US Tariff Exemptions Create New Opportunities for India's Agricultural Export Sector

India stands to benefit from the United States' recent decision to remove reciprocal tariffs on various agricultural products, with annual exports of these goods exceeding USD 1 billion.

New Delhi:

According to the commerce ministry's Monday announcement, India is anticipated to benefit from the US rollback of reciprocal tariffs on specific agricultural products including tea, coffee, and spices.

On November 13, exemptions took effect following a White House Executive Order issued on November 12, which excludes coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, beef, and certain fertilizers from the April 2 reciprocal tariff regime.

The Commerce Ministry emphasized that while these exemptions apply to all trading partners, they establish a level playing field for Indian exporters.

India's annual exports of these products exceed USD 1 billion, encompassing fruits and nuts, processed foods, spices, tea and coffee, essential oils, and vegetable and edible roots.

Joint Secretary in the Department of Commerce, Darpan Jain, stated during a press briefing, "Now our exports will have a level playing field."

However, think tank GTRI suggests India's gains from the US move will be modest.

GTRI Founder Ajay Srivastava noted, "India has almost no presence in several of the largest exempted lines - tomatoes, citrus fruits, melons, bananas, most fresh fruits, and fruit juices."

He further explained that the US tariff policy shift might slightly improve India's competitive position in spices and niche horticulture sectors, but the primary beneficiaries will be major agricultural exporters from Latin America, Africa, and ASEAN countries unless India expands its scale, develops cold-chain capacity, and diversifies its agricultural export portfolio.