Is There a Vast Potential for UK Firms to Invest in India’s Defence Sector?

New Delhi, July 11 (NationPress) The UK India Business Council (UKIBC) recently shed light on the prospects, hurdles, and strategies to enhance bilateral cooperation between the UK and India in the defence arena.

The UKIBC report suggests that UK companies that forge long-term partnerships with local Indian businesses, boost local capabilities, and engage in joint innovation are poised for success in India's rapidly evolving defence landscape.

Titled “Unlocking strategic defence opportunities: UK–India engagement,” the report seeks to pinpoint opportunity gaps that inhibit UK firms in India. To bridge this gap, it offers actionable recommendations for businesses, governmental bodies, and industry organizations aimed at amplifying UK involvement in aerospace and defence in India.

With India emphasizing self-reliance in defence through initiatives like 'Make in India' and 'Atmanirbhar Bharat', the report outlines clear steps for UK defence firms to emerge as significant partners in India's defence modernization efforts.

It also delves into how UK government policies can further facilitate bilateral trade and innovation in this critical sector.

India's aspirations in defence and aerospace create a distinctive chance for innovation-driven, long-term partnerships with reliable nations such as the UK. This report provides insights to the UK government aimed at fortifying commercial relations and aligning strategic objectives.

Recommendations include enhancing government-to-government relations, strategic communication and industry collaboration, promoting co-development, co-production, and tailored solutions, and improving technology transfer, co-creation of intellectual property, and defence R&D cooperation.

The report also urges UK firms to adapt better to Indian defence procurement frameworks while advising India's Ministry of Defence on refining its acquisition procedures.

Furthermore, it calls for establishing a UK-India defence MSME hub.

Recommendations for UK defence firms include investing in local R&D and manufacturing, forming joint ventures with Indian entities to build local supply chains, accessing procurement opportunities, and integrating India into both UK and global supply chains.

Additionally, it suggests that UK firms utilize their strengths in AI, Cybersecurity, and Aerospace Technology, focusing on emerging sectors aligned with India's strategic requirements.

Another suggestion is to collaborate with state governments, exploring partnerships in defence corridors (such as Uttar Pradesh, Tamil Nadu, and Karnataka) for incentives and infrastructure.

Kishore Jayaraman, OBE, India Chair of UK-India Business Council, commented, “India’s goal to be a leading hub for defence manufacturing and innovation presents a timely and strategic opportunity for the UK. As trusted partners with shared values and a history of collaboration, the UK and India are uniquely positioned to co-create the next generation of defence and aerospace technologies.”

“This report aims to provide both strategic insights and practical advice for UK firms looking to navigate India's evolving defence ecosystem. The message is clear — those who invest in long-term partnerships, local capabilities, and joint innovation will be best positioned for success,” he concluded.