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India to buy missiles worth £350 million from U.K. under new defence deal; 64 Indian firms commit to invest in the U.K.

10 Oct 2025
2 min

India-UK Defence and Economic Partnership

Prime Minister Narendra Modi and UK Prime Minister Keir Starmer held a meeting in Mumbai on October 9, 2025, resulting in several key agreements, particularly in the defence and economic sectors.

Defence Agreement

  • India signed a £350 million deal with the UK to purchase missiles for the Indian army.
  • The agreement includes UK-manufactured Lightweight Multirole Missiles (LMM) built in Belfast.
  • This deal is part of a broader complex weapons partnership under negotiation between the two countries.

Naval Collaboration

  • An initial £250 million collaboration on electric-powered engines for naval ships was also agreed upon.
  • This represents a new milestone in UK-India naval cooperation.

Economic Investments and Collaborations

The UK government announced significant investments by Indian companies, boosting the UK's economy:

  • 64 Indian companies committed to invest £1.3 billion in the UK, creating nearly 7,000 new jobs.
  • Key sectors receiving investment include engineering, technology, and creative industries.
  • TVS Motor plans a £250 million investment in Solihull to expand Norton Motorcycles and develop electric vehicles.
  • Cyient is investing £100 million to enhance innovations in semiconductors and clean energy, creating 300 UK jobs.
  • Muthoot Finance UK Limited aims to expand its branch network with a £100 million investment.
  • Hero Motors plans a £100 million investment in e-mobility, e-bicycles, and aerospace sectors over five years.

Education and Cultural Exchange

  • The University of Lancaster and the University of Surrey received approval to open campuses in India to meet the demand for higher education.

No specific investment details from UK companies in India were shared by the Indian government at the time of the meeting.

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