Union Consumer Affairs Minister Pralhad Joshi on Wednesday, 15 July 2026, hailed the India-UK Comprehensive Economic and Trade Agreement (CETA) as a 'landmark step' that strengthens India's economic interests while keeping the agricultural sector shielded from import pressure. Joshi emphasised that sensitive farm commodities — including dairy, cereals, key fruits, vegetables and edible oils — remain protected under the deal.

Context

In his post, Joshi stated that the agreement 'strengthens India's economic interests while safeguarding our farmers and agricultural sector,' adding that 'sensitive agricultural products including dairy, cereals, key fruits, vegetables and edible oils remain protected, ensuring enhanced market opportunities without compromising the interests of Indian farmers.' He credited the deal to the vision of Prime Minister Narendra Modi, saying India continues to pursue trade agreements that 'promote growth, expand global opportunities and keep our national interests at the forefront.'

The India-UK CETA has been under negotiation since January 2022, when formal talks were launched following the United Kingdom's departure from the European Union. The UK is India's fifth-largest trading partner, and the negotiations have covered goods, services and investment across both economies.

Policy Backdrop

The India-UK deal follows a template India has used consistently since withdrawing from the Regional Comprehensive Economic Partnership (RCEP) in 2019. Under PM Modi, India has concluded calibrated bilateral agreements that open non-agricultural sectors while maintaining high tariffs or tariff-rate quotas on politically sensitive farm products.

The India-UAE Comprehensive Economic Partnership Agreement, signed in February 2022, excluded dairy and several agricultural items from tariff cuts. The India-Australia Economic Cooperation and Trade Agreement, which entered into force in December 2022, carried similar carve-outs for wheat, rice, dairy and edible oils. The India-UK CETA appears to extend this selective liberalisation approach to one of India's most significant post-Brexit trade relationships.

Joshi's portfolio — overseeing Consumer Affairs, Food and Public Distribution — places him at the intersection of farm-price policy and trade negotiations, making his endorsement of the deal's agricultural safeguards politically significant.

Stakeholders and Impact

Indian farmers, dairy cooperatives and edible oil processors have historically been the most vocal constituencies resisting broad agricultural liberalisation. By explicitly listing the protected categories, the government's messaging is directed at reassuring these groups that the deal does not replicate the concerns that drove India out of RCEP.

On the UK side, negotiators have sought greater market access in services and Scotch whisky, while India has pushed for openings in textiles and information technology services. The exclusion of core agricultural commodities from tariff cuts means Indian farm lobbies are unlikely to face the import competition that has been a flashpoint in previous trade discussions.

Dairy cooperatives — a powerful political constituency in states such as Gujarat, Maharashtra and Uttar Pradesh — had raised concerns during earlier rounds of the India-UK negotiations about potential exposure to cheaper British dairy imports. The minister's statement directly addresses those concerns.

What's Next

The agreement will need to go through parliamentary ratification processes in both countries. Trade analysts will watch for any side letters on sanitary and phytosanitary (SPS) standards, which can effectively function as non-tariff barriers even when headline tariffs are protected. Tariff-rate quotas on products such as cheese, skimmed milk powder and edible oils may also come under review in the medium term.

With the deal now publicly endorsed at the ministerial level, the India-UK CETA marks a significant expansion of India's post-RCEP bilateral trade architecture — and a test of whether selective liberalisation can deliver measurable export gains for Indian industry without triggering political backlash from the farm sector.