The SII has already started phase one trials in the UK of a one-dose nasal vaccine for coronavirus, in partnership with Codagenix INC.
A UK government source said Mr Johnson and Mr Modi were “firing the starting gun on a full free trade agreement (FTA)” and added: “Negotiations proper will launch in the autumn.”
Welcoming the partnership, the Prime Minister said Monday night: “Like every aspect of the UK-India relationship, the economic links between our countries make our people stronger and safer.”
He said the thousands of jobs created by the partnership “will help families and communities build back from coronavirus” and nurture both nations’ economies.
By 2030, Britain and India aim to double the value of their trading partnership, Mr Johnson added. It is currently worth £23 billion a year and supports more than half a million jobs.
The agreement will create new opportunities for British businesses in the Indian food and drink, life sciences and services sectors.
Non-tariff barriers on fruit and medical devices will be slashed, in a boost to British exports.
UK medical technology company CMR Surgical, which makes a sophisticated robotic system that assists doctors performing minimal access surgery, has secured an export deal worth £200 million, which will create 100 new UK jobs.
The deal also commits both sides to addressing immediate market access barriers and includes a declaration to work towards a full FTA.