India U.K. trade deal likely to boost farm export growth by 20%

India-U.K. CETA: Boost to Farm Exports

Context and Signing

• Deal: India-U.K. Comprehensive Economic and Trade Agreement (CETA)

• Signed by:

  • India: Commerce & Industry Minister Piyush Goyal

  • U.K.: Secretary of State for Business & Trade Jonathan Reynolds

  • Venue: Chequers, U.K., in presence of PMs Narendra Modi & Keir Starmer

Expected Benefits for India

• Agriculture exports:

  • India currently exports $36.63 billion worth of agricultural goods globally.

  • U.K. imports $37.52 billion, but only $811 million from India.

  • Duty-free access likely to raise India’s agri exports to the U.K. by 20% in next 3 years.

• Other Beneficiary Sectors:

  • Textiles, leather, chemicals, engineering goods

Tariff Reductions

• For U.K. exports to India:

  • Average tariff reduced from 15% to 3% (12 percentage point drop)

  • Tariff elimination/reduction on 90% of tariff lines, covering 92% of current U.K. exports to India

• Indian advantage in processed foods:

  • Tariffs on 99.7% lines slashed from up to 70% to 0%

Exclusions by India

• No access given to U.K. in sensitive sectors:

  • Dairy products

  • Apples

  • Oats

  • Edible oils

• Reason: To protect food security, price stability, and vulnerable farmers

India’s Competitive Edge Enhanced

• Fresh grapes: Competitive with Egypt, South Africa; advantage over Brazil

• Processed foods: Gains over U.S., China, Thailand

• CETA is a win-win, aimed at boosting India’s high-value agri-exports while protecting sensitive domestic sectors.

• Reflects India’s calibrated and strategic trade approach.