India’s Agri Exports to US Set to Rise as 75% Items Get Zero Tariff: SBI Report

• 75% of Indian agri exports to the US now face zero tariff
• Agricultural products worth $1.035 billion assured zero reciprocal tariff
• Strengthens India’s existing $1.3 billion agricultural trade surplus
• Enhances competitiveness and export volumes

Major Beneficiary Sectors

1. Rice

• US global rice imports: $1.378 billion
• Imports from India: $341 million
• India’s share: 24.7%

The US already sources nearly one-fourth of its rice imports from India, making tariff benefits highly significant for Indian farmers.

2. Fishery Sector

• US global imports (fish & aquatic invertebrates): $18.84 billion
• Imports from India: $1.8 billion
• India’s share: 9.6%

The fishery sector, earlier affected by higher tariffs, is expected to gain from the reduced tariff structure (around 18%), improving export prospects.

3. Tea, Coffee & Spices

• US global imports: $14.02 billion
• Imports from India: $396 million
• India’s share: 2.8%

The new tariff framework is expected to support India’s plantation economy and boost exports in this segment.

Overall Trade Position

Across selected agricultural categories:

• Total US imports: $81.95 billion
• Imports from India: $2.89 billion
• India’s overall share: 3.5%

The improved tariff structure is likely to:

• Expand market access
• Increase export volumes
• Improve price realization
• Strengthen India’s agri trade surplus

Significance

The tariff reduction comes at a time when global agricultural trade is witnessing supply chain shifts and competitive realignments. Enhanced access to the US market is expected to support Indian farmers, fisheries, and plantation sectors, contributing to rural income growth and export diversification.

Exam-Oriented MCQs

Q1. According to the SBI report, what percentage of India’s agricultural exports to the US will now enjoy zero tariff access?
(a) 50%
(b) 60%
(c) 70%
(d) 75%
(e) 80%

Q2. India currently maintains an agricultural trade surplus of approximately how much with the US?
(a) $0.8 billion
(b) $1.0 billion
(c) $1.3 billion
(d) $2.0 billion
(e) $2.5 billion

Q3. India’s share in US rice imports is approximately:
(a) 15%
(b) 18%
(c) 20%
(d) 24%
(e) 30%

Q4. Under the category of fish and aquatic invertebrates, India accounts for what percentage of US imports?
(a) 5.2%
(b) 7.8%
(c) 9.6%
(d) 12.4%
(e) 15.0%

Q5. The report highlighting the rise in India’s agri exports to the US was released by:
(a) Reserve Bank of India
(b) NITI Aayog
(c) State Bank of India
(d) Ministry of Commerce and Industry
(e) EXIM Bank

Q6. The improved tariff access is expected to primarily benefit which of the following sectors?
(a) Rice
(b) Fisheries
(c) Tea, coffee and spices
(d) Oilseeds
(e) All of the above