India and the United Kingdom have finalized a Free Trade Agreement (FTA) after negotiations that began in January 2022. A significant aspect of this agreement is India’s decision to exclude import duty concessions on sensitive agricultural products, notably dairy items such as milk, cheese, and apples.
This move aligns with India’s consistent policy to protect the livelihoods of its small and marginal farmers. An official stated that approximately 10% of tariff lines are categorized as sensitive items, which are exempt from duty concessions.
India maintains an import duty of about 30% on milk and milk products. This protective measure is not new; similar stances were observed in India’s agreements with other nations, including the European Free Trade Association (EFTA) pact signed in March 2024, where no duty concessions were granted on dairy products to countries like Switzerland and Norway.
The UK’s interest in securing duty concessions for its dairy products was met with India’s firm position to safeguard its domestic agricultural sector. This approach underscores India’s commitment to ensuring that trade agreements do not adversely affect its rural economy.
Industry Insight:
India’s steadfast approach in excluding dairy products from duty concessions in FTAs reflects its prioritization of domestic agricultural welfare over international trade pressures. This decision reinforces the protective measures for India’s dairy sector, ensuring stability for local farmers amidst global trade negotiations.
Source : Dairynews7x7 May 8th 2025 The Economic Times