India-UK FTA: Zero-duty access to boost agri-exports by 50% while protecting farmers

The India-UK Free Trade Agreement (FTA) has been negotiated with a strong focus on protecting the interests of Indian farmers while also exploring strategic opportunities for growth in the agricultural sector, government sources say. In a landmark breakthrough for the agricultural and processed food sectors, over 95% of Indian tariff lines will now enjoy zero-duty access to the UK market, an opportunity projected to boost India’s agri-exports by over 50% in the next three years.

The trade deal will allow farmers to fetch premium prices for their products in the UK market, granting parity with major EU exporters like Germany and the Netherlands, which currently enjoy zero tariffs. Significant gains are expected in the exports of fruits, particularly grapes; bakery items; onions and mixed vegetables; natural honey; preserved vegetables, fruits, and nuts; processed food preparations; and sauces. Here's how the exports of agriculture and processed food products will benefit these sectors under the India-UK FTA:

Q1: What are the benefits to agricultural stakeholders?

The UK government has committed to completely eliminating tariffs on certain APEDA-Scheduled Products originating from India and imported into the UK. Without the India-UK FTA in force, imports of such APEDA-Scheduled Products originating in India would be at a competitive disadvantage vis-à-vis other countries that have an FTA with the UK or are accorded tariff benefits under some other scheme, such as the Developing Countries Trading Scheme of the UK Government. Under the CETA, India will see a boost in export volumes, enhanced competitiveness for agri-SMEs, regional employment and scale gains, and a competitive edge over global suppliers.

Q2: Which Indian agri-products will benefit the most under the CETA?

Some of the key winners include: fresh grapes (8% tariff removed); fresh onions (4.5% tariff removed); natural honey (16% tariff removed); bananas (16% tariff + £95/tonne duty removed); sweet biscuits (4.5% removed); bakery products (cakes, biscuits); food preparations (~5% removed); and nuts and seed mixtures (3.6% removed).

Q3: Are Indian farmers insulated from the risk of import surges or price undercutting on account of CETA?

In line with India's commitment to safeguarding its agricultural sector, no tariff concession or market access has been granted for key crops grown domestically, particularly those that are sensitive in terms of food security and farmer livelihoods. Products such as wheat, rice, maize, jowar, bajra, nuts (cashew, almond, walnut), millets, and pulses—staples for Indian farmers and consumers—have been kept out of the FTA's liberalisation schedule.

Sensitive products other than staples have also been protected by granting no tariff concessions, such as: edible oils (e.g., soybean oil, palm oil, mustard oil, groundnut oil); oil seeds (like soybean, groundnut, mustard); certain fruits (like apple, pomegranate, pear, peach, plum, guava, lychee, mango, grapes); and nuts (almonds, cashew nuts, dates); vegetables; pulses; cut flowers; spices; cardamom; and long pepper, among others.

Q4: Are exports of APEDA-Scheduled Products immediately eligible for tariff benefits?

No, APEDA-Scheduled Products are not immediately eligible for tariff benefits under the India-UK FTA. India and the UK only signed the FTA on 24 July 2025. The benefits available to exporters of APEDA-Scheduled Products under the India-UK FTA will become effective only upon the ‘entry into force’ of the India-UK FTA. As per Article 30.6 of the India-UK FTA, it enters into force under the following circumstances: a. 60 days after the date on which India and the UK exchange written notifications confirming that they have completed their respective domestic legal requirements necessary for the entry into force; or b. on such other date as India and the UK may agree. Exporters are advised to keep track of news updates from the Government of India on official sources such as the Press Information Bureau to ascertain when the FTA will come into force.

Q5: What will be the impact of the India–UK FTA on India's marine exports?

The India–UK FTA is poised to significantly boost India's marine exports by eliminating existing UK tariffs, which currently range between 4.2% and 8.5% on key products like shrimp. With the removal of these tariffs, Indian exporters will enjoy duty-free access to the UK market, improving their price competitiveness and market reach. This is expected to unlock strong growth opportunities for a range of marine products, particularly shrimp, tuna, fish, fishmeal, and aquafeeds.