Majority of the agri products of India soon going to enter into the UK-duty free and will tap its $37.5bn market because of the India-UK CETA (Comprehensive Economic and Trade Agreement) thus benefitting Indian farmers but few sensitive sectors like dairy, apples and edible oil is not going to be a part of it.
Indian rice constitutes the major part of exports to UK worth $215.34 mn last fiscal whereas all the processed food products also constitutes a good share amounts $237.66 mn.
Talking about blue economy particularly of tuna, shrimp, fishmeal and aqua-feeds CETA has availed zero duty earlier they were in the range of 4.2-8.5 %. All these things jointly are going to help India achieving $100 bn target.
Duties of marine and animal products will come down from 20% to zero and most of the products which earlier had 70% duty will now have 0% duty.
Till now UK markets were being enjoyed by Germany, Netherland and other EU nations but with this FTA, Indian farmers will also gain access to UK markets. Apart from it share of India is 2.25% in UK’s marine import as of now but due to FTA it will also rise gradually in coming years.
States which are majorly going to receive benefits are Haryana and Punjab for basmati rice, Kerala for spices, North-East for horticulture Maharashtra for grapes and onion.
