New Delhi: India's export to the United States on agricultural commodities is set to witness a significant jump as 75 per cent of such exports will now be at zero tariff, according to a report by SBI.
The report said that India has a trade surplus of USD 1.3 billion in agricultural trade with the US. It noted that India's export of USD 1.36 billion worth of agricultural commodities will receive zero additional US duty access, which will significantly help Indian farmers and exporters scale up shipments.
This reduction in duty will enhance competitiveness of Indian products, expand market access, and help farmers and exporters increase volumes, thereby strengthening India's agricultural trade surplus with the US.
The report said "agricultural products valued at USD 1.035 bn have assured zero reciprocal tariff, which will significantly help Indian farmers and exporters to scale up"
Some of the key agricultural items expected to benefit include rice, spices, oilseeds, tea and coffee. The US import share of Indian rice is almost 24 per cent, which the report said will support Indian farmers. Tea, coffee and spices currently have a share of around 3 per cent, and the new tariff structure is expected to strengthen the plantation economy.
India's fishery sector, which was badly affected by US tariffs earlier, is also likely to benefit. The US imports around 10 per cent from India in this category. The lower tariff of 18 per cent is expected to support the sector and improve export prospects.
According to the data cited in the report, under the category of fish and aquatic invertebrates, US imports from the world stood at USD 18,848 million (18.84 billion), of which USD 1,817 million (1.8 billion) came from India, giving India a 9.6 per cent share.
In rice, US imports from the world were USD 1,378 million (1.3 billion), and USD 341 million were from India, reflecting a 24.7 per cent share.
In coffee, tea, mate and spices, US imports from the world stood at USD 14,026 million (14 billion), while imports from India were USD 396 million, translating into a 2.8 per cent share.
In edible fruit and nuts, US imports from the world were USD 21,522 million (21 billion), with only USD 39 million from India.
In edible vegetables and certain roots, US imports stood at USD 12,402 million (12 billion), with USD 109 million from India.
In prepared vegetables, fruit and nuts, US imports from the world were USD 13,774 million (13 billion), of which USD 192 million came from India.
Overall, total US imports in the selected categories stood at USD 81,950 million (81 billion), while imports from India were USD 2,894 million (2.8 billion), giving India a 3.5 per cent share.
Source Name : Economic Times