India and the UK have finalized a significant trade deal, which reduces tariffs on essential food items like chocolates, biscuits, and salmon.
According to the agreement, lower tariffs will now apply to UK exports of lamb, salmon, chocolate, and biscuits heading to India.
Moreover, the UK has committed to “liberalise tariffs” on food shipments from India, including frozen prawns, as stated by the UK Department for Business and Trade.
The new deal introduces zero tariffs on UK exports of chocolates, biscuits, crispbreads, and crackers. Additionally, the agreement enhances access to food ingredients from India for UK manufacturers, according to the UK’s Food and Drink Federation (FDF).
In 2024, UK food and drink exports to India reached £293.8m ($392m), reflecting a 14.6% increase from the previous year, as reported by the FDF. The Scotch Whisky Association noted approximately £248m in Scotch whisky exports to India last year.
India now ranks among the top 20 destinations for UK food and drink exports, securing the 17th position in 2024. Ireland topped the list, with the UK exporting £4.2bn in food and drink across the Irish Sea.
“This is very welcome news for UK food and drink manufacturers, particularly for soft drinks, chocolates, biscuits, crispbreads, and crackers. These products will now benefit from tariff-free access to one of the fastest-growing markets in the world. The UK exported nearly £300m worth of food and drink to India in 2024, so this free trade agreement presents a significant opportunity for British food and soft drinks,” said FDF chief executive Karen Betts.
The agreement also reduces tariffs on UK whisky and gin exports to India from 150% to 75%, and subsequently to 40% by the tenth anniversary of this deal.
“By forging a new trade deal with the fastest-growing economy in the world, we are generating billions for the UK economy and elevating wages annually. This agreement unlocks growth throughout the country, from advanced manufacturing in the Northeast to whisky distilleries in Scotland,” stated UK Business and Trade Secretary Jonathan Reynolds.
India Prime Minister Narendra Modi described the “ambitious and mutually beneficial” trade agreement as a “historic milestone.”
