This Week in Explainers: How a trade pact with the UK benefits India

It’s been a week of diplomatic wins for India. Prime Minister Narendra Modi travelled to the United Kingdom and the Maldives, both visits historic in their own way.

In the UK, the much-awaited Free Trade Agreement (FTA) was signed. For India, this is the first big trade pact with a major Western nation. And for Britain, it is the most significant deal after Brexit. The agreement is going to be a boon to both nations. We tell you all about it.

After the UK, Modi headed to the Maldives for a two-day visit, starting Friday (July 25). The trip signals a reset in ties. The PM, who was invited by Maldvian President Mohamed Muizzu, will attend the island nation’s 60th Independence Day celebrations as a guest of honour. It’s a long way from the ‘India Out’ campaign that hit ties between the two nations when Muizzu came to power.

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Talking about the neighbourhood, China is always looking to poke India. It has started construction of the world’s largest dam near Arunachal Pradesh. India is building another dam on the Brahmaputra. Are water wars in the making?

Now, let’s move to Indian politics. The shock resignation of Vice President Jagdeep Dhankar created quite a stir. While the VP cited health as the reason for stepping down, there is more to it than meets the eye, according to buzz in political circles.

In defence news, the Indian Air Force’s workhorse, the MiG-21, will be phased out of active service by September. It will be replaced by the newer Tejas Mk1A fighter jets.

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In our weekly roundup, we bring you stories about India that you shouldn’t miss.

1. All eyes have been on the India-UK Free Trade Agreement. The much-awaited pact, which was in the making for years, was finally signed on Thursday (July 24) during Prime Minister Narendra Modi’s UK visit. So what’s this landmark deal about? How will India benefit from it? And what will get cheaper? We answer the big questions.

2. Ties between India and the Maldives have come full circle. The two sides have historically enjoyed deep-rooted ties. While there was a strain with Mohamed Muizzu’s “India Out” campaign, New Delhi took an engagement-over-escalation approach. Now, PM Modi’s visit was seen as a strategic embrace, a reset of ties. However, India has always been a bankable neighbour, helping build airports, a hospital, a cricket stadium and more in the Maldives.

A memorable welcome in Maldives. Strong ties between our nations will greatly benefit our people. 🇮🇳 🇲🇻 pic.twitter.com/qQVoB51FJw

— Narendra Modi (@narendramodi) July 25, 2025

3. China is calling it the “project of the century”. It has started building the world’s biggest hydropower dam on the Yarlung Tsangpo. This river flows into India – it’s the Brahmaputra. New Delhi is watching closely. India has also sped up work on a dam in Arunachal Pradesh’s Siang district. Is a water war between the two neighbours inevitable?

4. From geopolitics, we shift our attention to domestic politics. In a move that came as a big surprise, Jagdeep Dhankhar resigned as vice president on Monday night (July 21). While he cited medical reasons for his sudden decision, the Opposition cast doubt over it. The announcement came hours after Dhankhar presided over the sitting of the Rajya Sabha as chairperson on the first day of the monsoon session of Parliament. So why did he step down?

5. Dhankhar’s resignation leaves the post of the vice president vacant. The VP also serves as ex officio chairman of the Rajya Sabha. So what happens now? How will the next vice president be elected? We explain.

6. After 62 years in service, the Indian Air Force will phase out the MiG-21 fighter jet aircraft by September 2025. It will be replaced by the Tejas Light Combat Aircraft (LCA) Mark 1A. The new version of the Tejas is being developed by Hindustan Aeronautics Limited (HAL). Here’s how it will boost India’s defence.

7. Our last story is about a scandal from Uttar Pradesh. It is unlike any you may have heard before. Harshvardhan Jain, a 45-year-old from Ghaziabad, posed as the ambassador of Westarctica, an unrecognised micronation in Antarctica. He ran a fake embassy from a bungalow for at least seven years and has now been arrested. Here’s how the scam unfolded.

That’s all from us this week. If you are hooked on the news, you can find more such explainers here.