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Signing of CETA heralds trade boost for processed foods, niche products
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Tuesday, 29 July, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The UK India Comprehensive Economic and Trade Agreement (CETA) is a reality now, after the two countries officially signed the agreement in the UK. CETA is aimed at elimination of tariffs on both countries' exports with bilateral trade reaching USD56 billion, and a target to double this by 2030.
According to the Government of India's official statement, processed foods, vegetable oil, can expect a growth of 70%, particularly, the marine food sector 20% growth with 0 percent duty.
For agriculture and allied goods, the agreement provides Zero Duty Market Access.
The statement by GoI added that the agriculture sector accounts for 1,437 tariff lines, which constitutes 14.8% of all product tariff lines. This indicates a significant presence of agriculture in the trade structure, reflecting the diversity and importance of agri-based goods in tariff regulation. Food processing accounts for 985 tariff lines, the sector holding a 10.1% share.
Agricultural exports from India were valued at USD45.05 billion in 2022-23, a rise from USD41.3 billion in 2020-21 (APEDA).
In agriculture, India exports USD36.63 billion globally, while the UK imports USD37.52 billion, but imports just USD811 million from India, revealing room for growth in high-value agri products. The UK is a high-value market for niche Indian agri-products such as tea, mangoes, grapes, spices and marine products.
Further, for the marine sector, the agreement removes import tariffs on a wide range of seafood products, enhancing Indian exporters' competitiveness in the UK market.
“This is expected to particularly benefit exports of shrimp, frozen fish, and value-added marine products,” the statement reads.
India’s key seafood exports to the UK currently include Vannamei shrimp (Litopenaeus vannamei), frozen squid, lobsters, frozen pomfret, and black tiger shrimp—all of which are expected to gain further market share under CETA’s duty-free access.
Under CETA, all fish and fisheries commodities falling under the UK tariff schedule categories marked ‘A’ now enjoy 100% duty-free access from the date of entry into force of the agreement.
HS Code 03: Fish, crustaceans, molluscs, and other aquatic invertebrates (e.g., shrimp, tuna, mackerel, sardines, squid, crab, cuttlefish, frozen pomfret, lobsters)
HS Code 05: Coral, cowries, Artemia, etc.
HS Code 15: Fish oils and marine fats
HS Code 1603/1604/1605: Prepared or preserved seafood, caviar, extracts, and juices
HS Code 23: Fish meal, fish & shrimp feed, and residues used in animal fodder
HS Code 95: Fishing gear (rods, hooks, reels, etc.)
India’s total seafood exports in 2024–25 reached $7.38 billion (?60,523 crore), amounting to 1.78 million metric tonnes. Frozen shrimp remained the top export, accounting for 66% of earnings with $4.88 billion. Marine exports to the UK specifically were valued at $104 million (? 879 crore), with frozen shrimp alone contributing $80 million (77%). However, India’s share in the UK’s $5.4 billion seafood import market is just 2.25%. With CETA now in force, industry estimates project a 70% surge in marine exports to the UK in the coming years.
Meanwhile, according to the Forum of Indian Food Importers (FIFI) other products, including lamb, confectionery items, chocolate & chocolate products, mineral water, non-alcoholic beverages, beer, gin and scotch whiskey, will get benefits of reduced tariffs.
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