Indian farmers are likely to be among the biggest beneficiaries of the India-UK free trade agreement (FTA).
Following formalisation, the FTA is expected to open premium markets in the UK to Indian produce, offering similar or even better benefits than those enjoyed by exporters from European countries such as Germany and the Netherlands.
Indian staples such as turmeric, pepper, and cardamom, along with processed products like mango pulp, pickles, and pulses, will get duty-free access, improving their margins and market reach. India’s agriculture exports to the United Kingdom are expected to grow by over 20 per cent over the next three years. This increase will be driven by duty-free access for a wide range of Indian agricultural and processed food products.
Over 95 per cent of India’s agricultural and processed food tariff lines will face zero duties once the agreement is enforced. These include fruits, vegetables, cereals, spice mixes, fruit pulps, ready-to-eat meals, and more.
This move will reduce the landed cost of these goods in the UK and enhance their competitiveness in both mainstream and ethnic retail chains. The FTA will help the Indian agriculture sector transition from a focus on high volume to high value products, and from catering to local markets to expanding globally. At the same time, through the FTA, India has taken steps to protect its most sensitive agricultural sectors. There will be no tariff concessions on dairy products, apples, oats, and edible oils, ensuring domestic farmers in these areas are not affected.
The FTA also opens up opportunities for new and emerging products, such as jackfruit, millets, vegetables, and organic herbs, encouraging farmers to diversify and better manage domestic price fluctuations. The agreement will also provide a major boost to India’s fisheries sector, particularly in coastal states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. By offering zero-duty access for 99 per cent of exports, such as shrimp, tuna, fishmeal, and feeds, which currently face duties ranging from 4.2 to 8.5 per cent, the FTA is expected to unlock rapid growth in India’s seafood exports. The UK’s marine import market, valued at USD 5.4 billion, offers a huge opportunity for India’s blue economy.
Additionally, the FTA lays the groundwork for expanding India’s high-margin branded exports in products such as coffee, tea, spices, and other beverages. Currently, the UK accounts for 1.7 per cent of India’s coffee exports, 5.6 per cent of tea exports, and 2.9 per cent of spices. With the elimination of tariffs, these segments are expected to grow significantly.
In particular, Indian instant coffee will be better positioned to compete with European exporters, such as Germany and Spain, in the fast-growing premium segment. Overall, as per the government, India-UK FTA is expected to be a game changer for the country’s agricultural and food processing sectors. The export boost will also support India’s larger goal of achieving USD 100 billion in agricultural exports by 2030.
