India, Aug. 6 -- It is clear that India exports a considerable amount of goods and services to the UK, and maintains a hefty trade surplus. However, this FTA will open the Indian market for the UK, and time will tell how it will unfold for both the nations.

Currently, India enjoys a trade surplus with the UK, exporting over $40 billion annually and importing around $20 billion. The new agreement could widen this gap - especially with enhanced access for Indian manufacturers and service providers.

However, trade economists caution that while the surplus may grow in the short-term, UK exports (particularly in premium goods and services) could gain momentum, especially with lower entry costs and stronger brand positioning. The net effect d...