India and the United Kingdom have agreed to a Free Trade Agreement (FTA) after more than three and a half years of negotiations, marking a significant milestone in their economic partnership. Commerce Minister Piyush Goyal described the pact as setting a new benchmark for equitable and ambitious trade between two major global economies.

The India-U.K. bilateral trade currently stands at approximately $60 billion, with India enjoying a positive trade balance. According to estimates from the Indian government, this surplus is expected to double by 2030, driven by increased market access and reduced trade barriers. The British government projects that the new trade deal will add another $34 billion to the bilateral trade volume.

The agreement is set to be signed after about three months, with implementation expected to take over a year. While the detailed terms are yet to be disclosed, domestic industry stakeholders have generally welcomed the deal, seeing opportunities for enhanced exports and investment. However, there are concerns about how sectors such as agriculture and medium and small enterprises (MSMEs) will cope with increased competition from imports.

The timing of this agreement is crucial, as global trade remains uncertain, especially in the wake of trade tensions triggered by U.S. President Donald Trump’s tariff policies. Strengthening bilateral trade ties with the U.K. is part of India’s broader strategy to diversify its trade partnerships and reduce reliance on more volatile markets.

The FTA will likely cover a broad range of areas including tariffs, services, investments, intellectual property rights, and standards, fostering deeper economic cooperation. For the U.K., India represents a rapidly growing market with opportunities in sectors such as technology, pharmaceuticals, textiles, and services.

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The Closed IPOs are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

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