India no longer just an outsourcing hub, says former chairman
MUMBAI, INDIA — India’s global image is undergoing a major shift, from being viewed merely as an outsourcing destination to becoming a full-fledged strategic partner in innovation, defense, and education, according to a report from The New Indian Express.
This was the message underscored by Lord Karan Bilimoria, founding chairman of the United Kingdom-India Business Council, during the Kautilya Economic Conclave 2025 in New Delhi.
Transforming India–UK trade relations
According to Bilimoria, the India–UK partnership is entering a transformative phase with the upcoming Free Trade Agreement (FTA).
“India can benefit from partnering with the UK especially in the defence sector. And you see the big mindset change that is taking place now is India is no longer looked upon as an outsourcing destination,” Bilimoria said in an interview with The New Indian Express.
He emphasized that collaboration in digital infrastructure and education would be key pillars of this new relationship. British universities and schools, he noted, are looking to establish campuses in India, a move that reflects growing confidence in India’s knowledge and talent ecosystem.
“There are immense opportunities for countries in terms of collaborating on digital trade,” Bilimoria added. “We can partner with India, which is also very advanced, and work together. And now the UK, for example, has announced that we want to have digital IDs. India’s got the Aadhar. India’s got the payment system digitalised. India has offered to partner with the UK, saying, here’s our digital stack, you’re welcome to work with us.”
India and UK weathering global trade shifts
Bilimoria also weighed in on the global trade landscape, particularly the recent United States tariff hikes that he believes could backfire on American consumers. “I don’t believe that anyone is going to benefit from these high tariffs, including America, because in the long run, you’re making products more expensive for your own consumers,” he said, warning that protectionist policies could disrupt global supply chains.
Although the world is under stress, Bilimoria is confident in the strength of the India-UK relationship, stating that the U.S. comprises only 13% of total global trade, indicating significant room for emerging working partnerships for India and the U.K.. At the same time, other markets, such as France and Germany, will also benefit from innovations.
India redefines global outsourcing role
The locale of such observations made by Bilimoria himself points to a wider evolution occurring in the economic character of India. Outsourcing has been the primary platform for India’s entry into the global economy for several decades. The paradigm has shifted from mere cost efficiency to co-creation and from providing services to forming strategic alliances.
In fact, no demotion of the outsourcing industry is intended; instead, the outsourcing industry is thus further uplifted. Indian IT companies at the forefront of outsourcing will increasingly be in a better position to move up the value chain: working actively towards innovation, digital integration, and sustainable global strategy, as global companies demand more value-added collaborations.
