India-UK Relations

India-UK Relations: 

India and the United Kingdom share a complex yet evolving relationship that has transformed from colonial ties to a modern strategic partnership. The bilateral relationship, elevated to a Comprehensive Strategic Partnership in 2021, now stands as an important pillar of global stability amid contemporary geopolitical uncertainties.

Historical Evolution of India-UK Relations

Colonial Legacy and Early Post-Independence Period (1947-1990s)

The foundation of India-UK relations was fundamentally shaped by over two centuries of British colonial rule, which ended with India’s independence in 1947. Despite the peaceful transfer of power, the relationship in the immediate post-independence period was marked by contradictions and complexities.

India’s decision to remain within the Commonwealth as a Dominion in 1947 and later as a Republic in 1950 reflected a pragmatic approach to maintaining some historical connections while asserting independence. However, the early decades were characterized by several irritants that strained bilateral ties.

The Cold War period (1947-1990) witnessed significant divergence in foreign policy approaches. India pursued non-alignment and developed close ties with the Soviet Union, while the UK aligned with NATO and the United States. This ideological divide created friction, with Britain often opposing Indian positions on various international issues, including India’s incorporation of Goa (1961) and Sikkim, and later condemning India’s nuclear tests.

Britain’s historical tilt toward Pakistan remained a persistent source of tension. Unlike other major powers like the US and France that adopted an “India-first” strategy in South Asia, the UK remained torn between its new enthusiasm for India and the inertia of its historic preference for Pakistan. This became particularly evident during the 1965 and 1971 Indo-Pakistani wars, where Britain’s neutrality was perceived by India as tacit support for Pakistan.

Post-Cold War Transformation (1990s-2004)

The end of the Cold War and India’s economic liberalization in 1991 marked a watershed moment in bilateral relations. The disappearance of the Soviet Union removed a major source of friction, while India’s economic reforms opened new opportunities for British businesses and investment.

This period saw British Prime Ministers beginning to prioritize India as an economic partner. John Major’s visit to Delhi in 1997 signaled the beginning of renewed engagement, with subsequent leaders recognizing India’s emerging economic potential. The relationship began shifting from being primarily driven by political considerations to being focused on economic opportunities.

Strategic Partnership Era (2004-Present)

The formal elevation of India-UK relations to a Strategic Partnership in 2004 under Prime Minister Manmohan Singh and Tony Blair marked a new chapter. The Joint Declaration titled ‘India-UK: towards a new and dynamic partnership’ envisaged annual summits and regular ministerial meetings, outlining cooperation in civil nuclear energy, space, defence, counter-terrorism, economic ties, science & technology, education and culture.

Further enhancement came in 2010 when relations were elevated to an ‘Enhanced Partnership for the Future’ during Prime Minister David Cameron’s visit to India. Cameron was particularly instrumental in strengthening ties, describing the relationship as the “New Special Relationship”.

The most significant recent milestone came in May 2021 when both countries agreed to a transformational ‘Comprehensive Strategic Partnership’ and adopted the India-UK Roadmap 2030. This framework was subsequently upgraded to Vision 2035 in July 2025, setting ambitious goals for deeper collaboration across multiple sectors.

Economic Relations and Trade Partnership

Current Trade Statistics and Trends

India-UK economic relations have experienced remarkable growth in recent years. Bilateral trade has increased substantially from £15.5 billion in 2019-20 to £44.1 billion in the four quarters ending Q1 2025, representing a 10.1% increase from the previous year. India now ranks as the UK’s 11th largest trading partner, accounting for 2.4% of total UK trade.

In FY25, bilateral trade reached $23.1 billion compared to $21.3 billion in FY24, with India maintaining a trade surplus of $5.9 billion. India’s exports to the UK grew by 12.6% to $14.5 billion in FY24-25, while UK exports to India stood at $8.6 billion.

The service sector represents a crucial component of the economic relationship. Trade in services reached £17.7 billion in 2022-23, with India’s service exports valued at £11.0 billion and imports at £6.7 billion. The UK remains highly receptive to Indian IT services, financial services, and professional services.

Investment Flows and FDI

Investment constitutes a vital pillar of the economic partnership. The UK is the 6th largest investor in India with cumulative FDI inflows of $35.8 billion from April 2000 to March 2025. At the end of 2023, the stock of UK FDI in India was £17.5 billion, while Indian FDI stock in the UK reached £12.4 billion, representing a 22.2% increase from 2022.

