The author, who is a keen advocate of venture capital and startups in India, explains events in the country.

Here is another commentary from Archana Jahagirdar (pictured), the founder of India-based Rukum Capital. She writes about what is happening in the Indian economy and considers the investment implications. Jahagirdar's  article focuses specifically on Indian venture capital.
We value this expert insight into a large and growing economy. These articles are designed to get conversations going – so please respond with any views if you wish. The usual editorial caveats apply. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

The recent conclusion of negotiations on the UK-India Free Trade Agreement (FTA) marks a significant milestone in the economic relationship between the two nations and has been widely welcomed here in India. This deal has the potential to unlock new opportunities for trade and investment, further solidifying India's growing importance as a leading global economy.

India's economic growth has been nothing short of remarkable. With a population of over 1.4 billion people, India is poised to become the world's third-largest economy by 2030. The country's GDP growth rate has consistently outpaced that of many other major economies, driven by a young and increasingly affluent population. India's economic rise is also fuelled by its growing middle class, which is expected to reach 475 million people by 2025.

The UK-India FTA is anticipated to provide significant benefits for both countries. For the UK, it will provide access to a vast and growing market, with India's middle class expected to drive increased demand for high-quality goods and services. The deal will also provide UK businesses with greater access to India's procurement market, covering goods, services, and construction.

For India, the deal will provide increased access to the UK's highly developed financial services sector, as well as its expertise in areas such as technology and innovation. The agreement will also provide greater certainty for Indian businesses operating in the UK, with provisions for the protection of intellectual property and the recognition of electronic contracts.

Several key sectors are likely to benefit from the UK-India FTA, including:

-- Technology: India's thriving tech sector, combined with the UK's expertise in areas such as artificial intelligence and cybersecurity, makes for a strong partnership.
-- Consumer goods: With India's growing middle class, there is significant potential for increased trade in consumer goods, including food, beverages, and luxury products. UK brands could benefit from increased access to India's large and growing consumer market.
-- Financial services: India's growing financial sector, including its thriving fintech industry, could benefit from increased collaboration with the UK's financial services sector.

The UK-India FTA is likely to lead to increased international investment flowing into Indian VC firms. With greater access to the UK's financial services sector, UK-based investors will have more opportunities to invest in Indian VC firms, providing them with the capital they need to support Indian startups and entrepreneurs. This influx of foreign investment will help fuel the growth of India's startup ecosystem.

As a result, Indian VC firms will have access to more global capital, enabling them to invest in a wider range of startups and support the growth of innovative businesses. This increased investment will drive innovation and entrepreneurship in India, creating new opportunities for growth and job creation. With the UK-India FTA, Indian VC firms will be well positioned to take advantage of the growing startup ecosystem and support the next generation of Indian unicorns.