Prime Minister Narendra Modi during his meeting with his British counterpart Keir Starmer at Raj Bhavan in Mumbai on October 9, 2025. Photo courtesy: PTI
The UK government on Thursday (October 9, 2025) said Prime Minister Narendra Modi has signed a new defense deal worth 350 million pounds with United Kingdom Prime Minister Keir Starmer to buy missiles for the Indian Army. They also agreed to further their cooperation on electric engines for naval ships, the initial cost of which would be £250 million.
In a separate release, the UK government also said that 64 Indian companies have so far committed to invest £1.3 billion (or ₹15,430 crore) in the UK, indicating increased business confidence from the India-UK trade deal.
The Indian government has not shared similar data on investment commitments by UK companies in India. However, the UK government also said that Lancaster University and the University of Surrey have been given approval to open new campuses in India to help meet the growing demand for Indian students.
Talks on comprehensive arms deal
The UK government said in its statement that the missile deal paves the way for a “comprehensive complex arms partnership” between the UK and India, which is currently being negotiated between the two governments.
“This contract is set to deliver UK-made Lightweight Multirole Missiles (LMMs) manufactured in Belfast to the Indian Army, completing the government’s transformation plan to deliver another significant boost to the UK defense industry,” it said.
“A new milestone has also been reached in the UK and India collaboration on electric engines for naval ships as the two countries have signed implementation arrangements to take the initial £250 million collaboration into the next phase,” it said.
Indian investment in Britain
“Around 7,000 new jobs will be created in the United Kingdom thanks to major new deals secured by the Prime Minister during his visit to India this week,” the UK government said. “As a result, Indian investment will flow into many sectors of the UK, including engineering, technology and creative industries, driving growth and creating jobs in every region of the country from Basingstoke to Birmingham,” it said.
Major investment announcements include TVS Motor’s plans to expand its Norton motorcycle operations and invest £250 million in Solihull to develop the next generation of electric vehicles.
“Engineering company Cyient Semiconductors is investing £100 million to drive innovation in geospatial technology, mobility, clean energy and the digital domain – creating 300 UK jobs and strengthening its long-term presence in the country,” the release said.
UK PM’s visit to India live
Muthoot Finance UK Ltd, a part of Muthoot Group, plans to invest £100 million to expand its branch network across 20 locations in the UK. Hero Motors plans to invest £100 million in its e-mobility, e-cycle and aerospace divisions in the UK over the next five years.
British universities in India
The Hindu The Ministry of Commerce and Industry has been approached for details on investment announcements by UK companies in India. This report will be updated upon receiving a response.
On the first day of Mr Starmer’s visit to India, Rolls-Royce CEO Tufan Erginbilgic said his company had “deep ambitions to develop India as the home of Rolls-Royce”. However, he did not mention any specific investment details.
“The Prime Minister has confirmed that Lancaster University and the University of Surrey have been given approval to open new campuses in India to help meet the growing demand for higher education places,” the UK government said in a separate release.
published – October 09, 2025 08:28 PM IST
