Defence Industrial Strategy

Lord Bilimoria Excerpts

Wednesday 10th September 2025 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, as the chair of the International Chamber of Commerce UK, I am absolutely delighted with the defence industrial strategy. Back in 2019, we debated the 70th anniversary of NATO. I was the only Peer in that debate who said that our defence expenditure should be 3% of GDP, rather than 2% as it then was. I am delighted to see that the strategy says that we are going to go up to 3.5%. Does the Minister agree that, sadly, with the world that we live in now, it will probably need to go up to 5% very soon?

The strategy is very good, but it does not talk about global strategy. I am co-chair of the India All-Party Parliamentary Group. Given our skills that the Minister spoke about, is there not an opportunity to partner with countries such as India, which has defence manufacturing as a priority, to our benefit as well?

The Minister spoke about skills. What about universities? As a former chancellor of the University of Birmingham, I have seen first-hand the power of business and universities working together. There is huge potential here for defence.

Finally, on defence procurement—which the noble Baroness, Lady Goldie, spoke about—should it not be compulsory for everyone in defence procurement to be qualified through the Chartered Institute of Procurement & Supply, which is headquartered here in the UK?

[Lord Coaker (Lab)]

I will take that last point about procurement to my honourable friend Luke Pollard MP, who is the Minister in the other place. On defence spending, the debate continues on how much it should increase, but I am glad to see that the trajectory across Europe is towards increased spending. I will focus on the global strategy. Within the department, we are also working on a refreshed defence diplomacy strategy that we will see in due course.

On India specifically, I have been to India and spoken to officials about the relationship between our two countries and the trade that may take place. The noble Lord will know that the carrier strike group is visiting India on its way back. Again, that is part of the development of relationships between us and other nations. All that is focused. Whenever a Minister goes to another country—I am going to the Philippines next week—we put defence exports and business at the forefront of what we do. The carrier strike group had defence business activity all over it when it was in Tokyo Bay just a few days ago.

We are making progress, and I know that that progress is supported by everyone. Is there more to do? Yes, but there is an awful lot happening, particularly with countries such as India.