The India-UK Free Trade Agreement (FTA) will significantly boost Indian financial services firms’ presence in Britain, a commerce ministry official said. Officially termed the Comprehensive Economic and Trade Agreement (CETA), the pact, inked with UK Prime Minister Keir Starmer present, enhances competitiveness for Indian firms serving the diaspora and businesses while opening India’s fast-growing market to UK investments.

The agreement ensures non-discriminatory treatment and transparent UK authorization processes for Indian financial services, fostering stability and market integration. It unlocks opportunities in electronic payments, FinTech, and insurance subsectors, including non-life insurance, reinsurance, and maritime insurance intermediation. “This pact promotes innovative, competitive financial services without compromising India’s financial stability,” the official noted.

Key commitments include market access for digitally delivered services in banking and insurance-related sectors, as well as financial data processing and software services. The FTA, signed by Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds, is projected to add £25.5 billion to bilateral trade by 2040, with financial services poised for significant growth.

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Posts on X reflect optimism among Indian FinTech firms, with some highlighting the potential for startups to scale in London’s financial hub. The agreement strengthens India’s position in global financial services, leveraging its $4 trillion economy to drive innovation and job creation.

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