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I've read in the manual that some countries can share research. How does this actually happen? As an example why does my increase in Inf Wpns level for the UK not automatically become available for Indian Army units? What am I missing?

Oops - wrong forum.

I think research sharing is between a major power and its minors (ex: Germany - major - Romania, Hungary, Bulgaria, etc - minors)
AFAIK, research sharing is not possible between major powers.
In your case, India is a major power.

In the context of the question, sharing is between Majors.

Minors automatically gain the research upgrades of their controlling Majors.