UK and India Strengthen Ties with £41 Billion Growth Partnership

10 Mar, 2025

The UK is strengthening its ties with India through expanded economic and diplomatic initiatives. UK Foreign Secretary David Lammy hosted Indian External Affairs Minister S. Jaishankar to advance the £41 billion trade partnership. As part of these efforts, the UK is welcoming two new Indian consulates in Belfast and Manchester, reinforcing economic links and India’s growing investment presence.

Indian investment in the UK has surged past £100 million across AI, professional services, and textiles, creating hundreds of jobs over the next three years. The British High Commission in New Delhi reported a 28% rise in Indian Foreign Direct Investment (FDI) into the UK by the end of 2023, with India ranking as the second-largest investor in terms of FDI projects for five consecutive years.

The new consulates will help deepen UK-India collaboration in trade, investment, and cultural exchange. During talks at Chevening House, Lammy and Jaishankar discussed expanding the UK-India Comprehensive Strategic Partnership, focusing on economic growth, technological innovation, and global challenges like climate change. They also addressed pressing international issues, including Russia’s war in Ukraine and Middle Eastern developments.

Lammy emphasized that UK-India ties are a key part of the government's "Plan for Change," stating that the £41 billion trade relationship is just the starting point. Additionally, India’s recent decision to raise the Foreign Direct Investment (FDI) limit in insurance from 74% to 100% presents new opportunities for UK insurers looking to expand in India.

The Technology Security Initiative (TSI), launched in July 2024, was also a focus of discussions. This initiative strengthens UK-India cooperation in AI, telecoms, and critical minerals, enhancing supply chain resilience, job creation, and technological innovation.

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