Brexit: Opportunities for India

India has always had much less trade and investment with the United Kingdom (UK) than with the European Union (EU). Nevertheless, trade and investments between India and UK have been rising steadily since 2005. Brexit provides a fresh opportunity to India to strengthen its economic relationship with the UK through an India-UK free trade agreement (FTA). This paper estimates the impact of an FTA between India and the UK on merchandise trade, at a disaggregated product level. The paper also identifies new products that India could export to the UK to diversify its export basket. It examines bilateral trade in services and the potential to increase this trade. The paper concludes by suggesting a way to strengthen India’s economic relationship with the UK.