Reimagining the UK–India Partnership in a Changing Global Order
Dr. Kishore Jayaraman, Group Chief Executive Officer, UK India Business Council, 0
The UK–India partnership is transitioning into a new phase of strategic and economic partnership. Going forward, UK based companies can take advantage of India's affordable manufacturing by utilizing India for large-scale production, moving away from an emphasis on low-cost back-office functions to forming strategic partnerships for manufacturing and research and development. The lower labor costs, vast talent pool, and initiatives from the government such as the Production-Linked Incentive (PLI) scheme offer financial benefits for UK firms to expand production effectively while upholding quality standards. This also presents opportunities for collaborative development and manufacturing of components, particularly in advanced industries like aerospace and defense, and enables UK businesses to tap into India's substantial market demand. In this exclusive interview with CEO Insights, Kishore Jayaraman, UK India Business Council shares his perspective on how UK–India partnership is transitioning into a new era and how the relationship can be strengthened for everyone’s benefit.
How is the partnership between the UK and India evolving? How is the UKIBC aerospace and defense group enhancing its collaborations with India?
The UK–India partnership is moving into a new phase of strategic and economic depth. In the latest data, the bilateral trade in goods and services reached £44.1 billion in the four quarters to the end of Q1 2025, with UK exports to India at £17.5 billion and UK imports from India at £26.6 billion.
Within this evolving environment, our Aerospace & Defense Industry Group is playing an active role. By bringing together leading UK and Indian firms, facilitating government-industry dialogues, and organizing sector-specific trade missions and workshops, the group is promoting joint ventures, technology transfer and manufacturing partnerships aligned with “Make in India” and UK export ambitions.
The aim is to ensure these rising trade numbers translate into high-impact collaborations in aerospace and defense, deepening industrial ties and strengthening both nations’ supply-chains and capabilities.
Also Read: India’s Military Alacrity for Modern Threats
As UK and Indian firms are already collaborating on advanced manufacturing and defense technology, how can UK firms benefit from India’s cost-effective manufacturing?
UK and Indian companies are increasingly leveraging each other’s strengths to create globally competitive partnerships. India’s cost-effective and high-quality manufacturing base offers UK firms a powerful opportunity to scale innovation and production.
By combining UK design, R&D, and advanced technology with India’s manufacturing efficiency and skilled workforce, businesses can enhance productivity, reduce costs, and access fast-growing markets in Asia and beyond.
Through UKIBC’s Aerospace and Defense Industry Group, we’re seeing partnerships evolve from traditional trade to true co-development — where UK firms localize production, build supply-chain capability in India, and collaborate on next-generation systems under Make in India and Atmanirbhar Bharat.
Recently, UKIBC released a landmark report titled “Unlocking strategic defense opportunities: UK–India engagement”, highlighting opportunities, challenges, and recommendations to deepen bilateral cooperation between the UK and India in the defense sector.
The detailed report, derived from academic case studies, government reports, industry insights and expert interviews, aims to identify opportunity gaps that are hindering UK firms in India. To close this gap, the report provides recommendations for better leveraging aerospace and defense opportunities in India.
As India continues to prioritize self-reliance in defense the report identifies concrete steps for UK defense firms to become meaningful partners in India's defense modernization agenda. It also provides insights into how the UK Government can enhance policy alignment to unlock bilateral trade and innovation in this sensitive and strategic sector. India’s defense and aerospace ambitions present a unique opportunity for long-term, innovation-led partnerships with trusted nations like the UK.
What should the leaders and government do to improve the UK-India relationship?
With bilateral trade increasing year-on-year, doubled since before pandemic, supported by strategic visits- including the UK PM’s delegation in October- we are seeing the partnership reaching new heights. There is immense political impetus to collaborate and strengthen the people-to-people bridge between the two countries. Also, it matters when the fourth and sixth largest economies in the world align on trade agreement.
We are hoping the CETA is illustrative of the positive momentum in the UK-India relationship, the commitment and ambition of both Governments, and the opportunities for greater trade, investment and collaboration between our countries.
There has been tremendous policy impetus by the Indian government to ensure a level playing field. However, in our member consultations, we gauge that ease of doing business optimizations such as shorter timelines for approvals and a more consistent, transparent approach across Government Departments, States and regulators for clearances are also important.
Also Read: SCO Summit 2025: Outcomes of Modi-Xi Meeting
And overall, continued efforts to provide a level-playing field allowing all businesses in India including international companies to operate and access the same opportunities would send a strong signal on a progressive investment climate.
What does the future hold for the relationship between the UK and India?
