India-US trade deal: India gets expanded market access for agri exports

India will be able to strengthen exports of farm products to America, building on the existing surplus in agriculture trade with the United States (US), government officials said on Tuesday.

 

During 2024, India’s agricultural exports to the US stood at $3.4 billion, excluding marine products, while imports were $2.1 billion.

 

As a part of the interim trade deal between India and the US, India has secured zero-duty access to a US import market of roughly $46 billion. The tariff-free product lines already account for about $1.4 billion of US imports from India and include spices, processed foods, fruits, tea, coffee, and essential oils.

 

India will also receive preferential access at 18 per cent reciprocal tariff for $160 billion import market, indicating substantial near-term export potential. In particular, the marine sector gains access at an 18 per cent tariff rate in a US import market segment valued at around $25 billion, offering significant opportunities for expansion, they said.

 

New Delhi’s agricultural trade with the US is seen as supporting its domestic priorities, instead of being disruptive. This is because India’s approach rests on three pillars -- big export gain for India’s key exports, forestry-linked products, futuristic and livelihood crops, they added.