India-UK FTA: Farmers Win Big, Dairy Stays Protected
The landmark India-UK Free Trade Agreement (FTA) is poised to deliver substantial benefits to Indian farmers, primarily by opening up new and expansive markets in the United Kingdom for their diverse agricultural products. Crucially, this agreement meticulously safeguards India’s sensitive domestic sectors, including dairy products, edible oils, and apples, by explicitly excluding them from any tariff concessions to the UK. This strategic exclusion underscores India’s commitment to protecting its vast dairy industry and the livelihoods of its dairy farmers.
A major triumph for India in this FTA is securing zero duties on an impressive 95% of its agriculture and processed food items destined for the UK. This includes a wide array of staple commodities such as turmeric, pepper, and cardamom, alongside processed goods like mango pulp, pickles, and various pulses. Furthermore, high-value marine products, including shrimp and tuna, will now enjoy duty-free access, significantly boosting their competitiveness in the UK market and positively impacting India’s agribusiness exports.
The economic impact of this agreement is projected to be profound. India anticipates a substantial increase in its agri-exports, with forecasts suggesting growth of over 20% within the next three years. This surge aligns perfectly with India’s ambitious national objective of reaching USD 100 billion in agri-exports by the year 2030, reinforcing its position as a major player in the global food trade.
For the international dairy community and trade analysts, the India-UK FTA offers a key insight into India’s protective stance on its dairy sector. While other agricultural segments gain significant market access, the clear decision to withhold tariff concessions on dairy products from the UK highlights India’s strategic priority to shield its domestic milk production and dairy processing industries from increased foreign competition, ensuring the stability and growth of its internal dairy economics.
