From spices to seafood, India-US trade deal will expand export runway for Indian agriculture

India’s latest trade push with the United States is being framed less as a numbers game and more as a direct play for farmers’ incomes, diversification and long-term resilience. At its core is a simple pitch: use global markets to expand opportunities at home, without unsettling domestic priorities.

The backdrop is already favourable.

India runs a $1.3 billion surplus in agricultural trade with the US. In 2024,
agricultural exports to the American market touched $3.4 billion, compared with $2.1 billion in imports, underlining India’s net export strength even before marine products are fully factored in. The new framework builds on that base by opening doors wider, and cheaper.

In a detailed statement on the agriculture chapter of the agreement, the government said the extended transition period covers inputs used by India’s food processing industry that are sourced from multiple countries.

A major win is zero-duty access to a US import market worth about $46 billion. Products already shipped from India under these tariff lines account for roughly $1.4 billion, spanning spices, processed foods, fruits, tea, coffee and essential oils. Beyond that, India has also secured preferential access at an 18% reciprocal tariff for a massive $160 billion US import market, creating substantial near-term export potential.

Big export gains for farmers

The first pillar focuses on sectors where India already has scale, competitiveness and premium pricing in the US. Marine products stand out, gaining access at an 18% tariff rate in a $25 billion US market. With strong demand and price realisation, this could significantly impact coastal livelihoods and reinforce India’s global seafood leadership.

Other beneficiaries include basmati and specialty rice, which taps into high-value niche markets; spices and spice products, closely linked to SMEs and farmer producer organisations; sesame seeds, supporting oilseed diversification; tea and coffee in specialty segments; and fruits such as mangoes and bananas, which promise higher horticulture returns. These sectors offer relatively direct transmission of export gains to farm incomes.

Also read |
US-India interim trade deal: Don’t let ‘perfect’ become the enemy of good

Forestry-linked livelihoods

The second pillar covers forestry-linked products, all under zero reciprocal tariffs. Items such as vegetable plaiting materials, vegetable waxes, saps, beeswax, bamboo shoots and nuts connect trade to rural, tribal and agroforestry livelihoods. These exports align with domestic initiatives like the National Bamboo Mission, Van Dhan Yojana, agroforestry policies and beekeeping missions, helping diversify non-crop rural incomes.

Futuristic and livelihood crops

The third pillar looks ahead, focusing on smallholder-friendly, women-led and future diversification crops. Zero-duty access applies to a wide range of fresh fruits, processed fruit products, coconut and copra oil, value-added coconut items, nuts, select oilseeds and niche vegetables and roots. These segments tie into programmes such as MIDH, PMKSY, ODOP, edible oil missions and tribal agriculture schemes.