The deal was formalised during Prime Minister Narendra Modi’s visit to London—his fourth since taking office in 2014—and comes after three years of stop-start negotiations. The pact is expected to increase bilateral trade by 25.5 billion pounds ($34 billion) by 2040 and will come into effect following approvals from the British Parliament and India’s federal cabinet, likely within a year.
For India, the agreement opens the door to duty-free access for key agricultural products, including coffee, tea, and spices. These products are currently subject to tariffs upon entry into the UK, unlike similar exports from European countries. With the removal of duties, Indian exporters will now compete on equal footing with suppliers of instant and value-added coffee from Germany, Spain, and the Netherlands.
While the UK currently imports only 1.7% of India’s coffee, 5.6% of its tea, and 2.9% of its spices, the government expects these figures to rise significantly under the new regime. The UK’s total processed food imports stand at $50.68 billion, yet imports from India account for just $309.5 million. Globally, India exports $14.07 billion worth of processed foods, signalling untapped potential in the British market.
Exporters of oilseeds also stand to gain from zero-duty access, which could help expand consumer reach and boost market share.
In a major win for India’s traditional liquor and beverage industry, the agreement extends Geographical Indication (GI) protection to select products, including Goa’s feni, artisanal wines from Nashik, and Kerala’s toddy.
(Edited by : Ajay Vaishnav)
