Mumbai, May 7, 2025 - Despite ongoing geopolitical tensions, India's economy demonstrates resilience, maintaining its attractiveness to foreign investors. The limited direct trade with neighboring countries ensures minimal immediate impact on Indian markets.
Analysts note that previous geopolitical events have not had a lasting impact on Indian assets. Foreign investors have shown confidence by remaining net buyers of Indian equities, with significant investments recorded in recent trading sessions. This confidence is bolstered by optimism surrounding trade deals, particularly the recently finalized agreement with the U.K.
The Free Trade Agreement (FTA) with the U.K., finalized in May 2025, is expected to boost bilateral trade by billions of pounds annually. The agreement includes tariff reductions on various goods, enhancing market access for both countries. Ongoing trade discussions with the U.S. further contribute to a positive growth outlook for India.