The recently signed India-UK Free Trade Agreement (FTA) has opened a new chapter in India’s agricultural and economic landscape. By securing zero tariffs on 95% of agricultural and processed food items, the agreement is set to revolutionize the export potential of Indian farmers and food processors. While safeguarding domestic industries, the FTA provides duty-free access for major Indian staples like turmeric, pepper, cardamom, mango pulp, pickles, pulses, and marine products such as shrimp and tuna in the UK market.
Prime Minister Narendra Modi, announcing the deal on July 24, 2025, emphasized that this Comprehensive Economic and Trade Agreement (CETA) will empower farmers, women, youth, MSMEs, and other stakeholders by creating new opportunities for inclusive growth.
7 Key Points: Why India-UK FTA is a Game-Changer for Indian Agriculture
1. Unlocking a $37.5 Billion UK Market for Indian Farmers
The UK imports agricultural products worth USD 37.52 billion annually, but India’s share has been just USD 811 million. With the FTA, Indian farmers can now tap into this premium market, competing with global exporters from Germany, the Netherlands, and other EU nations.
2. Zero Duties on 95% Agricultural and Processed Foods
Over 95% of agricultural and processed food tariff lines will now enjoy zero duties. This includes fruits, vegetables, cereals, pickles, spice mixes, fruit pulps, ready-to-eat meals, and other processed foods.
3. Boost in Export Revenue for Indian Farmers
Duty-free access will significantly reduce the landed cost of Indian products in the UK market. This move is expected to boost agricultural exports by over 20% in the next three years, helping India achieve its ambitious target of USD 100 billion agri-exports by 2030.
4. New Opportunities for Emerging Crops and Marine Products
The FTA opens doors for emerging products like jackfruit, millets, and organic herbs, along with 99% zero-duty access for marine products such as shrimp, tuna, fishmeal, and feeds. With the UK’s USD 5.4 billion marine import market, India’s current 2.25% share is set to rise significantly.
5. Boost to Branded and High-Margin Indian Products
Branded products like coffee, spices, artisanal beverages, and processed foods will see enhanced demand in the UK. Duty-free access for Indian instant coffee will allow it to compete strongly with EU exporters like Germany and Spain.
6. Protection and Promotion of Indian GI Products
Indian craft drinks like Goa’s feni, Nashik’s artisanal wines, and Kerala’s toddy will receive Geographical Indication (GI) protection in the UK. This will create a premium niche for Indian beverages in high-end UK retail and hospitality chains.
7. A Boost for India’s Food Processing Sector
India exports USD 14.07 billion worth of processed food products annually, while the UK imports USD 50.68 billion worth of such products. With Indian products currently holding only USD 309.5 million, this FTA will expand India’s presence in this lucrative market. Key beneficiaries will include states like Maharashtra (grapes, onions), Gujarat (groundnuts, cotton), Punjab and Haryana (basmati rice), Kerala (spices), and North-Eastern states (horticulture).
Why This FTA is a Game-Changer
The India-UK FTA balances export growth with domestic safeguards. By excluding dairy products, edible oils, and apples, India has protected its farmers while unlocking global opportunities. This strategic deal is expected to create more jobs, increase farmer income, and elevate India’s global trade footprint.