US exemption to benefit $1 billion of India’s farm exports, says commerce ministry

Indian exports to the US fell nearly 9 percent in October to $6.31 billion from $6.91 billion a year ago, while it increased from $5.47 billion in September

India’s agricultural exports worth around $1 billion will be exempt from reciprocal tariffs following a move by the United States to remove steeper duties on certain products like coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, among other products.

“India’s agricultural exports to US stood at $2.5 billion in FY25, of which around $1bn is exempted now,” Director General, Directorate General of Foreign Trade (DGFT) Ajay Bhadoo said on November 17.

The exemptions were issued through a White House Executive Order on November 12 and took effect the following day. These goods are either not produced in sufficient quantities within the United States or rely on climate conditions that the country cannot replicate.

The Commerce Ministry said that spices (excluding thyme) valued at $358.66 million, 50 processed food items worth $491.31 million, and tea and coffee worth $82.54 million will be exempt from the 50 percent reciprocal tariffs levied on Indian goods by the United States.

These figures are as per FY25 levels.

Other goods set to benefit include 48 products under fruits and nuts worth $54.58 million, certain essential oils, 26 items under vegetables and edible roots, as well as some beef and bovine products.

“While this applies to all trading partners, it creates a level playing field for Indian exporters,” the commerce ministry said.

Indian exports to the US fell nearly 9 percent in October to $6.31 billion from $6.91 billion a year ago, while it increased from $5.47 billion in September, data released by the Commerce Ministry on November 17 showed.

According to the government’s estimate, Indian exports worth roughly $48.2 billion are facing elevated US tariffs.

India exported goods worth $86.51 billion to the US in FY25, out of which the top five categories account for almost $60 billion of outbound shipments to American shores.