India's agricultural sector is set to experience a significant boost following the signing of a Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom. This landmark deal, finalized on July 24, 2025, is poised to enhance bilateral trade relations and provide Indian farmers with greater access to the UK market.

The agreement ensures that approximately 95% of Indian agricultural and processed food exports will enter the UK without import duties. This includes staples such as turmeric, pepper, and cardamom, as well as processed foods like mango pulp, pickles, and pulses. Marine exports, including shrimp and tuna, will also benefit from this duty-free access. The elimination of duties is projected to increase India's agricultural exports by over 20% in the next three years. This will contribute significantly to India's goal of achieving $100 billion in agricultural exports by 2030.

The India-UK FTA gives Indian farm products an advantage over European exporters from countries like Germany and the Netherlands. Traditional Indian spices, processed foods, fruits, vegetables, cereals and ready-to-eat meals will receive duty-free entry, enhancing their profit margins and distribution scope. The agreement also creates new market access for emerging products like jackfruit, millets, and organic herbs, helping farmers diversify and stabilize against domestic price volatility.

Several states are expected to benefit significantly from this trade deal. Maharashtra (grapes, onions), Gujarat (groundnut, cotton), Punjab and Haryana (basmati rice), Kerala (spices), and states in the Northeast (horticulture) are among those that stand to gain. The fisheries sector, particularly in Andhra Pradesh, Odisha, Kerala, and Tamil Nadu, will also see expansion through access to the UK's marine import market.

While opening doors for many Indian agricultural products, the FTA also safeguards the interests of Indian farmers by ensuring that sensitive agricultural items like dairy products, edible oils, apples, and oats do not face import duties. This balance protects the domestic market while promoting export-oriented growth.

The India-UK trade deal is expected to boost bilateral trade by £25.5 billion. For India, approximately 99% of tariff lines for goods exported to Britain will have zero tariffs. The agreement also includes provisions to reduce levies on spirits, with whisky and gin duties decreasing over time. The FTA facilitates smoother customs processes, enhances mobility, and creates new opportunities in government procurement and digital trade. Overall, the India-UK FTA represents a significant step forward in strengthening economic ties between the two nations and unlocking new opportunities for growth and prosperity in the agricultural sector.