India Proposes Lower Import Tariffs on US Agricultural Products

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India Proposes Lower Import Tariffs on US Agricultural Products
29 Mar 2025
5 min read

News Synopsis

In a significant move aimed at strengthening trade relations with the United States, the Indian government has proposed reducing tariffs on select US farm products such as almonds, walnuts, cranberries, pistachios, and lentils.

According to a report, this initiative is part of ongoing trade negotiations designed to enhance market access and ease trade restrictions between the two nations.

The proposal was made during trade discussions in New Delhi with Brendan Lynch, the Assistant US Trade Representative for South and Central Asia. The talks, which are progressing positively, are expected to conclude by the end of the week, potentially paving the way for an important bilateral trade agreement.

Negotiations Progressing Towards a Trade Agreement

India’s Union Trade Minister, Piyush Goyal, stated on Thursday that trade discussions with the United States are "progressing well" and that both sides are committed to reaching a mutually beneficial agreement.

A senior government official highlighted that India is keen to secure a favorable deal and has structured its tariff reduction proposals in alignment with US demands, particularly in the agricultural sector. However, key items such as dairy products, rice, wheat, and maize remain contentious, with Indian officials hesitant to lower tariffs on these staple goods due to domestic policy considerations.

Changes in Tariffs and Market Access Expansion

India has taken incremental steps towards easing trade restrictions. In February 2024, the Indian government reduced import duties on bourbon whiskey from 150% to 100%, reflecting an openness to tariff adjustments.

Currently, India imposes import duties ranging between 30% and 100% on key US agricultural products, including almonds, cranberries, and walnuts, while tariffs on lentils stand at approximately 10%. In exchange for these concessions, India is advocating for increased access for its agricultural exports to the US market. Key Indian exports such as pomegranates, grapes, and rice are expected to benefit from these negotiations.

Trade Deal Expected by 2025

Negotiators from both nations are working to finalize the framework for the first phase of a broader bilateral trade deal, with the agreement anticipated to be signed by autumn 2025.

In 2024, the United States exported nearly $2 billion worth of agricultural and related products to India. This included $452 million in alcoholic beverages and approximately $1.3 billion in fruits and vegetables. Conversely, India’s agricultural exports to the US totaled around $5.5 billion, underscoring the significance of agricultural trade in the economic ties between the two countries.

Conclusion

India’s offer to lower tariffs on US farm products such as almonds, cranberries, and walnuts marks a significant step in strengthening trade relations between the two nations. By easing trade restrictions and enhancing market access, both countries are working towards a mutually beneficial agreement that could boost bilateral trade in the agricultural sector. While India remains cautious about reducing tariffs on essential staples like dairy, rice, wheat, and maize, the ongoing negotiations signal a positive shift towards greater economic cooperation.

With India’s agricultural exports to the US valued at $5.5 billion and American farm exports to India reaching nearly $2 billion in 2024, the finalization of a trade deal could further enhance trade volumes. If successful, this agreement could pave the way for broader economic engagements beyond agriculture. As discussions continue, the outcome of these negotiations will shape the future of India-US trade dynamics, fostering stronger economic ties between the two global partners.

TWN Special