United Kingdom-India Trade Agreement Brings Significant Gain for Agriculture Sector; Increased Exports to Favor India: Minister Shivraj Singh on Agriculture
India-UK Comprehensive Economic and Trade Agreement (CETA) Boosts Indian Agriculture
The Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom is set to bring significant benefits to India's agriculture sector. The agreement offers over 95% of Indian farm goods zero-tariff access to the UK market, a move projected to increase agricultural exports by more than 50% within three years.
Under the CETA, Indian farmers will have the opportunity to sell value-added products such as fruits (grapes, onions, mixed vegetables), natural honey, processed foods, spices, tea, coffee, bakery items, and meats at premium prices comparable to major EU exporters. The deal also protects sensitive Indian agricultural products like dairy (milk, cheese, ghee), cereals (wheat, rice, maize, millets), apples, edible oils, oats, and certain fruits by excluding them from tariff concessions.
The agreement is considered a win for Indian farmers as it safeguards their domestic interests while opening new global opportunities through increased exports to the UK. Key agricultural items such as wheat, rice, maize, and coarse grains have not been included in the import relaxation list in the CETA agreement, ensuring the protection of domestic producers.
The UK has agreed to remove all import duties on major Indian agricultural exports, including fruits, vegetables, pulses, oilseeds, medicinal plants, flowers, and dairy products. This 0% import duty structure is expected to make Indian produce more affordable in the UK market, boosting demand and increasing export volumes.
India is a trade surplus country in agriculture with the UK, exporting around Rs 8,500 crore worth of agricultural products while importing only Rs 3,200 crore. The trade balance between the two countries is expected to grow further in India's favor with the new agreement.
Union Agriculture and Rural Development Minister Shivraj Singh Chouhan praised Prime Minister Narendra Modi for the CETA agreement, describing it as "historic and unprecedented." The agreement aligns with India's trade surplus status in agriculture with the UK.
India and the UK have endorsed the Vision 2035 roadmap to deepen strategic cooperation across various sectors, including agriculture. The CETA agreement is a step towards achieving this vision, aiming to ensure higher and more stable farmer incomes, rural prosperity, and sustainable long-term export growth.
The agreement also incorporates commitments to respect traditional knowledge in genetic resource patents and supports technology-driven innovation in agriculture, all aimed at enhancing productivity and quality. These provisions are expected to lead to an overall increase in rural prosperity through better market integration and income stability for farming communities.
In conclusion, the CETA agreement offers a significant opportunity for India's agriculture sector to expand its footprint in the UK market, providing farmers with a chance to earn premium prices and secure their livelihoods. The agreement's focus on protecting sensitive agricultural products and promoting technology-driven innovation makes it a promising step towards a sustainable and prosperous agricultural future for India.
[1] India-UK Comprehensive Economic Partnership Agreement (CEPA) [2] India-UK Trade Agreement: Boost for Indian Farmers [3] India-UK Free Trade Agreement: What It Means for Indian Farmers [4] India-UK Trade Deal: What's in It for Indian Farmers?
- With the India-UK Comprehensive Economic and Trade Agreement (CETA), Indian farmers can now sell value-added sports like fruits, natural honey, processed foods, spices, tea, coffee, bakery items, and meats at premium prices.
- The CETA agreement promises to increase rural prosperity for Indian farmers, as it removes import duties on several agricultural products and incorporates commitments to respect traditional knowledge in genetic resource patents, which can promote technology-driven innovation in sports like farming.
