India stands to gain modest advantages from the United States' decision to eliminate reciprocal tariffs on several key agricultural products, according to an announcement from the commerce ministry on Monday. The tariff exemptions, initially declared through a White House Executive Order on November 12, became effective the following day.
What Products Are Covered?
The policy reversal affects a broad spectrum of Indian exports including coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, beef and certain fertilisers. This move specifically cancels duties that were implemented under the reciprocal tariff regime established on April 2.
Indian officials have welcomed the development, noting it establishes fair competition for exporters in sectors where India ships over USD 1 billion worth of goods annually. These high-value categories include spices, tea, coffee, fruits, nuts, processed foods, essential oils and edible roots.
Level Playing Field for Indian Exporters
"Now our exports will have a level playing field," stated Darpan Jain, Joint Secretary in the Department of Commerce, during a media briefing. The removal of tariffs is expected to enhance India's competitive position in the American market for these specific product lines.
However, independent trade analysts caution that the actual benefits for India might be restrained. Ajay Srivastava, co-founder of Global Trade Research Initiative (GTRI), pointed out that India has minimal presence in several major exempted categories such as tomatoes, citrus fruits, melons, bananas and most fresh fruits and juices.
Limited Gains Without Infrastructure Upgrades
Srivastava indicated that India might experience marginal improvements in spice exports and niche horticulture products. Nevertheless, the primary beneficiaries of the US policy shift are likely to be exporters from Latin America, Africa and ASEAN nations unless India undertakes significant improvements.
The expert emphasized that for India to capitalize fully on such opportunities, the country needs to strengthen cold-chain infrastructure, scale up production capabilities and diversify its agricultural export basket. Without these fundamental enhancements, India's gains from the tariff removal are projected to remain modest compared to other global suppliers.
