Assam Chief Minister Himanta Biswa Sarma on Thursday, 16 July 2026, welcomed the entry into force of the India-UK Comprehensive Economic and Trade Agreement (CETA), calling it a defining moment for Assam and crediting the accord to the leadership of Prime Minister Narendra Modi. The agreement grants duty-free access to 99% of India's exports to the United Kingdom, with Assam Tea set to enter the UK market completely tariff-free for the first time.

Context

In his post, CM Sarma stated that the deal marks a milestone for the state's most iconic export: 'Our tea, the pride of Assam and among the finest in the world, will now enter the UK market completely duty-free for the very first time.' He described it as a 'major boost' for the lakhs of tea garden workers and growers across Assam. The Chief Minister also highlighted that India-UK bilateral trade is projected to nearly double to $120 billion by 2030.

The India-UK free trade negotiations were formally launched in January 2022 following the United Kingdom's departure from the European Union. The current administration has pursued a series of bilateral trade pacts in parallel, including deals with Australia and the United Arab Emirates, to widen market access for Indian producers beyond traditional blocs.

Policy Backdrop

Assam Tea carries a Geographical Indication (GI) tag, conferring it protected status as a product uniquely tied to the region. Previously, Indian tea faced UK import tariffs that placed it at a competitive disadvantage against producers from other origins that had preferential access. Duty-free entry under the CETA is expected to improve price realisation for growers and strengthen demand for the GI-tagged product in one of the world's most established tea-consuming markets.

India's broader trade liberalisation push under PM Modi has prioritised deals with major economies to secure preferential access for agricultural and manufactured exports. The India-Australia Economic Cooperation and Trade Agreement entered into force in December 2022, and the India-UAE Comprehensive Economic Partnership Agreement took effect in May 2022, establishing a pattern of high-value bilateral accords.

Stakeholders and Impact

Tea garden workers represent one of the largest organised labour groups in Assam, and the sector underpins livelihoods across the Brahmaputra Valley and Barak Valley districts. CM Sarma noted that beyond tea, the state's expanding agro-processing and MSME sectors are also positioned to benefit from the agreement's broader tariff concessions.

For small and medium exporters, preferential access to the UK market reduces the cost burden of entry and opens competitive space against third-country rivals. The CETA's coverage of 99% of Indian exports means that a wide range of goods — from processed foods to textiles — stand to gain, with regionally concentrated products like Assam Tea among the most immediate beneficiaries.

What's Next

Attention will now turn to the operational details of the agreement: rules-of-origin requirements and customs procedures that will determine how smoothly Assam Tea and other exports move through UK ports under the new tariff regime. State and central government agencies are expected to issue guidance for exporters on compliance and certification processes.

Longer term, the projected doubling of India-UK bilateral trade to $120 billion by 2030 will depend on take-up by exporters, sustained demand conditions in the UK, and the pace of implementation on both sides. Parliamentary and state-level reviews of the agreement's employment and price impact are anticipated within the coming years, providing early indicators of whether the deal's promise translates into measurable gains for Assam's tea economy.