India’s agricultural and processed food sectors are poised for significant growth following the signing of the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom. The landmark deal, inked today in New Delhi, is expected to unlock unprecedented market access for Indian farmers, food processors, and marine product exporters.
Indian farmers are set to gain preferential access to the UK’s substantial $37.5 billion agricultural market. Under CETA, 95% of agricultural and processed food tariff lines will attract zero duty, a monumental shift from previous tariffs that could reach as high as 70% on some processed food items. This direct pathway aims to make Indian produce more competitive for UK consumers.
Key agricultural products slated for duty-free access include:
Fruits and Vegetables: A wide array of fresh and prepared Indian fruits and vegetables, benefiting farmers from states like Maharashtra (grapes, onions) and those growing spices in Kerala.
Cereals: Indian cereals, including various rice varieties like Basmati from Punjab, Himachal Pradesh, Uttarakhand, Uttar Pradesh, and Delhi, will see smoother entry.
Spices: Turmeric from Tamil Nadu and Kerala, pepper, and cardamom will become more competitive in the UK market. The UK already imports a significant portion of India’s spice exports, which are now primed for exponential growth.
Tea and Coffee: Indian tea and coffee, including specialty items such as Darjeeling Tea and Araku coffee from Andhra Pradesh, will benefit from zero duties, enhancing their competitiveness.
This comprehensive market access is projected to increase India’s agri-exports by over 20% in the next three years, contributing significantly to India’s ambitious goal of achieving $100 billion in agri-exports by 2030.
Processed Food Sector Sees Major Gains
The processed food sector stands as a major beneficiary, with tariffs on 99.7% of its tariff lines slashed from up to 70% to zero. This includes a wide range of products crucial to India’s agri-processing sector and rural economy, such as ready-to-eat meals, mango pulp and pickles, pulses, and packaged foods.
This duty elimination is expected to foster growth in food processing units nationwide, creating jobs and empowering rural communities by connecting them directly to global value chains.
Safeguarding India’s Dairy Sector
Crucially, CETA has been meticulously designed to fully protect India’s sensitive agricultural sectors, including dairy products, apples, edible oils, and oats. India has not offered any tariff concessions on these categories, safeguarding the interests of its domestic farmers and producers in these vital segments. This demonstrates a balanced approach, ensuring that while new opportunities are created, the foundational interests of India’s agricultural economy remain secure.
Marine Products Set Sail for Growth
Beyond traditional agriculture, India’s marine product exporters are poised for substantial gains. UK import duties on marine products, previously as high as 20% (with shrimp and tuna facing 4.2% to 8.5%), will now fall to zero. This opens up a significant $5.4 billion UK market for Indian seafood, directly benefiting coastal fisherfolk through improved price realization and higher procurement rates, especially in states like Andhra Pradesh, Odisha, Kerala, and Tamil Nadu. Exports of shrimp, tuna, fishmeal, and feeds are expected to see rapid growth.
Wider Benefits and Farmer Prosperity
Commerce and Industry Minister Piyush Goyal highlighted that the agreement will be a “catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators.” The provisions within CETA will also encourage innovation and promote sustainable practices, ensuring that Indian farming communities gain from easier access to the UK market and better returns for their produce. By reducing compliance costs and time-to-market, the agreement directly enhances the competitiveness of Indian agri-exporters, promoting rural prosperity and solidifying India’s place as a key player in global agricultural trade.
Experts also weighed in on the deal’s broader implications. Anil Talreja, Partner, Deloitte India, hailed it as a “watershed moment,” emphasizing its role in strengthening trade, boosting investments, and fostering cooperation in emerging sectors. Shashi Mathews, Partner, CMS INDUSLAW, noted the swift phasing down of tariffs will lay the foundation for a deeper, forward-looking alliance.
The Trade Promotion Council of India (TPCI) lauded the FTA as a landmark economic achievement. Mohit Singla, Chairman, TPCI, stated, “This landmark agreement not only grants nearly 99% of Indian goods duty-free access to the UK market, significantly boosting our export potential, but also introduces a historic provision: for the first time in any of India’s trade agreements, Indian professionals working in the UK will be exempt from paying taxes for the first three years of their employment.” He added that the agreement aligns with the vision of building globally recognized Indian brands and sets the stage for doubling India’s exports and driving rural prosperity.