Datanomics: India's agricultural trade with US remains marginal

Two-thirds of India's imports of tree nuts (such as almonds and pistachios) came from the US alone

India and the US have reached a framework for an interim trade agreement aimed at enhancing reciprocal trade and market access based on mutual interests. While agriculture broadly remained outside the framework, certain farm imports from the US would see zero or reduced tariffs, including specified fruits, nuts, wines and spirits, soybean oil, sorghum for animal fodder, and dried distillers’ grains.

 

Agri goods imports from US at just 5%

 

Just 5 per cent of India’s total imports comprise agricultural products. Of this, 6.53 per cent of India’s agricultural imports came from the US in FY26 (April–December), the highest share since FY21. Agricultural products accounted for 5 per cent of India’s total imports from the US during the first three quarters of FY26.

 

 

US a major exporter of nuts to India

 

Nearly two-thirds of India’s imports of tree nuts came from the United  States. US made for over 42 per cent of India’s fresh fruit imports in FY26 (Apr–Nov). However, its share in India’s imports of soybean oil and processed fruits and juices was significantly lower.

 

 

High tariffs on agricultural products  

India’s trade-weighted average tariff on agricultural products stood at 64.3 per cent in 2024. By comparison, tariffs on non-agricultural products were around seven times lower than those on agricultural goods.