India-UK FTA inked; India’s agri exports to soar by 20 pc

 

In a historic step, the India-UK free trade agreement (FTA) was signed in the presence of PM Narendra Modi and UK PM Keir Starmer here on Thursday. The agreement has been finalised with an aim to enhance bilateral trade to $120 billion by 2030, effectively doubling the current trade volume between both nations. 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. 

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.

The UK said Indian consumers will benefit from improved access to the best British products -- from soft drinks and cosmetics to cars and medical devices -- as average tariffs will drop from 15% to 3% after the FTA kicks in.

The UK already imports 11 billion pounds in goods from India but liberalised tariffs on Indian goods will make it easier and cheaper for British consumers and businesses to buy Indian products and boost Indian businesses’ exports to the UK, it said in a statement, as per a report.

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