Indian stock markets opened higher on Thursday, reflecting strong investor confidence in the country's economic outlook despite recent tensions with Pakistan. The positive start comes also amid optimism surrounding the India-UK trade deal and a stable global interest rate environment.
India and the United Kingdom FTA is seen as a part of a new global trade strategy that aims to reduce dependence on China, manage trade challenges from US tariffs, and help the UK reshape its economy after Brexit, according to a report by SBI Research.
The India-UK Free Trade Agreement (FTA0, signed on Tuesday May 6th 2025, after nearly three years of negotiations, is one of the most comprehensive free trade agreement ever entered into by India.
UK Foreign Secretary David Lammy has called the new UK-India trade agreement a gateway to shared prosperity, emphasising its economic potential and the deepening of strategic ties between both nations. He highlighted his early outreach to India and described the GBP 43 billion partnership
UK Prime Minister Keir Starmer has announced a landmark trade agreement with India, describing it as the UK's largest deal since Brexit and India's most ambitious to date. The deal is expected to generate billions for the UK economy and strengthen bilateral ties.
The UK and India have agreed a landmark trade deal which delivers on the UK government's core mission of growing the economy, raising living standards, and putting money in people's pockets, the UK government said in a statement.
In his first statement after the much-awaited India-UK FTA is finalised, Commerce Ministry Piyush Goyal termed the deal to be a future-ready step that will unlock growth, jobs, and innovation in India.
Johnson also spoke about the trade deal between India and the US and expressed hope that the trade negotiations will work out well between two nations.
The US administration has been able to dominate the perception battle with its Indian counterpart at a time when both partner countries are negotiating for a bilateral trade deal, argued Ajay Srivastava, Founder of the Global Trade Research Initiative (GTRI) and a foreign trade officer.
Amid the ongoing trade tensions between US and China, countries like India and Japan may be able to negotiate better deals with the US, according to a report by Jefferies.
US Treasury Secretary Scott Bessent has said that the United States and India made "some very good progress" concerning the trade deal during Vice President JD Vance's visit to the country and some announcements could be made soon.