India-UK FTA grants duty-free access to 95% of farm exports, eyes 20% export surge in 3 years

The deal opens up preferential access to the UK’s $37.5 billion agri-import market

India’s agricultural exports are set to receive a substantial boost following the signing of the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom on July 24, which provides duty-free access to 95 percent of Indian farm export tariff lines. The free trade agreement is projected to raise India’s agri-exports by over 20 percent over the next three years, according to official estimates.

Tariff lines refer to specific product categories listed in customs schedules for taxation.

The deal opens up preferential access to the UK’s $37.5 billion agri-import market, benefitting a wide range of Indian agricultural and processed food products including basmati rice, spices, fresh grapes, bakery items, nuts, sauces, tea, coffee and millets. Among the traditional exports expected to see a surge are Darjeeling tea from West Bengal and Araku coffee from Andhra Pradesh, which will now enter the UK market duty-free.

The agreement, however, maintains protective barriers for sensitive Indian sectors. Dairy, apples and oats have been excluded from tariff concessions to safeguard the interests of domestic farmers. “Sensitive sectors such as dairy remain protected, ensuring farmer interests are not compromised,” the government said, reiterating its cautious approach in balancing export ambition with agricultural sensitivities.

Despite the exclusion of dairy from the liberalisation package, Indian exporters of plant-based products have much to gain. Tariff elimination on goods that previously faced duties of up to 20 percent will benefit shipments of vegetable oils, oilseed derivatives, and other plant-based commodities. This is expected to further support India’s agri-processing sector and rural economy.

Plant-based commodities include agricultural products derived from crops such as oilseeds, grains, fruits, and vegetables.

The government has also highlighted the wider benefits for farmers and exporters through removal of safeguard duties, ensuring stable and penalty-free market access in the UK. Patent protection for traditional farming knowledge has been secured under the pact, while new export markets are expected to emerge for products such as jackfruit, organic herbs, and millet-based goods.

Safeguard duties are temporary tariffs imposed to protect domestic industries from import surges.

Key beneficiary states from this agreement include Punjab, Haryana, Maharashtra, Gujarat, Kerala, and several northeastern states, which are prominent contributors to India’s agri and processed food export basket. The agreement is also seen as a gateway for premium Indian products to tap into high-value UK retail chains and specialty food markets.