India-UK FTA: A Game Changer for Indian Agriculture and Food Processing

The India-UK free trade agreement (FTA) is poised to revolutionize India's agricultural landscape, providing unprecedented access to the UK's premium markets. Indian farmers stand to gain immensely, with their produce likely to enjoy benefits surpassing those currently seen by European exports from nations such as Germany and the Netherlands.

Key Indian staples like turmeric, pepper, and cardamom, along with a variety of processed products such as mango pulp and pickles, will receive duty-free entry into the UK. This access is expected to bolster profit margins and expand market reach, potentially increasing India's agricultural exports to the UK by more than 20% over the next three years.

The FTA will facilitate duty-free access for over 95% of India's agricultural and processed food tariff lines once implemented. This move includes a variety of goods, from fruits and spices to ready-to-eat meals, and will reduce landed costs significantly, enhancing competitiveness across UK retail platforms.

Additionally, the agreement encourages a shift in focus for Indian agriculture—from high-volume production to high-value products and global market expansion—while ensuring safeguards for sensitive sectors like dairy and apples.

Opportunities also arise for new products such as jackfruit and organic herbs, promoting diversification among farmers and aiding in price stability domestically. The FTA is a boon for India's fisheries, especially along coastal states, potentially enabling rapid growth in seafood exports through zero-duty access to the UK's sizeable marine import market.

Finally, the agreement is set to boost India's high-margin branded export segments, with coffee, tea, and spices likely to witness significant growth due to tariff eliminations. The overall impact of the India-UK FTA could be transformative, aligning with India's aspirations to reach USD 100 billion in agricultural exports by 2030.

(With inputs from agencies.)