India-UK FTA: Over 95% Indian farm exports to get duty-free market access

India's FTA with the UK boosts agri and food exports with 95% items duty-free, while protecting dairy, oils, and apples. Farmers, seafood, and processed goods sectors set to gain significantly

India has safeguarded the interests of its farmers in the Free Trade Agreement (FTA) with the United Kingdom by ensuring that a range of agricultural items -- such as dairy products, edible oils, apples, and oats -- do not face import duties, according to a report by the Press Trust of India.

 

As part of the deal, around 95 per cent of Indian agricultural and processed food exports will now enter the UK without import duties. This includes everyday staples such as turmeric, pepper, and cardamom, as well as processed foods like mango pulp, pickles, and pulses. Marine exports including shrimp and tuna will also benefit.  The UK currently imports agricultural goods worth $37.52 billion annually, but Indian products account for only $811 million of that. 

 

"India's farmers are poised to be the biggest winners of the FTA, which unlocks premium UK markets for their produce, matching or exceeding the benefits already enjoyed by exporters from Germany, the Netherlands, and other EU nations," a commerce ministry official told PTI.

Wider range of products to gain from duty relief

 

The FTA will reduce the landed cost of various Indian goods in the UK, including fruits, vegetables, cereals, spice blends, fruit pulp, ready-to-eat meals, and other processed items, improving their competitiveness.

 

"Duty-free access is expected to increase agri exports by over 20 per cent in the next three years, contributing to India's goal of $100 billion agri-exports by 2030," the official said.

 

Newer export categories like jackfruit, millets, and organic herbs are also expected to benefit from this agreement.

Major boost for India’s blue economy

 

Nearly 99 per cent of Indian marine exports to the UK -- including shrimp, tuna, fishmeal, and feed -- will now enter the market without duties. Currently, these attract tariffs between 4.2 per cent and 8.5 per cent. 

 

"Despite the UK's $5.4 billion marine import market, India's share remains at just 2.25 per cent, underscoring a significant untapped export opportunity," the official pointed out.

Support for premium and branded exports

 

Indian branded products such as coffee, tea, spices, and beverages are set to gain a foothold in the UK market. At present, only 1.7 per cent of India’s coffee exports go to the UK.

 

"Stating that the UK consumes 1.7 per cent of India's coffee, the official said duty-free access will help Indian instant coffee compete with EU exporters like Germany and Spain."

 

Indian tea already has a 5.6 per cent market share in the UK, while spices make up 2.9 per cent. With tariffs removed, these figures are expected to rise.

 

"Indian craft drinks like feni from Goa, artisanal wines from Nashik, and toddy from Kerala will now enjoy Geographical Indication (GI) protection and shelf space in high-end UK retail and hospitality chains," the official said.

 

The FTA is likely to support India’s growing food processing industry. While India exports processed food and agricultural goods worth $14.07 billion globally, its share in the UK market is just $309.5 million out of the UK’s $50.68 billion import demand.

Farmers across states to benefit

 

Farmers from different regions of India are expected to see positive effects. Notable beneficiaries include:

• Maharashtra (grapes, onions)
• Gujarat (groundnut, cotton)
• Punjab and Haryana (basmati rice)
• Kerala (spices)
• Northeastern states (horticulture)

'More than a trade pact'

Speaking on the FTA, MK Dhanuka, Chairman, Dhanuka Agritech Limited, said, “India-UK Free Trade Agreement is a landmark moment for Indian agriculture, providing zero-duty access to the UK market for a range of commodities like bananas, baby corn, grapes, and mushrooms. This preferential market access is likely to increase India's agri-exports by close to 20 per cent within the next three years. Apart from trade benefits, the agreement inspires farmers to adapt to international quality standards, whereby packaging, traceability, and sustainability are enhanced. The UK's acknowledgement of India's organic and sustainable production mechanisms will increase buyer confidence and drive demand. The lower tariffs on UK machinery imports may also allow Indian farmers to acquire agri-tech solutions at affordable prices. All in all, this deal not only reinforces India's role as a world agri-export hub but also helps promote rural income rise, technological upgradation, and greater research and innovation cooperation between the two countries.”  Speaking on the issue, Abhimanyu Munjal, MD & CEO, Hero FinCorp Ltd, said, "The India-UK FTA is more than a trade pact -- it’s a launchpad for India’s entrepreneurs to tap global demand, scale faster, and lead with confidence. A proud moment in our journey to an Atmanirbhar Bharat."  In a similar vein, Anurag Sehgal, Principal, Price Waterhouse & Co LLP, said, "The India–UK Free Trade Agreement, signed today, is poised to be a transformative deal for both the countries, aiming to double bilateral trade to $120 billion by 2030. The agreement is notably comprehensive, covering tariff reductions on 99 per cent of India’s exports to the UK. And it will benefit sectors like textile, leather, engineering goods, toys, electric vehicles and other manufactured products. Also, Indian consumer can now access select UK products like whisky, cars and some food items, thereby making availability of the quality products cheaper to the consumers. Further, enhanced commitments on IT, financial and educational services will also benefit both the countries."