India is set to strengthen its agricultural exports to the United States following an interim trade agreement between the two nations. Government officials confirmed that the deal opens significant new opportunities for Indian farm products in the American market.
In 2024, India exported agricultural goods worth $3.4 billion to the US, excluding marine products. During the same period, imports stood at $2.1 billion, maintaining India’s trade surplus in agriculture.
Zero-Duty Access to $46 Billion Market
Under the agreement, India has secured zero-duty access to a US import market valued at approximately $46 billion. These tariff-free product categories already account for nearly $1.4 billion of US imports from India.
The eligible products include:
- Spices
- Processed foods
- Fruits
- Tea and coffee
- Essential oils
As a result, exporters can now compete more effectively in these segments.
Preferential Access at 18% Tariff
In addition to zero-duty lines, India will receive preferential access at an 18% reciprocal tariff across a US import market valued at $160 billion. This development creates strong near-term export potential.
The marine sector stands to benefit significantly. It gains access to a US import segment worth around $25 billion at the 18% tariff rate. Officials believe this could accelerate export growth in seafood shipments.
Strategic Boost for Agriculture
Government sources stated that India’s agricultural engagement with the US aligns with domestic priorities. The policy focuses on:
- Expanding exports of key farm products
- Promoting forestry-linked goods
- Supporting livelihood-oriented and future-ready crops
Importantly, officials emphasized that the agreement supports domestic agriculture rather than disrupting it.
What It Means for Rice and Food Exports?
Although rice was not specifically highlighted in the announcement, broader agricultural access may positively influence export rice from India, especially if policy stability continues.
Export trends also affect Indian rice prices, particularly when global demand strengthens. With the US offering improved access, Indian exporters may explore premium segments.
India remains one of the top 10 rice exporters in India, supplying multiple global markets. Any improvement in trade terms with developed economies strengthens its global position.