India–UK CETA Unlocks Major Gains for Marine Exports, Coastal Economy

In a transformative step for bilateral trade and the Indian fisheries sector, India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025, marking a new era of economic cooperation. The pact was formalized in the presence of Prime Minister Shri Narendra Modi and UK Prime Minister Sir Keir Starmer, with India’s Minister of Commerce and Industry, Shri Piyush Goyal, and UK Secretary of State for Business and Trade, Mr. Jonathan Reynolds, signing the agreement.

CETA is set to significantly boost India’s export capabilities, especially in labour-intensive and high-potential sectors such as marine products, textiles, leather goods, and gems & jewellery, by granting zero-duty access on 99% of tariff lines. Among these, India’s seafood industry stands to benefit the most, given the UK’s large and stable demand for high-quality, sustainable marine products.

Zero-Duty Access: A Breakthrough for Indian Seafood

At the heart of the agreement is comprehensive tariff liberalization for the marine sector. The UK has removed all import duties on a wide spectrum of Indian fish and seafood products across multiple Harmonized System (HS) Codes, including:

• HS Code 03: Fish, crustaceans, molluscs, and aquatic invertebrates (e.g., shrimp, tuna, pomfret, squid, cuttlefish, lobsters)

• HS Code 05: Marine biological products like coral, cowries, and Artemia

• HS Code 15: Fish oils and marine-derived fats

• HS Codes 1603/1604/1605: Processed and preserved seafood, caviar, and extracts

• HS Code 23: Fish meal, shrimp feed, and related byproducts

• HS Code 95: Fishing gear (rods, reels, hooks, etc.)

Prior to CETA, these items attracted import tariffs ranging from 0% to 21.5%, with the higher end significantly restricting the competitiveness of Indian exporters. With duty-free access now guaranteed for all items in UK tariff category ‘A’, Indian seafood exporters can now directly compete with global players from Vietnam and Singapore—both of which already enjoy FTA benefits under UK-VFTA and UK-SFTA.

UK Market: A High-Potential Destination for Indian Exporters

India’s marine exports to the UK stood at $104 million (₹879 crore) in FY 2024–25, of which $80 million (77%) came from frozen shrimp, particularly Vannamei shrimp (Litopenaeus vannamei). Other major products include black tiger shrimp, frozen squid, lobsters, and frozen pomfret. Despite the UK’s $5.4 billion seafood import market, India’s share was just 2.25%—a gap that CETA now seeks to close.

Industry projections suggest a 70% increase in exports to the UK in the coming years, spurred by price competitiveness, superior traceability, and diversification into value-added products.

Empowering Coastal States and Livelihoods

The benefits of CETA are poised to ripple across India’s coastal economy, particularly in states like Andhra Pradesh, Kerala, Maharashtra, Tamil Nadu, and Gujarat—already leaders in marine exports. These regions are expected to attract greater investment in cold chain infrastructure, quality certification, and export compliance. Additionally, the agreement provides an incentive for Indian exporters to meet the UK’s stringent sanitary and phytosanitary (SPS) standards, helping upgrade the entire supply chain.

The fisheries sector is critical to India’s rural economy, supporting the livelihoods of over 28 million people and contributing about 8% to global fish production. Between 2014–15 and 2024–25, India’s seafood exports grew from 10.51 lakh metric tonnes to 16.85 lakh metric tonnes, a 60% volume increase. Export value soared from ₹33,441 crore to ₹62,408 crore (88% growth). Notably, exports of value-added seafood tripled to ₹7,666 crore, reflecting India’s gradual move towards high-end consumer markets.

Strategic Trade Diversification and Global Positioning

India has traditionally relied on markets like the United States, China, and Japan for seafood exports. However, CETA offers a strategic opportunity to diversify into the UK market—a wealthy, seafood-dependent country with a strong appetite for sustainably sourced marine products.

With improved traceability systems, skilled processing manpower, and vast production capacity, India is now better positioned than ever to capitalize on global demand shifts. Furthermore, the agreement removes tariff disadvantages and puts India on an equal footing with FTA partners like Vietnam and Singapore, leveling the playing field for Indian exporters.

While most products under CETA receive preferential access, HS Code 1601 (sausages and similar items) remains excluded under category ‘U’, meaning it will not benefit from tariff reductions.

Long-Term Impact and Vision

The India–UK CETA is more than just a trade deal—it represents a strategic pivot in India’s external trade policy and global ambitions in the blue economy. It strengthens India’s position as a reliable supplier of sustainable seafood, aligns with Atmanirbhar Bharat goals by boosting domestic capabilities, and reinforces India’s role as a responsible player in global marine trade.

As India aims to become a $1 trillion export economy, CETA demonstrates how smart, sector-targeted trade agreements can uplift rural livelihoods, generate jobs, and elevate India’s brand in global supply chains.