Welcome to Top of the Morning by Mint.. I’m Nelson John and here are today’s top stories.

Whisky, Work Visas & Win-Win Trade

After three years of negotiation, India and the UK have inked a landmark Free Trade Agreement, boosting bilateral trade by an estimated $34 billion annually.

Signed during PM Modi’s London visit, the deal grants duty-free access to 99% of Indian exports, benefiting key sectors like textiles, pharma, and jewellery. Indian consumers gain too—expect cheaper British cars, scotch, chocolates, soft drinks, and medical devices.

Beyond goods, the deal opens 35 UK service sectors to Indian professionals for up to 24 months, eliminates social security payments for 3 years, and skips the UK’s Economic Needs Test in 36 categories.

Commerce Minister Piyush Goyal hailed it as a $23 billion opportunity for India’s labour-intensive sectors, and a step toward inclusive growth.

From ‘India Out’ to ‘India’s In’

PM Modi landed in Malé for the second leg of his two-nation tour, becoming the chief guest at the Maldives’ 60th Independence Day celebrations.

This marks a diplomatic reset with President Mohamed Muizzu, whose early tenure saw a tilt towards China and ‘India Out’ rhetoric.

Key agenda items: maritime security, trade, and inaugurating India-funded infrastructure projects. Several MoUs will be signed, reinforcing the India-Maldives Joint Vision. Foreign Secretary Vikram Misri called it a “significant reset”—a move aimed at rebalancing regional influence.

Rubio to Macron: You’re Helping Hamas

US Secretary of State Marco Rubio lashed out at France for its decision to recognize Palestine at the UN.

Calling it “reckless” and “a slap in the face to the victims of October 7,” Rubio claimed the move boosts Hamas propaganda and damages peace efforts.

France joins a growing bloc of EU nations supporting Palestinian statehood, while the US maintains that only direct Israel-Palestine talks can lead to a viable two-state solution.

The diplomatic divide in the West over Gaza is getting sharper—and more public.

Missiles, Fighter Jets & A UN Cry for Help

A dangerous escalation between Thailand and Cambodia has left nine civilians dead after Cambodia reportedly launched rocket attacks into Thai territory.

In response, Thailand deployed six F-16s, with at least one conducting airstrikes inside Cambodia. Both sides are now trading barbs and expelling diplomats.

Cambodia is calling for an emergency UN Security Council meeting, while China has urged restraint.

Thailand has sealed borders, begun civilian evacuations, and accused Cambodia of using human shields and targeting hospitals.

The baht slipped 0.3% amid rising market anxiety. This conflict could spiral fast.

MSME Stress Clouds ₹4,765 Cr Profit

Bajaj Finance posted a solid 22% jump in Q1 profit to ₹4,765 crore, but beneath the numbers is a growing concern: stress in unsecured MSME loans.

Vice Chairman Rajeev Jain flagged over-leverage as a “single univariate pain point.” Loan loss provisions rose 26%, and restructured loans surged to ₹219 crore—five times the usual.

13 out of 17 MSME sectors are slowing or contracting, with even doctors under strain.

Gross NPAs rose to 1.03% (from 0.86% last year), and credit costs may hover near 2% for FY26.

While AUM may grow 15%, disbursements will likely remain flat or decline. Recovery, Jain warned, may take “another quarter or more.”

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