India and the UK have officially signed a major Free Trade Agreement (FTA), marking a new chapter in their economic partnership. The deal, finalized on Thursday in the presence of Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, is expected to boost bilateral trade by nearly $34 billion annually.
This FTA—billed as the UK’s most significant since Brexit—promises to reduce tariffs, improve market access, and enhance investment opportunities across key sectors.
Indian sectors like pharmaceuticals, financial services, textiles, IT, and renewable energy are likely to be major beneficiaries. Companies that may see direct gains include:
-
Sun Pharma, Dr. Reddy’s: Lower UK tariffs can boost exports of generic drugs.
-
Infosys, TCS, Wipro: Easier mobility and service access could benefit Indian IT majors.
-
Aditya Birla, Welspun, Arvind: Textile and apparel firms are expected to gain from duty-free access.
-
Reliance, ReNew Power: Clean energy firms may benefit from joint initiatives and UK green investments.
-
ICICI Bank, HDFC Bank: Eased regulations in financial services could open more global banking channels.
The full impact will unfold as more details emerge in the joint statement scheduled later today, but early signs point to a strong economic and strategic boost for both nations.
