In 2019, the UKIBC launched our Aerospace and Defence Group, in recognition that the UK-India relationship in aerospace and defence is at a critical turning point and is another demonstration of the close ties between Indian and UK industry. Earlier in 2019, a Memorandum of Understanding on Defence Technology Industrial Capability Cooperation was signed between UK and India which highlighted the UK Government’s approach towards enhancing cooperation with India, and the Defence vertical is an example of how this cooperation is being taken to a new level.
Defence and Aerospace remains a critical sector for India – and for the success of Make in India. A flourishing Indian defence sector requires increased foreign technology transfer and foreign investment in India which will ultimately lead to co-development and co-creation of capabilities which can meet not just the needs of India but also be exported to third countries. With the move towards self-reliance and self-resilience, India is keen to attract global investment into the defence sector to reduce its reliance on traditional imports. This represents an immense opportunity for the companies, industries, and the skilled workforce in both the nations to collaborate and innovate for mutual benefit, especially in the niche domain of NCO.
The UK has the second largest aerospace and defence industries in the world. In 2020 the aerospace sector had around a 16% global market share, a total turnover of around £30 billion as well as defence orders worth £7.9 billion. The UK’s reputation of being a global centre of excellence in the design of aerospace related parts has seen it become a major supplier for the worldwide market. While the global export market remains volatile, the UK had a 6% share of the global defence export market in 2020 showing positive trends for the sector.
The UK and India continue to develop their relationship within the aerospace and defence sectors through the implementation of initiatives such as the Memorandum of Understanding on Defence Technology Industrial Capability Cooperation, and the continued commitment to developing a free, open and secure Indo-Pacific Region.
