Defence

New India-UK pacts to boost defence partnership

India Global Business Staff

Three memoranda of understanding (MoU) covering logistics and training are at different stages of completion.

The UK government recently confirmed that a series of defence agreements are in the works with India, which will boost the UK-India defence partnership substantially.

The UK is poised and ready to assist India with its challenge of becoming an Atmanirbhar Bharat, including production of howitzers (featured above), firearms, armoured vehicles amongst others.

“The UK and India are natural defence partners, and we are not just supporters of 'Make in India' but we also want to 'Create in India' as we develop new technologies together,” said Dominic Beales, Head of UK Defence & Security Exports India, and Brigadier Gavin Thompson, UK Defence Adviser, in a joint statement as a situation representation update this month. It comes against the backdrop of the UK's ongoing review of its foreign policy, defence, security and international development policies, which is widely expected to include a tilt towards the Indo-Pacific region, for the first time in a post-Brexit world.

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MoUs in the works

At a governmental level, the UK confirmed that it is working with India on three significant defence memoranda of understanding (MoUs):

  • The Defence Technology and Industrial Capability Cooperation MoU, or DTICC MoU, was signed in April last year aimed at supporting and building on the huge opportunities for collaboration that exist between the defence industries of the two countries. The collaboration is intended to advance India's defence acquisition process and also foster long-term technology and hardware transfers.

  • A Defence Logistics MoU is currently in the final stages of agreement between the governments. It reflects a new approach to the way the UK views its defence alliances as it formally exits the European Union (EU), with or without a deal, on January 1, 2020. It is being seen as a clear signal for the region and a strong message for neighbouring China over UK-India strategic alignment.

  • A Defence Training MoU is in developmental stages, which also marks promise for a new order in the Indo-Pacific region.

IAF and UKAFCA teams along with the organisers pose for a group photograph after a cricket match between the IAF team and UK Armed Forces cricket team. Defence is seen as a pivotal aspect of resetting the future of trading relationships with India.

Self-reliant India

“The UK is poised and ready to assist India with its challenge of becoming an Atmanirbhar Bharat. There are a number of existing and developing partnerships and joint ventures between the UK and India at both a government and Industry level,” noted Beales and Brigadier Thompson, as part of their latest assessment on UK-India defence ties.

In the Land domain, these partnerships and joint ventures include:

  • Armoured Fighting Vehicle engines

  • Firearms

  • Howitzers

  • Air defence systems

  • Mine-ploughs

In the Maritime domain, they include:

  • Air cushioned vehicles

  • Critical warship navigation equipment

In the Air domain, they include:

  • Jet engine technology development

  • Missile simulation systems

“Our collaborations don′t stop at the defence industry level; we are also engaged at a military level on regular training and exercises, and at an Investment level tw0 UK companies are already investing into the Uttar Pradesh Defence Corridor,” the defence chiefs added.

Integrated Review

Defence is seen as a pivotal aspect of the ongoing Integrated Review, initiated by the Boris Johnson led UK government as a significant reset of the future trading relationships with countries like India once Britain has left the EU.

In fact, a new expert panel has been set up by the UK government to advise on the use of "cutting-edge" trade models and techniques as it moves towards clinching post-Brexit free trade agreements (FTAs).

Dr Swati Dhingra, Assistant Professor of Economics at the London School of Economics and Political Science (LSE) and a former alumni of the Delhi School of Economics, University of Delhi, is part of the five-member panel set up by the UK's Department for International Trade (DIT). It will advise DIT's Chief Economist on how best to incorporate wider global economic developments - including the impact of Covid-19 and increased protectionism - into its economic and trade modelling.

UK International Trade Secretary Liz Truss said: “The department is updating its modelling to reflect the modern economy and seismic changes we've seen over the past decade - not least the impact of tech, rising protectionism and coronavirus.

“Deep and dynamic free trade deals are even more valuable when trade barriers elsewhere are high, and we want our economic assessments to reflect that. Better modelling will help us capture the full benefits of free trade agreements and strike British-shaped deals that suit our economy and deliver for the whole country.”

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