The proposed India-US Bilateral Trade Agreement will benefit Indian farmers, leveraging a $1.3B trade surplus. It provides zero-duty access to a $46B US market and preferential tariffs, boosting exports in agriculture, marine, and forestry sectors.
The proposed India-US Bilateral Trade Agreement (BTA) is expected to significantly benefit Indian farmers, with India’s export advantage and income potential across agriculture and allied sectors. India already enjoys a USD 1.3 billion surplus in agricultural trade with the United States. In 2024, India exported USD 3.4 billion worth of agricultural products to the US, while imports stood at USD 2.1 billion, highlighting India’s strong net export position in the farm sector. This surplus shows why India is well placed to gain further under the BTA framework.
Expanding Market Access and Tariff Benefits
A key gain comes from zero-duty access to a US agricultural import market worth nearly USD 46 billion. The tariff-free product lines already cover around USD 1.4 billion of US imports from India, including spices, tea, coffee, fruits, processed foods and essential oils. Zero tariffs on these products directly improve price realisation for Indian farmers by making their produce more competitive in the US market. In addition, India secures preferential access at an 18 per cent reciprocal tariff to a much larger USD 160 billion US import market. This creates strong near-term export potential for farm products where India already has scale and global competitiveness. Notably, the marine sector alone gets access to a USD 25 billion US import market at the reduced tariff rate, which is expected to support coastal livelihoods and boost export-linked incomes.
Three Pillars Driving Agricultural Growth
The agreement is designed around three clear pillars: big export gains for key farm products, promotion of forestry-linked items, and support for futuristic and livelihood crops, to improve farm incomes directly and sustainably.
Pillar 1: Big Gains in Key Farm Exports
Under the first pillar of big export gains, marine products from India already account for USD 2.45 billion of US imports, while the total US marine import market stands at USD 24.89 billion, indicating substantial room for expansion. Similarly, spices worth USD 358 million, rice worth USD 389 million, tea and coffee worth USD 82.5 million, and fruits worth USD 32.7 million are already being imported from India by the US, providing a strong base for future growth under lower tariffs.
Pillar 2: Promoting Forestry-Linked Products
Forestry-linked products form the second pillar, where items such as vegetable saps already see USD 285.5 million in US imports from India against a global US import market of USD 743.9 million. Zero-duty access for such products supports tribal and agroforestry incomes and promotes non-crop rural livelihoods.
Pillar 3: Focusing on Futuristic and Livelihood Crops
The third pillar focuses on futuristic and livelihood crops. Processed fruit products worth USD 34.9 million, coconut oil worth USD 7.9 million, and prepared coconut products worth USD 5.6 million already enter the US from India, while the total US import market for these products runs into hundreds of millions of dollars. This gap highlights India’s export growth potential and income opportunities for smallholders and women-led enterprises.
Taken together, these numbers explain why India will be a major gainer under the India-US BTA, with higher exports, better price realisation, and wider livelihood support for farmers across regions. (ANI)
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