India, UK Seal $800 Million Defence Deals; Graphcore Commits $1.3 Billion Investment in AI Infrastructure

India and the United Kingdom have announced two landmark defence agreements worth over $800 million, alongside a major AI infrastructure investment by British chipmaker Graphcore, signaling a new era of strategic and technological collaboration. The announcements were made during UK Prime Minister Keir Starmer’s two-day visit to Mumbai, where he met Prime Minister Narendra Modi to deepen bilateral ties across defence, clean energy, education, and artificial intelligence.

“India and the UK are building a future together—one that’s secure, smart, and sustainable,” Starmer said, highlighting the deals as a cornerstone of the evolving Indo-British partnership.

🔰 Defence Deals Breakdown: Strategic and Technological Depth

The two defence agreements include:

• Lightweight Multirole Missile (LMM) Systems: A $470 million contract for the initial supply of LMMs to India, built in Northern Ireland by Thales UK and integrated with Bharat Dynamics Limited (BDL).
• Electric-Powered Naval Engines: A $335 million cooperation pact to develop next-generation electric propulsion systems for Indian naval ships.

These deals are being executed via the government-to-government route and are expected to enhance India’s indigenous defence capabilities under the Atmanirbhar Bharat initiative.

🛡️ India-UK Defence Partnership Snapshot

🧠 Graphcore’s $1.3 Billion AI Investment Plan

In parallel, Graphcore—a SoftBank-backed British chip designer—announced a $1.3 billion investment to build AI infrastructure in India over the next decade. The company will establish a research hub in Bengaluru, creating 500 high-skilled jobs and accelerating India’s chip design ecosystem.

The move aligns with India’s semiconductor ambitions, supported by a ₹76,000 crore government fund to attract global chipmakers. Graphcore’s smartchips, designed for AI data centers, will complement India’s push for AI-native computing.

🧪 Graphcore India Expansion Roadmap

🌐 Strategic Synergy: Defence Meets Deep Tech

The convergence of defence and AI investments reflects a broader Indo-UK strategic alignment. India is emerging as a preferred partner for next-gen technologies, with the UK positioning itself as a gateway for Indian innovation to global markets.

Starmer also announced the opening of nine UK university campuses in India, further strengthening educational and research collaboration.

🧭 Policy and Industry Reactions

• Indian Defence Ministry: “These agreements reinforce our commitment to self-reliance and global interoperability.”
• Graphcore CEO Nigel Toon: “India’s talent pool and policy support make it ideal for our next phase of AI innovation.”
• CII and FICCI: Welcomed the announcements, urging faster execution and ecosystem development.

Disclaimer

This news content is based on verified government statements, corporate disclosures, and diplomatic briefings as of October 10, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice, defence endorsement, or geopolitical analysis and adheres to ethical journalism standards.