India-UK FTA: Why India’s Farmers Will Be The Biggest Winners In Historic Trade Deal

Last Updated:July 24, 2025, 08:59 IST

With enhanced access and strategic protections, the FTA will help Indian agriculture transition from volume to value, and from local to global

The FTA excludes India’s most sensitive agri sectors to protect domestic farmers. (PTI)

India and the United Kingdom are all set to sign the landmark Free Trade Agreement (FTA) on Thursday, with Prime Minister Narendra Modi beginning his two-day visit to UK to strengthen bilateral relations in key areas such as defence, trade, and technology.

A major highlight of the visit is expected to be the formal signing of the historic trade deal, which represents a landmark moment for India’s agricultural and rural economy. With duty-free access, streamlined trade protocols, and protection for India’s unique agri-heritage, the agreement sets the stage for a quantum leap in agri-exports, value-added products, and rural prosperity.

KEEPING FARMERS IN FOCUS

Agriculture sustains over 55 per cent of India’s population and remains the cornerstone of rural livelihoods and economic security. With this in mind, the FTA promotes value addition and global competitiveness and ensures inclusive benefits reach rural and marginal farmers.

With enhanced access and strategic protections, the FTA will help Indian agriculture transition from volume to value, and from local to global.

India’s farmers are poised to be the biggest winners of the FTA, which unlocks premium UK markets for their produce, matching or exceeding the benefits already enjoyed by exporters from Germany, Netherlands, and other EU nations.

Here’s how the trade deal will help India’s farmers:

Tariff Elimination on Key Crops: Indian staples like turmeric, pepper, cardamom, and processed goods like mango pulp, pickles, and pulses will enjoy duty-free access—enabling better margins and wider reach.

Massive Market Access for Farmers: Over 95 per cent of agricultural and processed food tariff lines will attract zero duties on entry into force. This will apply to fruits, vegetables, cereals, pickles, spice mixes, fruit pulps, ready-to-eat meals and processed foods. The access will significantly reduce landed costs in the UK and increase the competitiveness of Indian products across mainstream and ethnic retail chains. This, in turn, will lead to more income at the farm gate, greater incentives for quality, packaging, and certification and increased rural employment across the agri-value chain.

Sensitive Products Protected: The FTA excludes India’s most sensitive agri sectors to protect domestic farmers. There are no tariff concessions on dairy products, apples, oats, and edible oils. The exclusions reflect India’s calibrated trade strategy—one that prioritises food security, domestic price stability, and vulnerable farming communities.

Market Boost: Duty-free access is expected to increase agri exports by over 20 per cent in the next three years, contributing to India’s goal of $100 billion agri-exports by 2030.

Certification Made Simple: Provisions related to Technical Barriers to Trade (TBT) will streamline certification, cutting down time and cost for exporters.

Diversification & Resilience: The FTA creates new market access for emerging products such as jackfruit, millets, vegetables, and organic herbs, helping farmers diversify and buffer against domestic price volatility.

UNLEASHING THE POWER OF BLUE ECONOMY

India’s fisheries sector—especially in Andhra Pradesh, Odisha, Kerala, and Tamil Nadu—will see a dramatic expansion through access to the UK’s $5.4 billion marine import market.

Shrimp, tuna, fishmeal, and feeds—currently taxed between 4.2–8.5 per cent—will become completely duty-free, unlocking rapid export growth. Apart from this, the FTA’s Sanitary and Phytosanitary (SPS) measures will help Indian exporters meet UK standards with ease, reducing rejections and strengthening trust. Despite strong demand, India’s current share in UK marine imports is only 2.25 per cent—leaving massive room for expansion.

The FTA strategically positions India to outcompete or match leading global exporters in several high-potential product categories. Indian exporters will now enjoy the same market access as Germany or Netherlands, leveling the playing field.

Apart from this, the deal seeks to lay the foundation for India’s move into high-margin, branded exports, especially in coffee, spices, beverages, and processed food.

Coffee & Instant Coffee: The UK already absorbs 1.7 per cent of India’s coffee. Duty-free access will help Indian instant coffee compete with EU exporters like Germany and Spain, unlocking growth in a premium, fast-growing segment.

Tea & Spices: The UK is a key buyer of India’s tea (5.6 per cent) and spices (2.9 per cent). With zero tariffs, these shares are now primed for exponential growth.

Oilseeds: The UK market will enable Indian oilseed exporters to expand their consumer base and boost competitiveness through tariff elimination and simplified trade protocols.

Craft Alcobev Sector: Indian craft drinks like feni from Goa, artisanal wines from Nashik, and toddy from Kerala will now enjoy Geographical Indication (GI) protection and shelf space in high-end UK retail and hospitality chains.

These reforms will help transform India from a commodity supplier to a value-added powerhouse in the global food and beverage trade, promote job creation and rural prosperity, elevate Indian agri-brand equity and place India at the forefront of global agri-trade.

From the highlands of Assam to the coasts of Andhra Pradesh, and from Punjab’s fields to Kerala’s spice farms, the India-UK FTA is set to empower producers, elevate products, and energise exports—turning India’s agri-sector into a global force for growth, resilience, and innovation.

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The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d...Read More

The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d...

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News business India-UK FTA: Why India’s Farmers Will Be The Biggest Winners In Historic Trade Deal