India's Agri Export to US Set to Jump as 75 Percent of Export Items
India's agricultural exports to the United States are expected to see a substantial increase, with 75 percent of these exports now subject to zero tariffs, as per a report from SBI.
The report stated that India enjoys a trade surplus of $1.3 billion in agricultural trade with the United States. It highlighted that India’s export of agricultural goods valued at $ 1.36 billion will receive no extra US duty access, which will greatly assist Indian farmers and exporters in increasing shipments.
This duty reduction will boost the competitiveness of Indian goods, widen market access, and assist farmers and exporters in increasing their volumes, thus reinforcing India's agricultural trade surplus with the US.
The report stated that "agricultural goods worth $1.035 billion have guaranteed zero reciprocal tariffs, which will greatly assist Indian farmers and exporters in expanding."
Several important agricultural products anticipated to gain advantages include rice, spices, oilseeds, tea, and coffee. The Indian rice share of US imports is nearly 24 percent, which the report indicated will benefit Indian farmers. Tea, coffee, and spices currently account for about 3 percent, and the revised tariff structure is anticipated to bolster the plantation economy.
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India's fishery industry, previously impacted by US tariffs, is also expected to gain. The US sources approximately 10 percent of this category from India. The reduced tariff of 18 percent is anticipated to bolster the sector and enhance export opportunities.
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Based on the information presented in the report, US imports of fish and aquatic invertebrates amounted to USD 18,848 million (18.84 billion), with USD 1,817 million (1.8 billion) sourced from India, which accounted for a 9.6 percent share.
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In rice, US imports globally totaled USD 1,378 million (1.3 billion), with USD 341 million coming from India, showcasing a 24.7 percent share.