Selective liberalisation boosts India’s agri-export competitiveness while protecting sensitive domestic sectors. Fresh grapes, honey, and mixed vegetables from India get zero-duty access, while India allows controlled entry of UK cranberries, durians, and mushrooms.
The recently signed Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom is poised to reshape bilateral agricultural trade flows. The agreement grants Indian farm exports expanded access to the UK market, with over 95 per cent of Indian agricultural tariff lines now eligible for zero-duty treatment. This substantial opening is expected to elevate India’s export competitiveness, aligning Indian producers with major European players who currently benefit from duty-free entry into the UK.
Niche Concessions to British Farm Products
In exchange, India has agreed to provide limited tariff reductions on a tightly defined list of British agricultural goods. These include cranberries, durians, leeks, specialty mushrooms, artichokes, and lettuce. The selected items represent high-value, low-volume imports, which are likely to serve India’s urban premium retail and foodservice segments. Their inclusion in the pact suggests a calibrated approach to import liberalisation, designed to avoid displacement of domestic farm incomes.
Domestic Sensitivities Remain Fully Protected
The government has made it clear that there will be no tariff relief on high-volume and politically sensitive agricultural commodities. Items such as apples, oranges, pineapples, and pomegranates remain excluded from the agreement. Likewise, Chapter 4 of India’s tariff schedule, covering dairy products such as milk, butter, cheese, and ghee, has been preserved in full. All major cereals, including rice, wheat, maize, and millets, also remain protected—ensuring there is no risk of price suppression or import surges in staple food sectors.
Immediate Gains for High-Growth Export Categories
Several Indian products are expected to benefit immediately from the new zero-duty access to the UK market. Fresh grapes, onions, natural honey, and mixed vegetables are well positioned to tap into British demand. Processed food categories—such as preserved fruits, vegetable sauces, and baked goods like breads, cakes, and pastries—stand to gain from reduced tariff barriers that had previously made Indian products less competitive.
Strategic Balance Between Openness and Sovereignty
The structure of the agreement reflects a strategic equilibrium. It advances India’s trade liberalisation agenda while maintaining guardrails around critical domestic livelihoods. The decision to allow only premium, low-volume British imports indicates an openness to globalisation tempered with food sovereignty and rural security considerations. The CETA’s approach to agri-trade liberalisation serves as a policy model that balances export ambitions with domestic resilience.
Catalysing Downstream Growth and Agri-Tech Integration
Beyond direct trade flows, the CETA is expected to spur momentum in India’s downstream agri-industries. Food processing, logistics, cold chain development, and traceable horticulture supply chains could all benefit from increased export volumes and exposure to UK market standards. The agreement also creates pathways for alignment with sustainability goals, packaging innovation, and food safety certifications—factors that are increasingly crucial in high-value global markets.
A New Era for India’s Agri-Export Economy
With more than 95 per cent of tariff lines liberalised for Indian agricultural products entering the UK, the India–UK CETA marks a watershed moment for India’s farm exports. It strengthens India’s position as a credible, diversified supplier to mature markets, while setting a precedent for future agri-trade negotiations. The agreement connects India’s farmgate producers to premium global retail ecosystems, opening a new era where export growth is anchored in both value and volume.