According to a report by State Bank of India (SBI), there is a possibility of a big jump in India’s agricultural exports to America. The report said that it is estimated that about 75 percent of Indian agricultural exports will now come under the zero tariff ambit.
Indian agricultural products will now get relief from additional US duty
According to the report, India has a trade surplus of $1.3 billion in agricultural trade with the US. Agricultural products worth $1.36 billion from India will now get relief from additional US duties, which will help farmers and exporters increase their exports.
Agricultural products worth more than one billion dollars will get relief from tariffs
The report said agricultural products worth $1.035 billion will get assured zero reciprocal tariffs. This will increase the competitiveness of Indian products, expand market access and increase export volumes. This is expected to further strengthen India’s agricultural trade surplus.
Rice accounts for 24.7% of Indian agricultural exports.
Major products to benefit include rice, spices, oilseeds, tea and coffee. In case of rice, America accounts for about 24.7 percent of Indian exports. America imported a total of $1.378 billion worth of rice from the world, out of which $341 million was imported from India.
The total import of America in the category of coffee, tea, mate and spices was 14.026 billion dollars, in which India’s share was 396 million dollars or 2.8 percent. The new tariff regime is likely to strengthen the plantation economy.
- fishing area It is also expected to provide relief to China, which was earlier hit by US tariffs.
- The US imported $18.84 billion from the world in the fish and aquatic invertebrates category, of which $1.817 billion was imported from India.
- India’s share in this category was 9.6 percent.
- A lower tariff of 18 percent could help the sector increase exports.
- Category of edible fruits and nuts America’s total import in 2017 was $21.52 billion, in which India’s share was $39 million.
- edible vegetables and roots India’s import stood at $12.40 billion, of which $109 million was imported from India.
- Range of prepared vegetables, fruits and nuts Total imports in India stood at $13.77 billion, of which India’s share was $192 million.
Total US imports in selected categories stood at $81.95 billion, while imports from India stood at $2.894 billion, making India’s share 3.5 percent. According to the report, better tariff access will create huge opportunities for Indian agricultural exports in the US market.
