India and the United Kingdom are close to signing two inter-governmental agreements (IGAs) for the incorporation of electric propulsion on Indian Navy ships and production of Marlet lightweight multirole missiles (LMM). These are decisive steps toward forging long-term defense industrial cooperation and deepening the bilateral strategic partnership.

At the same time, the U.K. has also upped its pitch for another mega-deal — the design and development of a jet engine to power the advanced medium combat aircraft (AMCA), India’s fifth-generation fighter.

The two countries have made concerted efforts to deepen defense cooperation and find a long-term overarching deal to anchor that effort. This intent was formalized in the 10‑year Defense Industrial Roadmap under the “Vision 2035” announced last year, which focuses on deepening collaboration in advanced technologies and complex weapons, supporting innovation and co-development, through cooperation programs such as the Jet Engine Advanced Core Technologies. It also calls for strengthening research and development on developing new capabilities, including underwater systems and direct energy weapons.

The expanding military-to-military cooperation, joint exercises and research collaborations add to the broadening cooperation. Another important binding factor is overlapping concerns and converging interests in the Indo-Pacific, where Britain sees India as one of the most important “stabilizing forces.”

Beyond defense and security, the overall relationship too has leapfrogged with high-level commitment from both sides. That push led to the conclusion of the bilateral Free Trade Agreement (FTA), one of the biggest trade deals of modern times, that came into effect on July 15, 2026.

Integrated Full Electric Propulsion (IFEP)

The IGA to be signed is to develop and incorporate IFEP for the Indian Navy’s four landing platform docks (LPD) for which a separate tender is underway. The conversation for deploying IFEP on Indian Navy’s future vessels is several years old, as the Indian Navy set its sights on shifting from diesel to electric propulsion engines to bring in efficiency, and reduce fossil fuel dependency and emissions.

Formalizing the conversation, a joint working group called the “India-UK electric propulsion capability partnership” was set up in early 2023. A Statement of Intent to co-design, co-create and co-produce maritime electric propulsion systems was signed in November 2024, and the intent to finalize an IGA was announced when the India and British prime ministers met in Mumbai in October 2025. As part of the cooperation, GE Vernova and state-owned Bharat Heavy Electricals Limited announced the setting up of India’s first land-based test facility for IFEP.

However, IFEP systems on four LPDs are just the start, as the Indian Navy is targeting a 200-ship force by 2035 in response to expanding Chinese naval numbers and presence in the Indian Ocean Region. Some existing ships could also be converted to electric propulsion. The IFEP brings significant operational efficiencies in this regard, which the Royal Navy has mastered, having operationally deployed it on several frontline ships, including its aircraft carrier. In April 2023, U.K.’s Chief of Defense Staff Admiral Sir Tony Radakin observed that the U.K. is one of the world’s leaders in maritime electric propulsion, having been on it for at least 20 years, and cooperation with the U.K. means that India “doesn’t have to go through a 20-year journey.”

The LPD project, an ambition for almost two decades, received a fresh sanction from the Defense Acquisition Council, the highest body for procurements in India’s Ministry of Defense, in October 2025. These vessels, displacing around 29,000 tons, will be built by Indian shipyards in partnership with foreign partners.

Once rolled out, this deal will intertwine collaboration over the next several decades. However, given India’s notorious procurement process, the IFEP deployment depends on the LPD deal reaching its logical conclusion in a reasonable timeframe.

The Elusive Engine Deal

India is looking for a global partner for design and development of a 120kN jet engine to power the AMCA-Mk2. While negotiations between Safran of France and Gas Turbine Research Establishment (GTRE) have been ongoing for several years now, the delay opened prospects for the U.K’s Rolls Royce and the U.S.’ General Electric. Rolls Royce, which has been working closely with the Indian research establishment for several years, has presented a compelling offer, including full control over Intellectual Property for the engine developed.

On August 14, Rolls Royce announced a partnership with Reliance Industries Limited to explore the formation of a dedicated Aerospace Gas Turbine Complex that will be a center of excellence for power and propulsion technology in India. This significantly ups the ante in support of its offer.

However, some practical realities stand out, which will determine partner selection. For instance, despite assurance that U.S. International Traffic in Arms Regulations (ITAR) does not apply to engine collaboration as it’s an IGA, concerns remain in Indian policy circles given Britain’s alliance with the U.S. and possible impact on future deals.

This is particularly so as all the variants of India’s indigenous light combat aircraft and AMCA-Mk1, cumulatively about half the fighter squadron strength in two decades, will be powered by GE engines, a U.S. company. That positions France favorably given its independent arms industry and the trajectory of Indo-French ties. Adding to that is India’s interest in joining the French future combat air system (FCAS), sixth-generation fighter program. If the same engine or its derivative can go into the FCAS, that would be a lucrative proposition both economically and operationally.

Widening Cooperation

Last year, India and the U.K. made several important announcements on the defense front. At Aero India in February 2025, U.K. announced the formal launch of “Defense Partnership–India,” or DP-I, a dedicated cell within the U.K. Ministry of Defense for deepening cooperation.

Several cooperation agreements were also signed at the biennial expo in Bengaluru, including production of Starstreak man portable air defense systems (MANPADS) and LMMs and the establishment of an advanced short-range air to air missile (ASRAAM) assembly and test facility in India.

The two countries also conducted their largest-ever maritime exercise last year that saw their Carrier Strike Groups exercise together. A separate air defense exercise saw the Royal Navy deploying its aircraft to exercise with the Indian Navy and Indian Air Force.

A contract for laser beam riding Starstreak Man-portable air-defense systems or MANPADS was also signed between Thales U.K. and Bharat Dynamics Limited (BDL) under the Emergency Procurement route for 16 launchers, 56 missiles and one simulator worth around $35 million. This could potentially expand to thousands of missiles in future. The two companies had then announced their intent for collaboration to produce LMMs in India. The IGA to be signed soon will make India one of the largest markets for the missiles. Similarly, weapons manufacturer MBDA U.K. and BDL are setting up a first-of-its-kind ASRAAM assembly and test facility in Hyderabad to also cater to exports, after the missile was chosen for the Jaguar and Light Combat Aircraft-Mk1A.

British defense companies like Thales, Rolls Royce and several others have integrated Indian companies into their global supply chains. With the expanding cooperation and an enabling FTA, this is set to significantly expand. With the Indian defense manufacturing ecosystem significantly maturing over the years, it offers scale and capacity, the criticality of which was showcased in the West Asia conflict.

Military-to-military engagements have also expanded. For instance, with agreement early this year on the deployment of three IAF qualified flying instructors to a Royal Air Force training base, Indian officers are now embedded as instructors at all three UK service academies. Britain has also been leveraging the bilateral logistics sharing agreement signed in 2022 to augment its deployments in the Indian Ocean Region. In addition to spares and supplies, under the logistics pact, Royal Navy ships have undergone essential repair at an Indian shipyard during their deployment in the region. Britain was the fifth country to post a liaison officer at the Indian Navy’s Information Fusion Centre for Indian Ocean Region (IFC-IOR) in Gurugram inaugurated in 2018 to promote maritime domain awareness.

The India-U.K. relationship has struggled with several irritants in the past, including Khalistani separatism in the U.K, and Britain’s ties with Pakistan. However, there is determination on both sides to expand ties amid geopolitical uncertainties and a changing world order.

With this slew of agreements, Britain is looking to regain lost space in India’s growing defense sector. For India, the U.K is one of the important stabilizing vectors in its multilateral alignment strategy to safeguard its interests.