India has huge scope to expand processed food exports to U.K. after trade pact: TPCI

The India-U.K. Comprehensive Economic and Trade Agreement changed the cost of selling many Indian goods in Britain. It removed tariffs on Indian exports representing almost 97.7% of trade value. That gives exporters better access and can make their products more competitive.

For food businesses, the change is especially important. U.K. tariffs of up to 70% on processed foods were eliminated. Tariffs of 4.2% to 8.5% on shrimp and duties on instant coffee were also removed. Indian producers therefore no longer face those added border charges on covered exports.

The change matters because India currently supplies only 0.6% of the U.K.'s $50.68 billion processed-food imports. TPCI says this leaves substantial room for growth. TPCI and UKIBC are now connecting exporters with British importers, sharing market intelligence, and supporting trade missions. Their October event brought 48 Indian companies together with 150 U.K.-based importers.

A Comprehensive Economic and Trade Agreement, or CETA, is a formal agreement between countries to make trade and investment easier. It can reduce or remove tariffs and establish rules for businesses operating across borders. Its purpose is to create more predictable access to each other's markets.

An ordinary trade deal is a broad term. It may cover only selected products or a limited set of tariff reductions. A comprehensive agreement generally has wider coverage, potentially including goods, services, investment, customs procedures, and business rules. The exact coverage depends on the agreement itself.

In this case, the article identifies the India-U.K. pact as a CETA designed to boost trade and investment ties. It specifically highlights tariff removal for processed foods, shrimp, and instant coffee. It also describes cooperation between TPCI and UKIBC to connect businesses, share market intelligence, arrange trade missions, and create opportunities for SMEs. The article does not list every CETA chapter.

The U.K.'s processed-food import market is worth $50.68 billion annually, according to TPCI. This includes food products bought from suppliers around the world. The figure shows the scale of the opportunity available to exporters that can meet British market needs.

India currently accounts for just 0.6% of that market. In value terms, Indian processed-food exports to the U.K. total $309.5 million. The article presents this small share against the much larger import total to show that Indian suppliers have significant room to expand.

The trade pact is intended to help close that gap by removing tariffs on many Indian exports. TPCI and UKIBC are also working to connect Indian companies with U.K. importers and share market intelligence. Their October 15 event in London brought together 48 Indian exporting companies and 150 U.K.-based importers, creating a direct channel for potential business.

The pact reduced or eliminated tariffs on several Indian food exports entering the U.K. The article specifically names processed foods, shrimp, and instant coffee. These products received improved access under the new trade framework.

The previous tariff burden varied by product. U.K. tariffs on processed foods reached as high as 70%. Shrimp faced tariffs ranging from 4.2% to 8.5%. The article says duties on instant coffee were also eliminated, but it does not give their earlier rates.

Removing these charges gives Indian producers what TPCI describes as immediate competitive parity. Exporters can enter the U.K. without the same tariff disadvantage on covered products. The potential is large because India currently supplies only 0.6% of the U.K.'s $50.68 billion annual processed-food imports. The pact therefore combines product-specific tariff relief with a broader effort to develop bilateral food trade.

Tariffs raise the cost of imported goods when they enter a market. Removing them can reduce the total cost attached to Indian processed foods, shrimp, and instant coffee. Exporters may use the savings to lower prices, protect margins, or invest in marketing and distribution.

The clearest example is processed food, where U.K. tariffs had reached 70%. Shrimp had faced tariffs of 4.2% to 8.5%, while duties on instant coffee were also removed. Without those charges, Indian products can compete on a more level basis with goods from suppliers that do not face the same tariff burden.

Lower costs do not guarantee higher sales. Companies still need suitable products, reliable supply, and buyers. However, the opportunity is substantial: India currently has only 0.6% of the U.K.'s $50.68 billion processed-food import market. TPCI and UKIBC are helping turn the tariff advantage into business by connecting exporters with 150 U.K.-based importers.

TPCI and the U.K.-India Business Council, or UKIBC, signed a strategic memorandum of understanding to strengthen food-processing trade. The framework is designed to turn the trade pact's tariff benefits into actual commercial activity. It focuses on practical links between businesses in both countries.

Their planned work includes connecting companies, facilitating trade missions, sharing market intelligence, and creating growth opportunities for small and medium-sized enterprises. These activities can help companies identify buyers, understand market conditions, and make contact with potential partners. The article presents this support as especially useful for SMEs.

The two organisations have already held an India-U.K. Trade Promotion Event on Food and Beverages in London. It brought 48 Indian exporting companies together with 150 U.K.-based importers on October 15. TPCI and UKIBC say they will remain engaged in bilateral trade development so that post-FTA momentum produces tangible outcomes. The article does not provide specific sales targets.

Tariffs are charges placed on imported goods. Countries may use them to protect domestic businesses from foreign competition, raise public revenue, or influence which products enter the market. They can also form part of wider trade policy. The article focuses on their effect on food-export costs rather than explaining every policy reason.

When tariffs fall, imported goods can become less expensive at the border. Exporters may then offer more competitive prices, while importers may find it more attractive to source from that country. In the India-U.K. case, processed-food tariffs had reached 70%, and shrimp tariffs ranged from 4.2% to 8.5%. Removing those charges reduces a major cost barrier.

Lower tariffs alone do not guarantee increased trade. Businesses still need buyers and must meet commercial requirements. The pact combines tariff removal with business-promotion efforts by TPCI and UKIBC. Their London event brought 48 Indian exporters together with 150 U.K. importers, helping create the relationships needed for trade to grow.