India-UK FTA to Boost Pharma, Engineering, Chemicals With Zero-Duty Export Push

The India-UK Free Trade Agreement (FTA) is set to unlock major export opportunities for several key Indian sectors, offering zero-duty market access and a level playing field in the UK's large and diverse import market.

- TBG NETWORK

The food processing sector, which includes processed agricultural and food products, holds a 10.1 percent share under the FTA coverage with 985 tariff lines. This sector plays a key value-added role in the agri-food supply chain. India currently exports USD 14.07 billion worth of food processing products globally, while the UK imports USD 50.68 billion. However, Indian exports to the UK are only USD 309.5 million, showing strong room for growth under the FTA.

India's plantation sector is also expected to benefit greatly. The UK already buys 1.7 percent of India's coffee, 5.6 percent of tea, and 2.9 percent of spice exports. With duty-free access now available, these numbers are likely to grow quickly.

In particular, duty-free access on instant coffee will help Indian exporters compete better with European suppliers like Germany, Spain, and the Netherlands.