India and the United States have concluded a roadmap for defence industry cooperation for the next few years, the two countries said on Monday (5), a landmark move expected to bolster New Delhi's defence manufacturing ambitions.
Washington is working to deepen ties with India and sees stronger military-to-military and technology ties with the world's largest democracy as a key counterweight to China's dominance in the region.
It is also seeking to wean New Delhi away from its traditional dependence on Russia for defence supplies.
The roadmap was finalised at a meeting between visiting US Defence Secretary Lloyd Austin and Indian Defence Minister Rajnath Singh.
The agreement comes weeks before Prime Minister Narendra Modi visits Washington on June 22 for an official state visit and holds talks with President Joe Biden.
The roadmap is considered significant as Washington maintains strict controls over what domestic military technology can be shared or sold to other countries.
The move aims to change the "paradigm" for defence sector cooperation between the two countries, the US embassy in New Delhi said in a statement.
It will "fast-track technology cooperation and co-production in areas such as air combat and land mobility systems, intelligence, surveillance, and reconnaissance, munitions, and the undersea domain", it said.
The roadmap includes specific proposals that could provide India access to cutting-edge technologies, it said, adding that Austin and Singh also pledged to review regulatory hurdles impeding closer industry-to-industry cooperation.
India, the world's largest arms importer, depends on Russia for nearly half its military supplies, but has also increasingly diversified its sources to buy from the US, France and Israel, among others.
New Delhi also wants global defence manufacturers to partner with Indian companies and produce arms and military equipment in India for local consumption as well as exports.
The Biden administration is set to sign off on a deal that will allow General Electric Co to produce in India jet engines powering Indian military aircraft.
Austin said he and Singh had discussed ways to increase information sharing and new initiatives to improve maritime cooperation, including in the undersea domain.
The US-India defence partnership matters, he told reporters, because "we face a rapidly changing world".
"We see bullying and coercion from the People's Republic of China, Russian aggression against Ukraine that seeks to redraw borders by force and threatens national sovereignty, as well as transnational challenges such as terrorism, climate change.
"So democracies must now rally together around not just our common interests but also our shared values," Austin said.
UK life sciences sector contributed £17.6bn GVA in 2021 and supports 126,000 high-skilled jobs.
Inward life sciences FDI fell by 58 per cent from £1,897m in 2021 to £795m in 2023.
Experts warn NHS underinvestment and NICE pricing rules are deterring innovation and patient access.
Investment gap
Britain is seeking to attract new pharmaceutical investment as part of its plan to strengthen the life sciences sector, Chancellor Rachel Reeves said during meetings in Washington this week. “We do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,” Reeves told reporters.
Recent ABPI report, ‘Creating the conditions for investment and growth’, The UK’s pharmaceutical industry is integral to both the country’s health and growth missions, contributing £17.6 billion in direct gross value added (GVA) annually and supporting 126,000 high-skilled jobs across the nation. It also invests more in research and development (R&D) than any other sector. Yet inward life sciences foreign direct investment (FDI) fell by 58per cent, from £1,897 million in 2021 to £795 million in 2023, while pharmaceutical R&D investment in the UK lagged behind global growth trends, costing an estimated £1.3 billion in lost investment in 2023 alone.
Richard Torbett, ABPI Chief Executive, noted “The UK can lead globally in medicines and vaccines, unlocking billions in R&D investment and improving patient access but only if barriers are removed and innovation rewarded.”
The UK invests just 9% of healthcare spending in medicines, compared with 17% in Spain, and only 37% of new medicines are made fully available for their licensed indications, compared to 90% in Germany.
Expert reviews
Shailesh Solanki, executive editor of Pharmacy Business, pointed that “The government’s own review shows the sector is underfunded by about £2 billion per year. To make transformation a reality, this gap must be closed with clear plans for investment in people, premises and technology.”
The National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold £20,000 to £30,000 per Quality-Adjusted Life Year (QALY) — has remained unchanged for over two decades, delaying or deterring new medicine launches. Raising it is viewed as vital to attracting foreign investment, expanding patient access, and maintaining the UK’s global standing in life sciences.
Guy Oliver, General Manager for Bristol Myers Squibb UK and Ireland, noted that " the current VPAG rate is leaving UK patients behind other countries, forcing cuts to NHS partnerships, clinical trials, and workforce despite government growth ambitions".
Reeves’ push for reform, supported by the ABPI’s Competitiveness Framework, underlines Britain’s intent to stay a leading hub for pharmaceutical innovation while ensuring NHS patients will gain faster access to new treatments.
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