India's Agricultural Exports to US Poised for Major Growth with New Tariff Advantage
India's agricultural and organic exports to the United States are expected to experience a substantial increase following the implementation of an interim trade agreement, according to APEDA Chairman Abhishek Dev. Speaking at the BIOFACH 2026 event, Dev highlighted that the 18% tariff secured under this deal provides Indian exporters with a significant competitive edge in the American market.
Competitive Advantage in Global Trade
Dev emphasized that this 18% tariff rate is notably lower than what the United States typically offers to other trading partners. This favorable tariff structure positions Indian agricultural products more competitively against exports from other countries, potentially leading to increased market share and revenue growth for Indian farmers and exporters.
Strong Foundation Despite Previous Challenges
The APEDA chairman pointed to India's impressive performance in the organic export sector as evidence of the trade relationship's resilience. Even with higher duty challenges last year, India managed to achieve a remarkable 30% increase in organic exports to the United States. This growth occurred despite temporary rate issues that could have discouraged trade.
Dev noted that American buyers demonstrated continued confidence in Indian agricultural products by maintaining their sourcing relationships throughout these challenges. This persistence has helped strengthen trade ties between the two nations and created a solid foundation for future expansion.
Optimistic Outlook for Future Exports
With the revised tariff structure now officially in place, Dev expressed strong confidence in the growth prospects for Indian agricultural exports to the American market. The combination of:
- A more favorable tariff rate compared to competitors
- Proven demand from US buyers
- India's established reputation for quality agricultural products
- The existing 30% growth in organic exports as a baseline
creates what Dev described as ideal conditions for accelerated export growth in the coming months and years. The interim trade agreement represents a strategic opportunity for Indian farmers and exporters to expand their presence in one of the world's largest agricultural markets.
This development comes at a crucial time for India's agricultural sector, which has been seeking new avenues for growth and international market access. The tariff advantage secured through this agreement could potentially benefit a wide range of agricultural products, from traditional crops to specialized organic offerings that have already demonstrated strong demand in the United States.
