target of doubling bilateral trade to $56 billion by 2030, building on the framework established by the CETA.
Private sector investment: India open the nuclear power sector to the private sector and invited UK investment.
Defence and security
Missile supply: UK signed a £350 million contract to supply India with lightweight multirole missiles, deepening their defense partnership.
Electric propulsion: Joint development of maritime electric propulsion systems for Indian naval platforms.
Maritime security: Strengthening maritime security in the Indo-Pacific region by establishing a Regional Maritime Security Centre of Excellence.
Military training: Expand military-to-military exchanges, including integrating Indian Air Force flying instructors into UK Royal Air Force training.
Technology and innovation
Artificial Intelligence: Establishing a Joint Centre for AI and a Connectivity and Innovation Centre with £24 million in initial funding.
Critical minerals: A Critical Minerals Processing and Downstream Collaboration Guild was established to secure supply chains.
Climate Technology Fund: Joint investment in a Climate Tech Start-up Fund to support innovative entrepreneurs.
Education and culture
University campuses: The University Grants Commission issued Letters of Intent for nine UK universities to open branch campuses in India.
Film production: Deal to produce Bollywood films in the UK.
Global issues
Ukraine and Middle East: Support for peace efforts in Ukraine and the US peace plan for Gaza.
UNSC reform: The UK support for India's bid for a permanent seat in a reformed United Nations Security Council.
Evolution of India-UK Relations
The Colonial Era (Until 1947)
This period established deep, though complex, connections in administration, law, education, and language.
Post-Independence Era (1947-2000s)
After India's independence, the relationship was shaped by India's leadership in the Non-Aligned Movement and its connection to the UK through the Commonwealth.
The focus was more on diplomacy and cultural ties rather than deep strategic alignment.
Strategic Partnership Era (2004-Present)
In 2004, the relationship was officially upgraded to a "Strategic Partnership." This marked a shift towards closer collaboration on economic, political, and security issues.
Structured science cooperation started to take formal shape with the UK-India Science & Innovation Task Force, and the Newton-Bhabha (Newton) partnership formalised joint research and capacity building.
Both countries launched the Technology Security Initiative (TSI) in July 2024 to align high-value tech cooperation (AI, quantum, semiconductors, biotech, telecoms, critical minerals, advanced materials) with national security and economic goals.
In July 2025, Both signed Comprehensive Economic and Trade Agreement (CETA), and adopted India-UK Vision 2035, a 10-year roadmap to deepen cooperation.
Why is the UK important to India?
Economic and Trade Partner
The partnership unites the world's 4th and 6th largest economies. The CETA is expected to double bilateral trade, which stood at $56 billion in 2024, with a target to double this by 2030. India currently holds a trade surplus.
Technological and R&D Hub
The UK's expertise in research and development is a perfect match for India's talent and manufacturing scale. This synergy is vital for India's missions in AI, quantum computing, and green hydrogen.
Strategic and Defence Partner
Both nations share a commitment to a free, open, and secure Indo-Pacific. This is reflected in growing defence cooperation, including joint exercises (Ajeya Warrior, Konkan, Indradhanush) and collaboration on advanced defence technologies through the Electric Propulsion Capability Partnership (EPCP) and the Jet Engine Advanced Core Technologies (JEACT) initiative.
Education and Startups
The UK possesses a world-class ecosystem of universities (like Oxford, Cambridge, Imperial College), research institutions, and a mature regulatory environment.
For Indian startups and tech companies, the UK serves as a strategic "proving ground"—a place to validate their products, build credibility, access to investment, and launch globally compliant companies.
The "Living Bridge" (Diaspora)
About 1.8 million-strong Indian diaspora in the UK acts as a powerful "living bridge." This community is highly influential in business, academia, and politics, contributing to both economies and promoting deep people-to-people ties.
Global Influence
As a permanent member of the UN Security Council (UNSC) and a key member of NATO and the G7, the UK is an important geopolitical partner for India to collaborate with on global issues.
India's Policy Towards the UK
Focus on Economic Growth and Self-Reliance
India views the UK as a key partner to achieve Atmanirbhar Bharat. The partnership in S&T is seen as a crucial enabler for "Make in India," especially in high-tech sectors like defence, semiconductors, and green technology.
Co-develop Critical Technologies
Move from a buyer-seller relationship to one of co-production and co-development, especially in defence, AI, semiconductors, and biotechnology.
Leveraging S&T for National Missions
India is actively aligning the UK partnership with its ambitious domestic initiatives like the National Quantum Mission, India AI Mission, and the Anusandhan National Research Foundation (ANRF), to leverage British expertise and capital to accelerate these national priorities.
