UK Seeks To Deepen Economic, Defence And Security Ties With India

A few British defence companies are planning to boost tie-ups with India as they are looking to diversify their supply chains. The UK seeks to deepen economic, defence and security ties with India, according to Reuters report in Business Today.

Chief Executive Richard McCallum of UK-India Business Council (UKIBC) told the agency that a group of 22 British defence companies with a collective revenue of about $60 billion is really focussed on doing business with and in India.

According to the Reuters report, this comes as the country seeks to build closer links with the Indo-Pacific region, and deems China as an 'epoch-defining challenge' to the world order.

Around 11 companies out of 22 already have established joint ventures of subsidiaries in India, but are looking to do more. Already among the ones that have a presence in India's aerospace and defence sector, BAE Systems has an Indian unit, while MBDA has a venture with Larsen & Toubro, and Rolls-Royce is looking to collaborate on jet engine technology. However, the details of companies are still unclear which want to do a tie up and those that are in in talks with.

"We think it is important to embed India into your supply chain," McCallum said in an interview.

As per UKIBC Chair Richard Heald, sustainable energy and green finance were among the areas of collaboration. Heald also said that he hopes to see more clarity on protection of investments in order to boost confidence.

A free trade deal is being negotiated between Britain and India to boost bilateral trade around this time.