The trade agreement with the US rests on big export gains for farmers, forestry-linked products, and livelihood crops, the Commerce Ministry said Tuesday as it released a factsheet on "expanding opportunities" for India's agriculture, seafood, and food processing sectors.
The factsheet underlined the cut in reciprocal tariffs from 50 per cent (including the 25 per cent 'penalty' for buying Russian oil) to 18 per cent, and down to zero for a number of products.
It also pointed out that India had secured "zero-duty access" to a US import market of around US$46 billion, which includes an estimated US$1.4 billion in spices, processed foods, fruits, tea, coffee, and essential oils. India had also secured, it said, "preferential access… indicating substantial near-term export potential" for the larger export market worth US$160 billion.
The marine sector was a particular winner, the government said, noting it had access to an import market segment worth US$ 25 billion and offering significant expansion opportunities.
The agreement, the ministry indicated, would help maintain India's sizeable agricultural goods trade surplus with the United States, which was worth US$1.3 billion in 2024.
"Trade is positioned as complementary to domestic priorities, not disruptive," the ministry said.
The factsheet came after US President Donald Trump's office hailed the "historic" trade deal. The White House said India had agreed to "eliminate or reduce tariffs" on all US industrial goods and a wide range of US food and agricultural products, including "dried distillers' grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, and wines."
It also noted India had committed to purchasing over US$500 billion of US energy, information and communication technology, agricultural coal, and other products.
The India-US tariffs deal announced this month, first by Trump and then Prime Minister Narendra Modi, has kicked up equal amounts of cheer and criticism, with the opposition questioning the government over key provisions, including the impact on India's farmers.
The government has made it clear it has shielded, and will continue to shield, the country's price-sensitive agricultural and dairy markets, which provide jobs to crores of people.
