US Tariff Rollback: A Mixed Blessing for India's Agricultural Exports

The US rollback of tariffs on specific agricultural products, including tea and spices, offers India a chance to boost exports. However, due to India's limited presence in certain sectors, broader benefits may favor other regions. Expanding export capabilities and infrastructure is crucial for maximizing gains.

The recent US announcement to roll back reciprocal tariffs on particular agricultural products is positioned to benefit India's export sector, according to the country's commerce ministry. Key items such as coffee, tea, and spices, among others, will no longer be subjected to the previous tariff regime as per the White House Executive Order issued on November 12.

The exempted products, which affect a range of imports like fruits, juices, and fertilizers, are crucial to India's annual international trade endeavors, amounting to over USD 1 billion. The Commerce Ministry emphasized that this development ensures fair competition for Indian exporters.

However, GTRI, a prominent think tank, noted that India's gains might be limited due to its negligible presence in certain major product lines, such as tomatoes and citrus fruits. To leverage this opportunity fully, India must scale up its production, enhance cold-chain capacity, and diversify its agricultural exports, suggested GTRI Founder Ajay Srivastava.

(With inputs from agencies.)