New UK Trade Deal to Unlock Major Growth for India's Farm and Food Sectors
India's agricultural and processed food sectors are poised for a period of significant growth following the signing of the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom. The landmark deal is set to provide Indian farmers, food processors, and marine exporters with unprecedented, duty-free access to the UK's substantial $37.5 billion agricultural market.
Unlocking a Lucrative Market for Farmers
At the heart of the agreement is a monumental shift in trade terms. Under CETA, 95% of India's agricultural and processed food exports to the UK will now attract zero duty. This is a dramatic change from previous tariffs, which could be as high as 70% on some processed food items. This move is designed to make a wide range of Indian produce highly competitive for British consumers.
Key agricultural products that will now have duty-free access include:
- Fruits and Vegetables: A wide variety of fresh and prepared produce, directly benefiting farmers in states known for specific crops, like grapes and onions from Maharashtra.
- Cereals: Various Indian cereals, including premium Basmati rice, will now have a smoother entry into the UK market.
- Spices: India's world-renowned spices, such as turmeric and pepper, are primed for significant growth in a market that already values them highly.
- Tea and Coffee: Specialty products like Darjeeling Tea and Araku coffee will become more competitive, enhancing their global standing.
This comprehensive market access is expected to boost India's agri-exports by over 20% in the next three years alone.
Major Gains for Processed Food and Marine Exports
The processed food sector is one of the biggest winners, with tariffs on 99.7% of its products being slashed to zero. This will provide a major impetus to India's food processing industry, creating jobs and empowering rural communities by connecting them to global supply chains.
Similarly, India's marine product exporters are set to see substantial gains. UK import duties on seafood, previously as high as 20%, will now be eliminated. This opens up a $5.4 billion market for Indian shrimp, tuna, and other marine products, which will directly benefit coastal fishing communities through better prices and higher demand.
A Balanced Approach: Protecting Sensitive Sectors
A crucial and carefully negotiated aspect of the CETA is the robust protection it provides for India's sensitive agricultural sectors. India has not offered any tariff concessions on key domestic products, including dairy, apples, edible oils, and oats. This ensures that while the agreement opens up new export opportunities, the livelihoods of millions of Indian farmers in these vital segments are fully safeguarded.
To sum up, the India-UK CETA has been hailed as a "watershed moment" by experts. It is more than just a trade deal; it is a strategic tool for inclusive growth. By creating new pathways to a major global market while protecting its core agricultural interests, India has crafted an agreement that promises to boost rural prosperity and solidify its position as a key player in global food trade.