India has emerged as the UK’s second-largest source of FDI after the United States. More than 1,000 Indian companies operate in the UK, supporting millions of jobs and contributing significantly to the British economy. Recent investments announced during Prime Minister Starmer’s visit to India in October 2025 included commitments from 64 Indian companies to invest over £1 billion, creating nearly 7,000 new jobs across various UK regions.

Comprehensive Economic and Trade Agreement (CETA)

The signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) in July 2025 represents a historic milestone in economic cooperation. Negotiations for this agreement, initially launched in 2022 under Boris Johnson’s government, continued under successive administrations and were successfully concluded under Keir Starmer’s leadership.

Key Features of CETA

The agreement encompasses several transformative elements:

Tariff Reductions: India committed to lowering tariffs on approximately 90% of UK exports, with most becoming tariff-free over the next decade. Significant reductions include cutting duties on whisky and gin from 150% to 40%, and reducing tariffs on UK cars from over 100% to 10% within quota limits. Conversely, the UK agreed to eliminate duties on about 99% of Indian exports, including textiles, leather goods, engineering products, marine products, and gems & jewelry.

Services and Professional Mobility: The FTA introduces a Double Contribution Convention, exempting professionals on short-term assignments from dual social security contributions. This provision facilitates easier movement of skilled professionals between both countries, addressing a key Indian demand in the negotiations.

Government Procurement: UK companies gain access to India’s government procurement markets in transport, healthcare, and energy sectors under specific regulatory frameworks.

Economic Impact and Projections

The CETA is projected to boost the UK’s GDP by £4.8 billion annually by 2040 and increase bilateral trade by approximately £25.5 billion annually by the same period. Both nations have set an ambitious target to double bilateral trade to $100 billion by 2030.

Key sectors expected to benefit include textiles, engineering goods, pharmaceuticals, IT services, and gems & jewelry from India, while UK sectors like advanced manufacturing, clean energy, beverages, and automotive industries are positioned for significant growth.

Defence Cooperation and Strategic Partnership

Current Defence Framework

India-UK defence cooperation has evolved into a comprehensive partnership encompassing technology transfer, joint development, military training, and strategic collaboration. The relationship operates within multiple frameworks, including the Defence and International Security Partnership (DISP) established in 2015, which focuses on counter-terrorism, cybersecurity, and defence manufacturing.

Recent Defence Agreements and Initiatives

Lightweight Multirole Missiles Deal

A landmark £350 million ($468 million) agreement signed in October 2025 provides for the supply of UK-manufactured Lightweight Multirole Missiles (LMM), also known as Martlets, to the Indian Army. These missiles, produced by Thales in Belfast, will enhance India’s air defence capabilities while supporting over 700 jobs in Northern Ireland.

The LMMs are versatile weapons systems capable of air-to-surface, air-to-air, surface-to-air, and surface-to-surface operations, with an operational range of 6 kilometers and weighing approximately 13 kilograms. This agreement paves the way for broader complex weapons partnership between both countries.

Maritime Propulsion Systems Collaboration

Both nations signed an Implementing Arrangement for collaboration on electric-powered propulsion systems for naval ships, valued at £250 million. This initiative aims to develop Integrated Full Electric Propulsion (IFEP) systems for India’s next-generation Landing Platform Dock (LPD) fleet, with goals to establish India’s first maritime Land-Based Testing Facility and deliver the LPD by 2030.

Military Training and Exchange Programs

The countries have established comprehensive military training cooperation, including the integration of Indian Air Force Qualified Flying Instructors into UK Royal Air Force training programs. This arrangement strengthens the training and education relationship between both air forces while facilitating knowledge transfer in military aviation.

Joint Military Exercises

Regular bilateral military exercises demonstrate the deepening operational cooperation:

• Exercise Ajeya Warrior: Bilateral army exercise focusing on counter-terrorism operations

• Exercise Konkan: Naval exercise between Indian Navy and Royal Navy, including carrier strike group operations

• Exercise Cobra Warrior: Multi-national air exercise with significant Indian participation

• Exercise Tarang Shakti: Air force exercise promoting interoperability

The October 2025 Exercise Konkan witnessed the participation of the UK Carrier Strike Group led by HMS Prince of Wales alongside the Indian Navy’s Carrier Strike Group led by INS Vikrant, demonstrating advanced maritime cooperation.

