The India–UK Free Trade Agreement: A Boon or a Curse?

India and the United Kingdom have recently signed a landmark free trade agreement following three years of negotiations. The agreement signifies a major shift in Britain’s economic policy and reflects the evolving global trade landscape shaped by India’s rise as a global economic power. Using a descriptive-analytical approach, this paper assesses the agreement’s implications for South Asia, highlighting its dual potential to foster supply-chain integration while also generating trade diversion. It argues that India’s deepening economic ties with Western economies may inadvertently exacerbate regional disparities and political tensions. The paper underscores the importance of strengthening intra-regional trade agreements in South Asia to mitigate these risks.