India’s agri export to US set to jump as 75% of export items now enjoy zero tariff: SBI Report
The report stated that India has a trade surplus of 1.3 billion dollars in agricultural trade with the USA. India’s USD 1.36 billion worth of agricultural commodity exports will be provided with zero additional US duty access, which will significantly help Indian farmers and exporters increase shipments, he said.
This reduction in taxes will increase the competitiveness of Indian products, expand market access, help farmers and exporters increase their volumes, thereby strengthening India’s agricultural trade surplus with the US.
“Agricultural products worth USD 1.035 billion have a zero-reciprocal tariff guarantee, which will significantly help Indian farmers and exporters to scale up,” the report said.
Also read: Will India’s trade surplus with Washington cross $90 billion in a year?
Some of the key agricultural products expected to benefit include rice, spices, oilseeds, tea and coffee. The US import share of Indian rice is almost 24 percent, which the report says will support Indian farmers. Tea, coffee and spices currently account for around 3 percent and the new tariff structure is expected to strengthen the plantation economy.
India’s fishing industry, which was previously badly hit by US tariffs, is also expected to benefit. The USA imports about 10 percent from India in this category. The lower tariff of 18 percent is expected to support the industry and improve export prospects. According to the data cited in the report, in the category of fish and aquatic invertebrates, US imports from the world were 18 billion 848 million dollars (18.84 billion), while 1 billion 817 million dollars (1.8 billion) of this came from India, with India having a share of 9.6 percent.
US rice imports from the world amounted to 1,378 million US dollars (1.3 billion), and 341 million US dollars came from India with a share of 24.7 percent.
In terms of coffee, tea, mate and spices, US imports from the world amounted to 14,026 million US dollars (14 billion) and from India, 396 million US dollars, corresponding to a share of 2.8 percent.
In edible fruits and nuts, US imports from the world were US$21,522 million (US$21 billion) and only US$39 million from India.
In edible vegetables and some roots, US imports amounted to 12 billion 402 million US dollars (12 billion US dollars) and 109 million US dollars from India.
While US imports from the world in ready-made vegetables, fruits and nuts amounted to 13 billion 774 million dollars ($13 billion), 192 million dollars of this came from India.
Overall, total US imports in selected categories were US$81,950 million (81 billion), while imports from India were US$2,894 million (2.8 billion), with India accounting for a 3.5 percent share.
