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India inks £350-mn deal with U.K. to buy missiles of global stability

Why in News ?

India and the U.K. have signed a £350-million defence deal for missiles, marking a strategic milestone in India-U.K. defence cooperation. The agreement includes procurement of Lightweight Multirole Missiles (LMM) for the Indian Army and collaboration on electric-powered naval engines. This follows high-level discussions between Prime Minister Narendra Modi and U.K. PM Keir Starmer in Mumbai, highlighting expanding bilateral ties across defence, technology, and education.

Relevance

  • GS II – International Relations:
    • Bilateral defence and technology partnership with the U.K.
    • Strategic cooperation in education and research sectors.
  • GS III – Defence & Economy:
    • Modernisation of armed forces and advanced weapons acquisition.
    • Boost to defence manufacturing, Make in India, and technology transfers.
    • Economic diplomacy via investment flows and educational partnerships.

Context and Background

  • Part of broader India-U.K. strategic partnership, described as an “important pillar of global stability.”
  • Defence deal aligns with India’s modernisation of armed forces and push for domestic and international collaboration.
  • U.K. universities (Lancaster & Surrey) approved to open campuses in India, reflecting increasing education and technology cooperation.
  • 64 Indian companies committed £1.3 billion (~15,430 crore) investment in the U.K., showing strengthened economic ties post trade deal.

Details of the Defence Deal

  • Value: £350 million (missiles) + £250 million for electric-powered naval engines.
  • Procurement: Lightweight Multirole Missiles (LMM) manufactured in Belfast.
  • Purpose:
    • Strengthen Indian Army’s missile capabilities.
    • Broaden defence partnership towards “complex weapons collaboration.”
    • Boost bilateral defence R&D and industrial linkages.
  • Strategic Objective:
    • Enhance interoperability and technology exchange.
    • Support Make in India by leveraging foreign technology and investment.

Strategic and Geopolitical Significance

  • Global Stability: Strengthens India-U.K. defence alignment amid turbulent global scenario.
  • Regional Security: Enhances India’s deterrence posture in the Indo-Pacific region.
  • Technology Collaboration: Paves way for joint development of advanced missile systems and naval technology.
  • Defence Industry Boost: Encourages investments, technology transfer, and R&D in India’s defence sector.

Economic and Industrial Implications

  • Indian firms invest £1.3 billion in U.K., enhancing bilateral trade confidence.
  • Defence procurement fosters indigenous supply chains via Make in India initiative.
  • Joint ventures in defence manufacturing can create jobs and skill development opportunities.
  • Electric naval engine collaboration supports green technology adoption in defence.

Conclusion

The defence deal enhances India-U.K. strategic and technological cooperation while modernising India’s armed forces. It also strengthens regional security and boosts Make in India through joint R&D and industrial linkages.


October 2025
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