New Delhi: India's processed food exports to the UK have significant room for growth, as the country accounts for just 0.6 per cent of Britain's USD 50.68 billion annual imports, with the India-UK trade pact removing tariffs on processed foods, shrimp and instant coffee, industry body TPCI said on Thursday.
India and the UK on July 15 implemented a Comprehensive Economic and Trade Agreement (CETA) to boost trade and investment ties.
To boost trade in the food processing sector, the Trade Promotion Council of India (TPCI) has inked a pact with the UK-India Business Council (UKIBC).
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The strategic MoU establishes a dedicated framework for institutional business collaboration, it said, adding that the partnership focuses on connecting businesses, facilitating trade missions, sharing market intelligence, and creating growth opportunities for Small and Medium Enterprises (SMEs) in both countries.
"The food and beverage sector represents a significant growth corridor under the new trade framework. The UK currently imports USD 50.68 billion worth of processed food annually, with India's share standing at 0.6 per cent (USD 309.5 million), presenting significant room for expansion," TPCI Chairman Mohit Singla said.
Under CETA, UK tariffs of up to 70 per cent on processed foods, 4.2-8.5 per cent on shrimp, and duties on instant coffee have also been eliminated, providing immediate competitive parity for Indian producers, he added.
"Following the entry into force of the India-UK CETA, both TPCI and UKIBC will be deeply engaged in bilateral trade development, ensuring that the post-FTA momentum translates into tangible outcomes," he said.
Both the organisations held the India-UK Trade Promotion Event on Food and Beverages in London on 15 October, bringing together 48 Indian exporting companies and 150 UK-based importers.