India set to tap $206 billion US agri market via zero duty, lower reciprocal tariffs

US President Donald Trump with Prime Minister Narendra Modi

India will gain from zero-duty access to the American agricultural import market valued at $46 billion, covering key products such as spices, processed foods, fruits, tea, coffee, and essential oils, while other goods, including marine products, will enter a larger $160 billion market at a reduced 18 percent tariff, the commerce ministry said.

In 2024, India exported agricultural products worth $3.4 billion to the United States, while imports stood at $2.1 billion, giving the South Asian nation a trade surplus of $1.3 billion in this sector.

The zero-duty concessions will take effect once the interim trade agreement between India and the US is signed around March, while the 18 percent reduced tariff will come into effect when the US issues an executive order, expected this week.

Major beneficiaries of zero-duty access include spices and spice products, which presently account for 18 percent of total US imports valued at $2.01 billion.

Tea and coffee represent less than 1 percent of US imports of $9.38 billion, while fruits, including mangoes and bananas, make up just 0.3 percent of total purchases by America in this category.

Processed fruit products account for approximately 4.6 percent of US imports of $759 million.

Forestry-linked products, such as vegetable plaiting materials, vegetable waxes, bamboo shoots, nuts, and beeswax, represent between 0.2 and 38 percent of US imports in these categories.

Under the 18 percent reciprocal tariff, India’s marine sector, including shrimp are seen gaining in a US import market valued at $25 billion. Other sectors benefiting include basmati and specialty rice, oilseeds like sesame, and certain fruits.