Report

India has firmly decided not to offer any import duty concessions to the UK on sensitive agricultural items, including dairy products, apples, and cheese, as part of the newly concluded free trade agreement (FTA). According to an official statement, about 10% of the tariff lines fall under this sensitive items category.

Protecting Indian Farmers’ Interests

The decision aims to safeguard the interests of Indian farmers. The official explained that agricultural goods like dairy, apples, and cheese will not benefit from any duty reductions, ensuring that India continues to protect its farmers from foreign competition. India has consistently maintained this stance in all trade agreements, given the direct impact these items have on the livelihoods of small-scale farmers.

No Duty Cuts for Dairy Products, Even in Past Agreements

India has previously upheld this policy of not offering duty reductions on dairy products, even in agreements with countries like Switzerland and Norway, under the European Free Trade Association (EFTA) pact signed last year. Despite Britain’s interest in securing duty cuts on these products due to the large Indian market, India has maintained a 30% import duty on milk and dairy products.

The recent free trade agreement between India and the UK concluded after negotiations that began in January 2022, reinforcing India’s commitment to protecting its agricultural sector.

Source: The Economic Times