Assam Tea Gets a Bright Boost with UK–India Free Trade Agreement

The India–UK Free Trade Agreement (FTA), signed on July 24, 2025, is a landmark pact designed to eliminate tariffs on approximately 99% of Indian exports to the UK market, including tea . This is great news for Assam tea, which gains duty free access to the UK, creating new opportunities and fairer competition.

What the UK–India FTA Means for Assam Tea

1. Zero Import Duties: Under the FTA, Indian tea especially Assam tea will enter the UK without any import tariffs, leveling the playing field alongside competitors.
2. Expanded Market Access: With UK markets now accessible duty free, Assam tea producers can more boldly pursue export growth, particularly in tea blends and specialty markets .
3. Competitive Pricing & Value: Removal of duties empowers exporters to price Assam teas more competitively, boosting sales volumes and margins in the UK retail space.
4. Support for Assam’s Agricultural Sector: Assam, a major tea-producing region, stands to benefit alongside other agrarian states under the FTA, though sensitive sectors like dairy remain protected.

How Assam Tea Fits into India–UK Trade

• 99% duty-free Indian exports: Assam tea enjoys zero import duties across UK markets.
• Trade growth goal: Targets bilateral expansion to $120 bn by 2030, with Assam producers gaining share.
• MSME & regional export focus: Assam’s tea estates and small growers now better positioned for export expansion India Briefing.

Why Assam Tea Stands to Gain the Most

1. Unique Flavor Appeal: Assam tea is world-renowned for its malty, full-bodied flavor and rich aroma, qualities that often appeal to UK consumers of black teas and breakfast blends.
2. Geographical Indication (GI) Status: Assam tea benefits from GI protection, reinforcing its distinct identity in foreign markets and unlocking premium opportunities under the FTA framework 
3. Promising Demand Growth: As UK consumers seek diverse, high quality tea origins, Assam producers can capitalize on interest in artisanal and certified teas.
4. Stronger Regional Profile: Assam is a major export hub. The FTA commits support for regional clusters in states like Assam for key export sectors.

Voices from Assam

Assam Chief Minister Himanta Biswa Sarma praised the deal as “a big win for Indian tea exporters” and a “landmark moment for Assam’s tea industry.” He emphasised the move helps Assam tea compete on equal terms with global producers .

Challenges to Watch

• Regulatory Compliance: UK/EU pesticide standards are strict. Assam exporters must meet these norms 
• Market Competition: Duty-free access levels the field but global tea brands still have strong local marketing presence.
• Value addition & Branding: To fully benefit, Assam producers may need to invest in branding, traceability, and packaging.

Strategic Moves for Assam Producers

• Invest in certification and traceability to ensure access to premium and compliant markets.
• Explore value-added blends and specialty formats appealing to UK consumer tastes.
• Build partnerships with UK buyers and distributors to seize retail shelf space and grow visibility.
• Highlight GI origin and sustainable practices in brand messaging

UK-India FTS Frequently Asked Questions (FAQs)

Q1: When was the UK–India FTA signed?
A: It was formally signed on 24 July 2025, after negotiations agreed in principle on 6 May.

Q2: Will Assam tea face any tariff under the new deal?
A: No. Assam tea, as part of Indian tea exports, now qualifies for zero duties in the UK 

Q3: Are any agricultural goods excluded from duty-free access?
A: Yes, sectors like dairy, edible oils, apples, and oats are excluded. But tea and most processed foods enjoy full access.

Q4: How significant is the trade growth potential?
A: Bilateral trade is expected to expand from ~$20B (2024) to $120B by 2030, giving tea exports substantial growth headroom.

Q5: How should Assam planters differentiate in UK markets?
A: Emphasise GI-certified origin, sustainable practices, traceability, and distinctive flavor profiles to attract discerning buyers.

Q6: What about compliance with pesticide and quality standards?
A: Exporters will need to meet UK/EU standards, which may require upgrades in processes, testing, and certification systems.

The India–UK Free Trade Agreement is a transformative milestone for Assam tea offering duty free access, market scale, and new export opportunities. With the right compliance strategies, branding investments, and export partnerships, Assam tea producers can fully leverage this historic deal to strengthen their position in the global tea market.