FTA with UK a game-changer: Assam tea to enter British market duty-free, says Himanta

Assam Chief Minister Himanta Biswa Sarma on Thursday hailed the signing of the historic Free Trade Agreement (FTA) between India and the United Kingdom as a landmark moment for the country’s tea industry, particularly for Assam. 

Taking to social media platform X, the Chief Minister described the development as a "big win for Indian tea exporters" and a “big day for Assam’s tea industry.”

Under the newly signed FTA, Indian tea will now enjoy zero-duty access to the UK market. 

This move, the Chief Minister emphasised, places Indian tea on an equal footing with global competitors who earlier benefited from tariff advantages. "This duty-free access sets a level playing field, letting Indian tea compete fairly with global suppliers who held tariff advantages prior to the signing of the FTA," Sarma wrote.

The UK currently accounts for approximately 5.6% of India’s total tea exports. With the removal of duties, that figure is expected to rise significantly, offering a fresh lifeline to the tea growers and exporters of Assam, who have long sought better international market access.

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Apart from tea, the FTA also includes duty-free entry for other Indian agricultural commodities such as instant coffee and spices. Chief Minister Sarma underscored that this agreement not only benefits Assam but also serves as a broader push to elevate India's agricultural exports. The move aligns with the central government’s target of reaching $100 billion in agri-exports by 2030.

“This FTA deal strengthens Indian competitiveness in global agriculture trade and unlocks massive growth potential for one of its most iconic products—tea,” the Chief Minister concluded, noting that the strategic significance of this deal goes far beyond economics, enhancing India’s global standing in agri-trade.

Industry stakeholders in Assam have also welcomed the announcement, terming it a potential turning point for the state’s struggling tea sector, which has been grappling with rising production costs and fluctuating global demand.