India sees huge scope to expand processed food exports to UK after trade pact

India has significant room to expand processed food exports to the United Kingdom following the entry into force of the bilateral Comprehensive Economic and Trade Agreement (CETA), according to the Trade Promotion Council of India (TPCI).

Britain currently imports $50.68 billion worth of processed foods each year, but India supplies just $309.5 million of that total, or 0.6%. With CETA coming into effect on July 15, the elimination of steep British import duties now gives Indian food exporters immediate competitive parity in the market.

To capitalise on the trade pact, TPCI signed a strategic memorandum of understanding with the UK-India Business Council (UKIBC) and staged a dedicated India-UK Food and Beverage Trade Promotion Event in London on October 15. The initiative brought together 48 Indian food exporting firms and 150 British importers for business-to-business matchmaking.

Tariff cuts under the India-UK CETA

The agreement dismantled major tariff barriers across several key food categories where Indian exporters previously faced high duties:

"The food and beverage sector represents a significant growth corridor under the new trade framework," said TPCI Chairman Mohit Singla. He noted that the partnership with UKIBC marks a shift "from policy to partnership", designed to ensure post-deal momentum turns into commercial shipments.

Around 99% of Indian tariff lines now enter the UK entirely duty-free under CETA. TPCI expects this wide access will help Indian food brands reach mainstream supermarket shelves and food-service distributors across Britain, moving beyond the 1.86 million-strong Indian diaspora market.

Institutional outreach in London

The London trade promotion event was inaugurated by Rakesh Dahiya, First Secretary for Trade, Tourism and OCI at the High Commission of India, alongside Singla and UKIBC Director Stephen Crisp. Knowledge sessions led by DP World, State Bank of India UK, and Deloitte focused on supply chains, financial structures, and customs access under the new rules.

TPCI delegates also held discussions with the UK Department for Business, Innovation, Science and Trade, the London Chamber of Commerce and Industry, and the Scotch Whisky Association to explore wider bilateral opportunities.

Bilateral trade between India and the UK touched £48 billion (around $65 billion) in the 2025–26 financial year. With institutional frameworks now active, both export bodies aim to accelerate SME partnerships to capture a larger share of Britain's food imports.