Steeping Success: India-EU FTA Brews New Opportunities for Indian Tea Exports

The India-European Union Free Trade Agreement (FTA) offers expanded export prospects for Indian tea, notably green tea. While duties are reduced or eliminated, hurdles persist with EU regulatory requirements. Despite challenges, the agreement promises enhanced EU market access and competitiveness for India's tea industry.

The freshly concluded India-European Union Free Trade Agreement (FTA) is set to open new avenues for the Indian tea industry, despite ongoing concerns over regulatory compliance and increasing costs, according to the Tea Association of India (TAI).

Officially named the India-EU Trade and Investment Agreement, the pact aims to strengthen bilateral trade by decreasing tariffs and addressing non-tariff barriers, thus enhancing India's market presence in the EU. TAI President Shailja Mehta highlighted the potential for expanded access, particularly for green tea varieties which may see duty eliminations.

India currently exports approximately 21 million kilograms of tea to EU nations, with focal hubs in Germany and Poland. While duties on black tea remain nil, the removal of duties on specific green tea segments is anticipated to further boost India's export capacity. However, challenges persist, including adherence to EU standards on residue limits, food safety, and traceability, Mehta warned. Ensuring compliance with evolving EU norms on sustainability and human rights due diligence remains a concern.

(With inputs from agencies.)