The India-U.K. Comprehensive Economic and Trade Agreement has been presented by City of London Corporation policy chief Chris Hayward as a signal of greater predictability for firms on both sides. The agreement is being read as a confidence-building step for companies that want to plan investment, expansion, and market entry over the long term.

Hayward says British companies already operating in India can use the agreement to strengthen their presence and participate in India’s growth story. He also says India is already an important source of investment for the United Kingdom, which makes the trade relationship commercially significant in both directions.