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HomeNewsBusinessTest4 India-UK FTA grants duty-free access to 95% of farm exports

Test4 India-UK FTA grants duty-free access to 95% of farm exports

Dairy remains protected; 20 percent duty on vegetable oils removed for Indian exports

July 25, 2025 / 05:52 IST
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Tariff lines refer to specific product categories listed in customs schedules for taxation.

The deal opens up preferential access to the UK’s $37.5 billion agri-import market, benefitting a wide range of Indian agricultural and processed food products including basmati rice, spices, fresh grapes, bakery items, nuts, sauces, tea, coffee and millets. Among the traditional exports expected to see a surge are Darjeeling tea from West Bengal and Araku coffee from Andhra Pradesh, which will now enter the UK market duty-free.

The agreement, however, maintains protective barriers for sensitive Indian sectors. Dairy, apples and oats have been excluded from tariff concessions to safeguard the interests of domestic farmers. “Sensitive sectors such as dairy remain protected, ensuring farmer interests are not compromised,” the government said, reiterating its cautious approach in balancing export ambition with agricultural sensitivities.

Despite the exclusion of dairy from the liberalisation package, Indian exporters of plant-based products have much to gain. Tariff elimination on goods that previously faced duties of up to

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