Prime Minister Narendra Modi during a meeting with his British counterpart Keir Starmer, at Raj Bhavan, in Mumbai on October 9, 2025.
| Photo Credit: PTI
Prime Minister Narendra Modi has signed a new £350 million defence deal with the United Kingdom’s Prime Minister Keir Starmer to buy missiles for the Indian army, the U.K. government said on Thursday (October 9, 2025). They also agreed to take forward their collaboration on electric-powered engines for Naval ships, worth an initial £250 million.
In a separate release, the U.K. government also said that 64 Indian companies have so far committed to invest £1.3 billion (or ₹15,430 crore) in the U.K., a sign of the growing business confidence boosted by the India-U.K. trade deal.
The Indian government has not shared similar data on investment commitments by U.K. companies in India. However, the U.K. government also said that the University of Lancaster and the University of Surrey have been given approval to open new campuses in India to help meet booming demand from Indian students.
Talks on broader weapons deal
The missile deal paves the way for a “broader complex weapons partnership” between the U.K. and India, which is currently under negotiation between the two governments, the UK government said in its statement.
“The contract is set to deliver UK-manufactured Lightweight Multirole Missiles (LMM) built in Belfast to the Indian Army, delivering on the Government’s Plan for Change in another significant boost for the UK defence industry,” it said.
“A new milestone has also been reached in the UK and India’s cooperation on electric-powered engines for naval ships as both countries signed the Implementing Arrangement to advance collaboration to the next stage, worth an initial £250 million,” it added.
Indian investments in the U.K.
“Nearly 7,000 brand new jobs will be created in the United Kingdom thanks to a raft of major new deals secured by the Prime Minister during his visit to India this week,” the U.K. government said. “As a result, Indian investment will flow into a range of U.K. sectors including engineering, technology and the creative industries, driving growth and creating jobs across every region of the country – from Basingstoke to Birmingham,” it added.
Among the major investment announcements are TVS Motor’s plan to invest £250 million in Solihull to expand its Norton Motorcycles operations and develop next-generation electric vehicles.
“Engineering company Cyient is investing £100 million to boost innovation in semiconductors, geospatial tech, mobility, clean energy, and digital domains – creating 300 UK jobs and strengthening its long-standing presence in the country,” the release said.
U.K. PM’s India visit LIVE
Muthoot Finance UK Limited, a part of the Muthoot Group, plans to invest £100 million to expand its branch network to 20 locations in the UK. Hero Motors plans to invest £100 million in the U.K. over the next five years in its e-mobility, e-bicycles and aerospace divisions.
U.K. universities in India
The Hindu has reached out to the Ministry of Commerce and Industry for details on investment announcements by UK companies in India. This report will be updated if and when a response is received.
On the first day of Mr. Starmer’s visit to India, Rolls-Royce CEO Tufan Erginbilgic said that his company has “deep ambitions to develop India as a home for Rolls-Royce”. He did not, however, mention any specific investment details.
“The Prime Minister has confirmed that the University of Lancaster and the University of Surrey have been given approval to open new campuses in India, to help meet their booming demand for higher education places,” the U.K. government said in a separate release.
Published – October 09, 2025 08:28 pm IST