Post-Brexit Opportunity
India sees the UK's post-Brexit "Global Britain" strategy as an opportunity to negotiate a more favorable and modern trade and investment relationship, independent of the complexities of the broader EU.
Deepen Economic Integration
Fast-track the implementation of the CETA to boost market access for Indian sectors like textiles, leather, and pharmaceuticals and attract UK investment into infrastructure and energy.
What are the Challenges in India-UK Relations?
Limited Professional Mobility
Even after the signing of the CETA in July 2025, provisions for the movement of professionals remain limited. India seeks easier access for its doctors, nurses, IT experts, and engineers to work in the UK, while London maintains tight visa controls due to domestic security and economic concerns.
Absence of a Bilateral Investment Treaty (BIT)
CETA focuses mainly on goods and services, but a legally binding BIT is still missing. Without it, investors face uncertainty in dispute settlement and investment protection, discouraging large-scale British investments in India’s infrastructure and manufacturing sectors.
UK’s Carbon Border Adjustment Mechanism (CBAM)
The UK plans to launch its CBAM by January 2027, which will tax carbon-intensive imports such as steel and aluminium. This policy risks making Indian exports less competitive in the UK market. CETA has not yet addressed this issue.
Restricted Market Access
India continues to limit foreign participation in legal and financial services, which the UK views as barriers to a truly open trade environment. Reforming these sensitive areas requires domestic policy adjustments.
Divergence in Global Positions
Despite shared democratic values, India’s strategic autonomy leads to differing stands on global issues like Ukraine and West Asia. These differences need sustained diplomatic dialogue to maintain alignment on multilateral platforms.
Delays in Defence Co-production
The 10-year Defence Industrial Roadmap outlines collaboration on jet engines (JEACT) and electric propulsion systems (EPCP). However, slow technology transfers and bureaucratic barriers continue to delay implementation.
Way Forward for Strengthening India–UK Relations
Finalize the Bilateral Investment Treaty (BIT)
A BIT establishes a secure legal framework for investment protection, encouraging the UK (India’s 6th largest investor, with investment of $35 billion between April 2000 – September 2024) to inject capital into India’s infrastructure and manufacturing sectors.
Enhance Skill Mobility
Both sides must pragmatically expand mobility provisions beyond the current limited quotas, by using flexible visa arrangements (like those for chefs and yoga instructors agreed in CETA).
Full Implementation of Defence Roadmap
India and the UK must expand the 10-year Defence Industrial Roadmap by progressing co-development and co-production projects The $468 million missile supply deal and collaboration on maritime electric propulsion systems for the Indian Navy demonstrate strong commitment in this area.
Indo-Pacific Maritime Security
Establishing the Regional Maritime Security Centre of Excellence (RMSCE) under the Indo-Pacific Oceans Initiative (IPOI) to strengthen coordination on non-traditional threats and deepen military exercises like Konkan 2025.
Counter-Terrorism
Strengthen security and intelligence cooperation to counter radicalization, violent extremism, and the misuse of emerging technologies for terrorist purposes, addressing India’s core security concern.
Technology and AI
Invest jointly in critical and emerging technologies. The two nations launched a Joint AI Research Centre and a Connectivity and Innovation Centre to connect UK industrial expertise with India’s talent and scale.
Climate and Green Finance
Operationalize the new India-UK Climate Finance Initiative and the Climate Tech Start-up Fund, to unlock green growth financing and support innovative entrepreneurs working on climate technology and sustainable development goals.
Collaboration on Global Governance
Work together on reforming global bodies like the UN Security Council, WTO, and WHO to make them more representative and effective.
Collaborate on creating ethical and regulatory frameworks for emerging technologies like AI and quantum computing, ensuring they are used for the global public good.
Conclusion
The India-UK partnership, rooted in science, technology, and shared strategic goals, is shaping a future of innovation-driven growth. Together, both nations can advance mutual prosperity, tackle global challenges, and build a sustainable, resilient world marked by cleaner air and healthier lives.
Source: HINDUSTANTIMES
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PRACTICE QUESTION Q. The Indian diaspora is termed the 'living bridge' in bilateral ties. Evaluate the diaspora's role in strengthening the India-UK relationship. 150 words |
The partnership encompasses trade, defence, education, technology, and culture, with growing collaboration in sectors like clean energy, quantum technology, and infrastructure.
"Vision 2035" is a long-term strategic plan to guide bilateral relations, focusing on economic growth, education, technology, and defence.
The diaspora is referred to as a "living bridge", strengthening bilateral economic, cultural, and political links. British Indians are one of the most successful ethnic communities and hold prominent positions in UK politics, medicine, and business.
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