India inks critical mineral, climate change and defence deals with UK

Modi, Starmer seek to build on FTA signed on July 24

India and the United Kingdom (UK) on Thursday announced a dozen outcomes across sectors ranging from education and critical minerals to climate change and defence cooperation. These include a $468 million (350 million pound) contract under which the UK will supply lightweight multirole missiles to India, and an agreement, worth $333 million (250 million pounds) initially, to take their collaboration on electric-powered engines for naval ships to the next stage.

 

Prime Minister Narendra Modi and his visiting UK counterpart, Keir Starmer, met in Mumbai on Thursday morning and sought to inject fresh momentum into the strategic and economic partnership between the two countries. The meeting aimed to build on the free-trade agreement signed on July 24 during Modi’s visit to Chequers. 

“In today’s time of global uncertainty, our growing partnership stands as an important pillar of stability and economic progress,” Modi said at one of the three events — including a joint press conference — that the two leaders addressed during the day.

 

In his remarks, Starmer described the signing of the UK-India Comprehensive Economic and Trade Agreement (Ceta) as a “breakthrough moment” that would reduce tariffs, expand market access, and generate employment. He said India was on course to become the world’s third-largest economy by 2028, and the UK was well positioned to be a partner in this growth story. 

 

The two countries also agreed to revitalise the joint economic trade committee to facilitate the early implementation of Ceta and drive economic growth and job creation in both nations. Starmer’s visit, accompanied by the largest ever UK business delegation, “reflects the new energy and broad vision” in the partnership, Modi said, adding: “India’s dynamism and the UK’s expertise together create a unique synergy.”

 

In London, Starmer’s office highlighted that his India visit secured 64 Indian investment projects, worth 1.3 billion pounds, which were expected to generate 6,900 new jobs across diverse sectors in the UK.

 

Indian officials said the two sides were establishing centres for advanced research & development in areas like artificial intelligence (AI) and climate change. They are also launching the second phase of the UK-India Critical Minerals Supply Chain Observatory, which includes setting up a new satellite campus at the Indian Institute of Technology–Indian School of Mines (IIT-ISM), Dhanbad, and creating a Critical Minerals Industry Guild to strengthen supply-chain resilience and promote green technologies.

 

Officials added that nine British universities had so far received approval to establish campuses in India, with Lancaster University in Bengaluru and the University of Surrey in GIFT City being the latest to receive letters of intent.

 

Defence cooperation was a key component of the agreements. According to a joint statement released later in the day, India will enhance its air defence capabilities through the planned procurement of lightweight multirole missile (LMM) systems from the UK. Both sides agreed to establish a Regional Maritime Security Centre of Excellence (RMSCE) under the Indo-Pacific Oceans Initiative (IPOI), and also welcomed progress on an arrangement that would see the qualified flying instructors of the Indian Air Force integrated into UK Royal Air Force training.

 

The decision to pursue a government-to-government route for the initial supply of LMM systems comes amid renewed attention to India’s air defence capabilities following the May 7–10 conflict with Pakistan, codenamed Operation Sindoor by New Delhi.

 

Thursday’s joint statement also noted that both countries intend to finalise an inter-governmental agreement (IGA) to collaborate on developing maritime electric propulsion systems for Indian Navy vessels. “It is a special coincidence that while this meeting is taking place in the country’s financial capital, Mumbai, our naval ships are participating in the joint exercise Konkan 2025,” Modi said.

 

Modi also highlighted the setting up of an India-UK Offshore Wind Taskforce and the Climate Technology Startup Fund. “This will provide support to innovators and entrepreneurs from both countries working in the fields of climate, technology, and AI.”

 

Starmer called investment commitments from Indian companies “just the start”. He told business leaders of the two countries at the India-UK CEO Forum: “In the three months since we actually signed that (trade deal)... we have seen a 6 billion pound boost in trade and investment. That is on top of the increased numbers over the last year already.”

 

Modi told the forum that he was confident that the two countries would double their trade from the current $56 billion ahead of their 2030 target to do so.

 

The leaders also discussed the situation in West Asia and the war in Ukraine. The Indian side flagged concerns over activities of pro-Khalistani elements in the UK. It said it did not support illegal migration and would cooperate with the UK authorities to curb it.