India and the United Kingdom concluded a Free Trade Agreement (FTA) without offering any duty concessions on British dairy imports. The Indian government maintained its long-standing policy of protecting small and marginal farmers, excluding sensitive agricultural items such as milk and cheese from tariff relaxations.
India has concluded a Free Trade Agreement (FTA) with the United Kingdom, a move that strengthens bilateral trade ties but firmly upholds India’s agricultural protectionism. The Ministry of Commerce and Industry, Government of India, led the negotiations that began in January 2022. A key feature of the agreement is India’s decision to exclude any import duty concessions on British dairy products, including milk and cheese.
Officials confirmed that nearly 10% of the total tariff lines in the FTA were designated as “sensitive,” shielding them from any form of duty relaxation. Dairy products fall under this sensitive category due to their critical role in supporting the livelihoods of India’s small and marginal farmers. Import duties on milk and related dairy products remain at about 30%.
This stance echoes India’s approach in previous trade agreements, including the European Free Trade Association (EFTA) pact signed in March 2024, where dairy concessions were similarly withheld from countries like Switzerland and Norway.
The UK had hoped to secure improved access for its dairy products in the Indian market through tariff concessions. However, Indian negotiators remained resolute. The Ministry of Commerce emphasized that India will not compromise the interests of its rural economy for external trade advantages.
Industry leaders have welcomed this outcome, viewing it as a vital step to ensure the continued growth and security of India’s dairy sector, which supports millions of rural families.
