Comparative Analysis of UK vs peer nations in Indian manufacturing defence
By Trisha Nagpal
By: Richard McCallum, Senior Advisor
Why are companies from Russia, France, the USA and Israel having more success with defence manufacturing in India than those from the UK?
Everyone has an opinion… so we decided to look at the data and then interview over 30 people across the Indian defence spectrum (government officials, defence personnel, people at Indian OEMs and those at the big JVs, media and other defence experts) to find some answers.
Based on our findings, we ranked the UK alongside Australia, France, Germany, Israel, Russia, the US, and South Korea according to the following criteria (see slides)
- Govt to Govt relations with India
- Technology and know-how transfer to local players
- Local production and manufacturing in India (including JVs)
- Joint military exercise and involvement with decision makers
- Adaptability and flexibility with Indian defence procurement
- Bilateral trade and defence agreements with India
- Presence of a sufficient team on the ground in India
Israel came out on top with a score of 3.7/5, Germany at the bottom, on 2.4/5. The UK was joint 6th (with Australia) on 2.9/5. Near the bottom of the pack.
Looking at the top performers more closely, arguably they’ve achieved success on the back of G2G wrapped platform or systems deals (except Israel). But when we asked people to explain why the top 4 were getting it right in India, this is what we heard:
- Israel: India and Israel have a deep defence partnership, marked by advanced technology transfers (missile defence systems and UAVs), joint development projects, strong private sector engagement (IAI and Rafael), and close intelligence and counter terrorism cooperation. Major JVs: Adani Defence + Elbit Systems. Kalyani Strategic Systems Ltd + Rafael Advanced Defense Systems.
- Russia: India-Russia defence ties are rooted in decades of partnership, with Russia being India’s largest arms supplier, a key technology transfer partner (e.g.: Sukhoi fighter jets, Brahmos missiles), and a reliable collaborator in advanced defence projects. Major JVs: the BrahMos cruise missile programme and the Su-30MKI fighter jet programme with HAL.
- France: India and France share strong strategic ties, with diplomatic support on global issues, extensive technology transfers and maritime cooperation in the Indo-Pacific. France also respects India’s strategic autonomy in defence deals. France is particularly good at treating the defence industry relationship as a team sport – companies help each other out and the government works from the Elysee to the Head of Mission, supported by the DGA and GIFAS the trade organization.It looks harmonious and has proven effective. Major JVs: Reliance + Dassault Aviation. HAL + Safran.
- United States: India and the US share strong defence ties through major contracts (Apache, Chinook, C-17), technology transfers (e.g.: GE jet engines for Tejas), and other joint ventures. The US supports defence R&D, funds Indian startups, and sees India as a key partner in countering China. Major JVs: TASL + Sikorsky. TASL + Boeing.
To be fair, the UK government has worked hard and strategically to improve its defence ties with India over the last 5 years. Both governments deserve praise for getting the relationship into a much better place than it was 10 (even 5) years ago (and recent geopolitics have helped). The cross-Whitehall Defence Partnership – India (DP-I), launched in February 2025, is starting to make things happen – but just getting started.
(I also think Rolls-Royce need a special mention here: their JV with HAL, IAMPL, is hugely successful and growing, demonstrating exactly how to use India’s manufacturing prowess to feed global supply chains, and their co-development offer of a jet engine with shared IP is brilliantly forward-thinking.)
But our study we’re still behind the curve on technology transfer, adopting competitive pricing strategies, and engagement with Indian defence officials, industry stakeholders, and policymakers for relationship building, and other strategic issues.
>>> My next post will explore what does the UK need to do to improve its defence industrial engagement with India.