Defence Industrial Collaboration

The defence partnership emphasizes co-development and co-production under India’s Atmanirbhar Bharat initiative. Key collaborative areas include:

Advanced Missile Systems: Beyond the LMM deal, cooperation extends to Advanced Short-Range Air-to-Air Missiles (ASRAAM) with plans for an assembly and testing facility in Hyderabad.

Research and Development: A Letter of Arrangement between India’s Defence Research and Development Organisation (DRDO) and the UK’s Defence Science and Technology Laboratory (DSTL) facilitates collaboration on emerging defence technologies.

Technology Transfer: The UK’s creation of India-specific open general export licenses facilitates the transfer of military equipment and dual-use technologies, marking a significant shift in defence cooperation frameworks.

Strategic Maritime Cooperation

Both nations are committed to robust maritime security cooperation in the Indo-Pacific region. This includes the establishment of the Regional Maritime Security Centre of Excellence (RMSCE) under the Indo-Pacific Oceans Initiative (IPOI). The cooperation extends to grey and dark shipping information sharing mechanisms and the development of new maritime dialogue frameworks.

Challenges in Defence Cooperation

Despite significant progress, defence cooperation faces the persistent “three-I” challenge related to Indian regulations on Foreign Investment, Intellectual Property Rights, and Indigenous Content Requirements. These regulatory frameworks sometimes complicate technology transfer and industrial collaboration, requiring careful navigation to balance India’s self-reliance objectives with partnership goals.

Contemporary Strategic Priorities

Technology and Innovation Partnership

The India-UK Technology Security Initiative (TSI) launched in 2024 represents a cornerstone of contemporary cooperation. This initiative focuses on emerging technologies including artificial intelligence, semiconductors, cybersecurity, and quantum computing. The partnership leverages India’s thriving technology sector and the UK’s advanced research capabilities to drive innovation-driven collaboration.

Both countries have agreed to establish joint AI centers and connectivity innovation centers, demonstrating their commitment to frontier technologies. The cooperation extends to critical minerals supply chains, with plans for an Industry Guild and Supply Chain Observatory.

Climate and Sustainability Cooperation

Environmental collaboration forms a crucial component of the strategic partnership, particularly in renewable energy and green technology. Both nations are committed to Paris Agreement goals and have initiated cooperation on green hydrogen, clean energy grids, and the One Sun One World One Grid (OSOWOG) initiative.

The partnership addresses climate change through collaborative research, technology transfer, and joint initiatives in sustainable development, recognizing climate action as essential for global stability and economic prosperity.

Educational and Cultural Dimensions

University Campus Expansion

A major breakthrough in educational cooperation came with the announcement that nine UK universities will establish campuses in India. The University of Southampton has already inaugurated its Gurugram campus and enrolled its first cohort of students. Other institutions, including the University of Bristol, have received approval to open enterprise campuses, with Bristol’s Mumbai campus scheduled to welcome students in summer 2026.

This initiative aligns with India’s National Education Policy 2020 and aims to provide Indian students access to global-standard education domestically while promoting collaborative research and academia-industry partnerships.

Cultural Cooperation Framework

The Programme of Cultural Cooperation (POCC) signed in May 2025 establishes a comprehensive framework for cultural collaboration. The program focuses on five key areas: digital technologies for culture, exhibitions and collections, performances and events, cultural property protection, and sustainability in cultural projects.

The POCC connects India’s Ministry of Culture with the UK’s Department for Digital, Culture, Media & Sport and involves major British institutions like Arts Council England, British Museum, and Natural History Museum. This cooperation is particularly significant given that the global creative sector is projected to reach 10% of global GDP by 2030, with India’s creative economy valued at $35 billion and employing nearly 8% of its workforce.

UK-India Education and Research Initiative (UKIERI)

The flagship UKIERI program, founded in 2006, has facilitated over 25,000 academic exchanges spanning 4,500 educational institutions across both countries. Now in its fourth phase since 2023, UKIERI continues to strengthen educational and research collaboration, helping both nations achieve their knowledge ambitions.

Diaspora as a Living Bridge

The Indian diaspora in the UK, comprising over 1.8 million people (2.6% of the UK population), serves as a “living bridge” between both nations. This community contributes over 6% to the UK’s GDP despite representing only 3% of the population, demonstrating exceptional economic productivity.

