US Tariff Reduction on Indian Goods to Spur Agri-Exports and Employment
The recent reduction in US tariffs on Indian goods is poised to significantly benefit the agricultural sector, with expectations of increased job creation in agro-processing industries and improved returns for farmers. This development was highlighted by S Rethinavelu, President of the Agri & All Trade Chamber, in a statement issued on Sunday.
Immediate Withdrawal of Penalty Tariff
The chamber expressed gratitude to the Prime Minister for the prompt withdrawal of a 25% penalty tariff previously imposed by the United States on Indian imports. In addition, the US has assured a reduction in reciprocal tariffs from 25% to 18%. Rethinavelu described this 18% tariff as highly competitive, noting that it represents a transformative boost for Indian exporters during a pivotal period in global trade dynamics.
Enhanced Competitiveness for Key Agricultural Products
Many high-value agricultural and processed food items from India are now duty-free in the US market. This change is expected to make Indian spices, including black pepper, turmeric, cumin, cardamom, cinnamon, chilli, and coriander, significantly more price-competitive. Furthermore, fresh mangoes, mango pulp, juice, dried mango slices, and frozen mango products will become more affordable and attractive to American consumers.
Significant Tariff Cuts for Nuts and Other Products
In a notable move, tariffs on cashews, Brazil nuts, chestnuts, and areca nuts have been slashed from 50% to 0%. This reduction is particularly advantageous for India, which holds the title of the world's largest exporter of processed cashews, with the US being one of its major importers. The elimination of these tariffs is anticipated to strengthen India's position in the global nut market.
Benefits for Farmers and Job Creation
Rethinavelu emphasized that these tariff adjustments will lead to higher farm gate prices for farmers, thereby improving their income levels. Additionally, the increased demand for Indian agricultural products in the US is expected to generate more employment opportunities in agro-processing sectors, contributing to economic growth and rural development.
The overall impact of these tariff reductions is seen as a positive step towards enhancing India's export capabilities, supporting agricultural communities, and fostering job creation in related industries.
