India to gain from US reciprocal tariff cuts on Agricultural Products
India is expected to gain from the US decision to roll back reciprocal tariffs on agricultural products such as tea, coffee and spices said the Commerce Ministry. As per the order issued by the White House on 12th November, some agricultural products such as coffee, tea, tropical fruits, fruit juices, cocoa, spices, bananas, oranges, tomatoes, beef and certain fertilisers have been excluded from the reciprocal tariff regime. The order will be implemented from April 2.
The Commerce Ministry in this context, said that while the tariff cut applies to all trading partners, the new rule will create a level playing field for Indian exporters. India exports these goods worth over USD 1 billion annually. These goods here refer to ‘fruits and nuts, processed foods, spices, tea and coffee, essential oils, vegetables and edible roots. However, think tank GTRI has said that India will have a small gain from the US move. According to GTRI, that the shift in US Tariff Policy could marginally strengthen India's Competitive position in spices and niche horticulture, but the broader gains will accrue mainly to major Latin American, African, and ASEAN farm exporters unless India expands scale, builds cold-chain capacity, and diversifies its agricultural export basket.