The diaspora operates more than 65,000 companies across various sectors, with 19% in hospitality, 15% in healthcare and pharmaceuticals, and 13% in retail and wholesale. Their entrepreneurial success and professional achievements strengthen bilateral ties and facilitate business connections between both countries.

The significance of diaspora contributions extends beyond economics to include cultural exchange, political representation, and social integration. The election of Rishi Sunak as the first British Asian Prime Minister in 2022 symbolized the community’s political integration and representation at the highest levels.

Multilateral Cooperation and Global Engagement

Commonwealth and International Forums

Both nations collaborate extensively through multilateral organizations including the Commonwealth of Nations, World Trade Organization, and Asian Development Bank. The UK supports India’s bid for permanent membership in the UN Security Council, with Prime Minister Starmer stating it is “long overdue” and that India should take “its rightful place on the UN Security Council”.

G20 and Global Governance

The partnership has been strengthened through India’s G20 Presidency and active cooperation in global governance initiatives. Both countries work together on addressing global challenges including climate change, pandemic preparedness, sustainable development, and international security.

Indo-Pacific Strategy

The UK’s Indo-Pacific strategy aligns with India’s regional security priorities. Both nations are committed to upholding a rules-based international order and ensuring freedom of navigation in the Indo-Pacific region. This cooperation extends to maritime security, defense partnerships, and strategic coordination on regional challenges.

Future Outlook: Vision 2035

The India-UK Vision 2035, adopted in July 2025, sets ambitious goals for the bilateral relationship. This comprehensive framework builds on the Comprehensive Strategic Partnership and establishes clear milestones for cooperation across multiple sectors.

Key Pillars of Vision 2035

Economic Growth and Trade: The vision aims to create transformative economic opportunities through the CETA implementation, bilateral investment treaty negotiations, and enhanced cooperation in priority sectors including renewable energy, health sciences, financial services, and defense.

Technology and Innovation: Both countries commit to deepening collaboration in critical and emerging technologies, establishing joint research initiatives, and promoting regulatory cooperation in innovation-driven sectors.

People-to-People Connections: Enhanced cooperation on education, cultural exchange, and consular matters will better serve citizens and diaspora communities while strengthening the foundational human connections between both nations.

Global Leadership: The partnership positions both countries to address global challenges collaboratively, from climate action to international security, leveraging their combined influence as leading democracies.

Challenges and Opportunities

Persistent Challenges

Despite remarkable progress, certain challenges continue to affect the relationship. Post-colonial sensitivities occasionally surface, particularly regarding historical issues and cultural representation. Regulatory complexities in defense cooperation, particularly India’s indigenization requirements, sometimes complicate technology transfer and industrial collaboration.

Trade imbalances and market access issues require ongoing attention, despite the CETA framework. Professional mobility, particularly visa provisions, remains an area requiring careful management to balance economic benefits with domestic concerns.

Emerging Opportunities

The bilateral relationship is positioned to capitalize on several emerging opportunities. India’s trajectory toward becoming the world’s third-largest economy by 2028 creates immense potential for expanded cooperation. The UK’s post-Brexit realignment provides opportunities for deeper bilateral engagement outside EU constraints.

Technological convergence in areas like artificial intelligence, clean energy, and biotechnology offers platforms for joint innovation and global leadership. The young demographics of both countries’ populations, particularly India’s youth bulge, create opportunities for educational exchange, skill development, and entrepreneurship.

Conclusion

The India-UK relationship has evolved from a colonial past marked by asymmetry to a contemporary partnership characterized by mutual respect, shared democratic values, and complementary strengths. The Comprehensive Strategic Partnership framework, reinforced by Vision 2035, provides a robust foundation for addressing 21st-century challenges while capitalizing on emerging opportunities.

The relationship now spans multiple dimensions – from the landmark CETA trade agreement and advanced defense cooperation to cutting-edge technology partnerships and vibrant cultural exchanges. The success of this partnership demonstrates how historical adversaries can transform their relationship into a force for mutual prosperity and global stability.

As both nations navigate an increasingly complex global landscape, their strategic partnership serves as an important pillar of international stability, combining India’s dynamic growth trajectory with the UK’s institutional experience and global networks. The foundations laid through recent agreements and initiatives position the relationship for sustained growth and deepening cooperation across all sectors of mutual interest.

The India-UK partnership exemplifies how mature democracies can work together to address global challenges while pursuing their national interests, making it a model for international cooperation in an era of geopolitical uncertainty and economic transformation.

INTERNATIONAL RELATION

The Hindu