Both the countries have renewed their commitment towards a deeper collaboration. With the India–UK Free Trade Agreement (FTA) signed, it opens up significant avenues of cooperation that stand to benefit both countries across key sectors.
In services, India’s IT, legal, and consulting firms will gain greater market access, while UK companies will find expanded opportunities in India’s fast-growing digital, education, and fintech spaces. The FTA also provides a strong foundation for increased investment flows, offering regulatory certainty and protections that particularly support mid-sized businesses.
In manufacturing and innovation, Indian companies will benefit from technology transfer and R&D collaboration, especially in sectors like green tech and pharmaceuticals, while the UK can tap into India’s scale and production capabilities.
The agreement is expected to enhance mobility of professionals by easing visa restrictions and recognizing qualifications, facilitating the exchange of skilled talent. Sustainability is another vital area, with both nations prioritizing cooperation on clean energy and climate finance.
What is your advice to future leaders in this industry?
India’s ambition to become a leading defense manufacturing and innovation hub presents a timely and strategic opportunity for the UK. As trusted, like-minded partners with shared values and a strong history of cooperation, the UK and India are uniquely placed to co-create the next generation of defense and aerospace technologies.
Also Read: US Tariffs on India an Economic Boon?
I strongly suggest, industry stalwarts to invest in India-based R&D and Manufacturing: Position for co-development and IP-sharing. Form Joint Ventures with Indian OEMs/SMEs: Build local value chains, access procurement pipelines, and ensure compliance with indignation norms.
Leverage UK’s Strengths in AI, Cyber and Aerospace Tech: Focus on emerging areas where UK capabilities can align with India’s strategic needs.
Engage with State Governments: Explore partnerships in various sectors for incentives and infrastructure.
What should the leaders and government do to improve the UK-India relationship?
With bilateral trade increasing year-on-year, doubled since before pandemic, supported by strategic visits- including the UK PM’s delegation in October- we are seeing the partnership reaching new heights. There is immense political impetus to collaborate and strengthen the people-to-people bridge between the two countries. Also, it matters when the fourth and sixth largest economies in the world align on trade agreement.
India’s ambition to become a leading defense manufacturing and innovation hub presents a timely and strategic opportunity for the UK
We are hoping the CETA is illustrative of the positive momentum in the UK-India relationship, the commitment and ambition of both Governments, and the opportunities for greater trade, investment and collaboration between our countries.
There has been tremendous policy impetus by the Indian government to ensure a level playing field. However, in our member consultations, we gauge that ease of doing business optimizations such as shorter timelines for approvals and a more consistent, transparent approach across Government Departments, States and regulators for clearances are also important.
Also Read: SCO Summit 2025: Outcomes of Modi-Xi Meeting
And overall, continued efforts to provide a level-playing field allowing all businesses in India including international companies to operate and access the same opportunities would send a strong signal on a progressive investment climate.
What does the future hold for the relationship between the UK and India?
Both the countries have renewed their commitment towards a deeper collaboration. With the India–UK Free Trade Agreement (FTA) signed, it opens up significant avenues of cooperation that stand to benefit both countries across key sectors.
In services, India’s IT, legal, and consulting firms will gain greater market access, while UK companies will find expanded opportunities in India’s fast-growing digital, education, and fintech spaces. The FTA also provides a strong foundation for increased investment flows, offering regulatory certainty and protections that particularly support mid-sized businesses.
In manufacturing and innovation, Indian companies will benefit from technology transfer and R&D collaboration, especially in sectors like green tech and pharmaceuticals, while the UK can tap into India’s scale and production capabilities.
The agreement is expected to enhance mobility of professionals by easing visa restrictions and recognizing qualifications, facilitating the exchange of skilled talent. Sustainability is another vital area, with both nations prioritizing cooperation on clean energy and climate finance.
What is your advice to future leaders in this industry?
India’s ambition to become a leading defense manufacturing and innovation hub presents a timely and strategic opportunity for the UK. As trusted, like-minded partners with shared values and a strong history of cooperation, the UK and India are uniquely placed to co-create the next generation of defense and aerospace technologies.
Also Read: US Tariffs on India an Economic Boon?
I strongly suggest, industry stalwarts to invest in India-based R&D and Manufacturing: Position for co-development and IP-sharing. Form Joint Ventures with Indian OEMs/SMEs: Build local value chains, access procurement pipelines, and ensure compliance with indignation norms.
Leverage UK’s Strengths in AI, Cyber and Aerospace Tech: Focus on emerging areas where UK capabilities can align with India’s strategic needs.
Engage with State Governments: Explore partnerships in various sectors for incentives and infrastructure.