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28 February 2025

India And U.K. Enhance Bilateral Relations Through Trade And Tech

Strengthening cooperation in telecom and AI marks a new chapter for India-U.K. ties.

India and the United Kingdom are exploring opportunities for collaboration in artificial intelligence (AI), next-generation telecommunications, and space technology to strengthen Indo-U.K. ties. The Secretary (Telecom) of India recently visited the United Kingdom to engage with the Department of Science, Innovation and Technology (DSIT), U.K., and met Chris Johnson, DSIT’s national scientific adviser, and Dave Smith, the department’s national technology adviser.

The discussions centred on the applications of these technologies within 5G, 6G, and digital infrastructure security. India’s Ministry of Communications noted the Secretary also met Jean Iones, CEO of the Alan Turing Institute, to discuss potential collaborations on digital twins, security for AI within telecommunications, and ethical AI aimed at fostering innovation and startup ecosystems.

This visit emphasizes both nations' commitment to driving innovation within their respective telecom sectors and highlights India’s proactive strategy for influencing global telecom policies, promoting AI advancements, and enhancing international partnerships focused on creating a digitally inclusive future.

Simultaneously, India and the U.K. resumed negotiations on their trade deal, with the U.K.’s Secretary of State of the Department for Business and Trade, the Rt Hon Jonathan Reynolds, visiting India’s capital, New Delhi, for talks with India’s Minister for Commerce and Industry, Piyush Goyal. Goyal expressed optimism: “With a shared commitment to strengthening economic ties, both nations are determined to achieve meaningful outcomes.”

The mutual intention is to establish a Free Trade Agreement (FTA) beneficial for both parties, potentially enhancing economic growth. Currently, the U.K. and India are the sixth and fifth largest global economies, respectively, with bilateral trade reaching £41 billion ($52 billion) and directly supporting over 600,000 jobs across both nations.

Notably, India has maintained its position as the second largest source of foreign direct investment (FDI) in the U.K. for five consecutive years, based on project numbers. “India and the United Kingdom have developed close ties through collaboration across multiple sectors including security, defense, climate change, health, education, and innovation,” stated the joint release from both states.

The anticipated strengthening of U.K.-India trade enhances prospects for businesses and consumers within both nations. This agreement marks India’s most ambitious trade initiative yet, demonstrating its appeal as a preferred investment destination over China. India has been actively pursuing strengthened partnerships with key trade allies to boost domestic manufacturing and create employment for its youthful populace.

At present, negotiations are particularly timely, as India seeks to finalize its trade agreement with the United States by fall 2025, aiming to mitigate the ramifications of trade restrictions previously imposed under the Trump administration.

Last August, India and the U.K. launched the technology security initiative aimed at amplifying bilateral cooperation to drive economic recovery. The initiative's focus includes collaboration within AI, semiconductors, telecommunications, and exploration of reliable supply chains for materials like lithium and cobalt.

Following the establishment of this initiative, both nations signed a Memorandum of Understanding (MoU) between SONIC Labs and India’s C-DOT, emphasizing policy and technical frameworks concerning Open RAN and the integration of AI within 4G and 5G systems. Situated in London, SONIC Labs is recognized as a leading innovation programme funded by the U.K. Government’s Department for Science, Innovation and Technology.

The collaboration seeks to provide significant advancements across telecom security and user experience, facilitating initiatives with local British telecom firms on mobile data utilization for infrastructure strategies—echoing India’s achievements in using such data for urban developments.

Several focus areas have emerged from multilateral discussions including the establishment of joint centers of excellence to drive AI adoption across telecom, cybersecurity developments, and enhancing the deployment of digital twins—technologies allowing telecom operators to create real-time representations of their services and improve performance.

The partnership also seeks advancements through terrestrial telecommunications innovation and establishing collaborative communication systems with the Bharat 6G Alliance, highlighted when Prime Minister Modi unveiled the Bharat 6G Vision, aiming for India to lead the world’s 6G efforts by 2030.

“We followed the world in 4G. We walked with the world in 5G. We will lead the world in 6G,” remarked Jyotiraditya Scindia, India’s telecom minister.

These strategic collaborations signify heightened bilateral relations between India and the U.K., promising substantive outcomes across their shared interests and economic aspirations.