India-UK trade deal: Indian farmers are set to benefit most from the India-UK Free Trade Agreement (FTA), which is expected to provide easier access to premium markets in the United Kingdom.The deal will provide Indian agricultural products with duty-free access, offering exporters better terms than those enjoyed by many European countries like Germany and the Netherlands.
Traditional Indian items such as turmeric, pepper, cardamom, as well as processed goods like mango pulp, pickles, and pulses, are likely to see improved margins and wider international reach under the new trade framework, ANI reported.Agricultural exports from India to the UK are projected to increase by more than 20% in the coming three years.The elimination of duties on over 95% of India’s agricultural and processed food items will drive this growth once the agreement takes effect.The agreement encompasses fruits, vegetables, cereals, spice mixes, fruit pulps and ready-to-eat meals. This reduction in import duties will lower costs and strengthen their position in both mainstream and ethnic retail establishments in the UK.This agreement will support India’s agricultural sector in shifting towards high-value products and expanding into international markets.India has implemented protective measures for sensitive agricultural sectors through the FTA. Dairy products, apples, oats and edible oils will maintain their existing tariffs, safeguarding domestic agricultural interests.The agreement creates possibilities for innovative products including jackfruit, millets, vegetables and organic herbs, supporting agricultural diversification and domestic price stability.The fisheries sector, particularly in Andhra Pradesh, Odisha, Kerala and Tamil Nadu, stands to benefit significantly from this agreement.The removal of duties ranging from 4.2 to 8.5% on 99% of exports, including shrimp, tuna, fishmeal and feeds, is expected to accelerate India’s seafood export growth.The UK’s marine imports, worth $5.4 billion, present substantial opportunities for India’s maritime economy.Furthermore, the agreement establishes a framework for increasing India’s premium branded exports in sectors such as coffee, tea, spices and beverages.The UK currently receives 1.7% of India’s coffee exports, 5.6% of tea exports and 2.9% of spices. These percentages are expected to rise substantially with duty elimination. Indian instant coffee will particularly benefit, becoming more competitive against European exporters in the premium market segment.According to government projections, the India-UK FTA will help accelerate exports and play a key role in reaching India’s target of $100 billion in agricultural exports by 2030. The government believes the FTA could be a game changer for farmers and food producers across the country.
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