India and the UK have signed a long-awaited trade deal, reducing tariffs on foods including chocolates, biscuits and salmon.
Under the terms of the agreement, UK exports of lamb, salmon, chocolate and biscuits to India will face lower tariffs.
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Meanwhile, the UK will “liberalise tariffs” on shipments from India of “food products including frozen prawns”, the UK Department for Business and Trade said.
Just Food has asked the department for further details on the changes planned.
There will be zero tariffs for UK exports of chocolates, biscuits, crispbreads and crackers, which were previously taxed at 30%, and the deal also makes food ingredients from India more accessible to UK manufacturers, according to the UK’s Food and Drink Federation (FDF).
In 2024, £293.8m ($392m) of food and drink was exported from the UK to India, an increase of 14.6% on the previous year, the FDF said. According to the Scotch Whisky Association, some £248m of Scotch whisky exports were sent to India last year.
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By GlobalDataIndia featured among the top 20 destinations for UK food and drink products, ranking 17th last year, FDF data shows. Ireland led the list, with the UK selling £4.2bn of food and drinks across the Irish Sea in 2024.
“This is very welcome news for UK food and drink manufacturers, particularly for soft drinks, chocolates, biscuits, crispbreads and crackers, which will now all 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 represents a significant opportunity for British food and soft drinks,” FDF chief executive Karen Betts said.
The deal also sees tariffs on UK whisky and gin to India cut from 150% to 75%, and then to 40% by the tenth anniversary of the deal.
“By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and wages every year and unlocking growth in every corner of the country, from advanced manufacturing in the Northeast to whisky distilleries in Scotland,” said UK Business and Trade Secretary Jonathan Reynolds.
India Prime Minister Narendra Modi called the “ambitious and mutually beneficial” trade agreement a “historic milestone.”
