The UK and India have agreed to enter into a tech partnership that will help businesses, universities, and other establishments in the two nations to collaborate on the development of technology.

Initially, the partnership will be piloted with a £1m investment. This initial investment will connect the UK with Pune, Maharashtra to work on the future of mobility, including low emission and self-driving vehicles, battery storage, and vehicle light-weighting. On top of this, the UK will make connections with Bangalore to focus on augmented and virtual reality, advanced materials, and artificial intelligence.

If the pilot is a success, the UK could potentially invest a further £13m in the partnership by 2022 and the project will be scaled up to bring in more regions of the UK and India into sharing their expertise within different tech fields.

“Our world-leading digital economy is booming, worth more than £116 billion a year and employing more than two million people,” said Matt Hancock, secretary of state for culture, media, and sport.

“Were determined to see this incredible success continue, and this ambitious UK-India Tech Partnership will bring together some of the best minds working in tech to unlock its future potential and deliver high-skilled jobs and economic growth in both countries.”

To go along with the government deal, the two nations’ tech trade associations – the UK’s TechUK and India’s Nasscom – will work together via a UK-India Tech Alliance, which will bring senior tech leaders together to collaborate, help develop policy, and encourage innovation.

“This is an incredibly important partnership and something tech businesses from both countries have been driving for,” said Julian David, CEO of TechUK. “The UK and India are leaders in the development and use of digital tech, and there is a huge amount we can learn from each other and big opportunities to join forces in innovation.

“India is also a key strategic partner for the UK with world-class digital skills. Deepening our engagement will open up opportunities for business in both countries and help ensure we maximise the benefits of technology for our societies and citizens.”