Kolkata: The emerging India-US trade agreement can be a winner for Indian agri commodities, SBI Research has said. The agency has estimated Indian exports may rise for the top 15 items to the US by about $97 billion in a year. The potential could sail past $100 billion mark when the remaining items are included. “India’s export to the US on agri commodities set to jump as 75% will now be zero tariff,” SBI Research, which is the think tank of India’s biggest commercial bank has stated in a recent report.
Rice, spices, oilseeds and tea/coffee
SBI Research has also said “within agricultural products valued at $1.035 bn have assured zero reciprocal tariff, which will significantly help Indian farmers and. exporters to scale up”.
The agency thinks the commodities to benefit hugely can be rice, spices, oilseeds and tea/coffee. The US imports a lot of Indian rice. It is almost 24% of the total rice imports and SBI Research has stated this will this will further help Indian farmers. “Tea, coffee, & spices have share of ~3%, this deal will support plantation economy.” The fishery sector of the country was badly impacted by the US tariff wall.
Export Gain for Indian farmers (Jan- Nov in $ Mn)
Fish & Aquatic Invertebrates
US Imports from World: 18,848
US imports from India: 1817 (9.6%)
Rice
US Imports from World: 1,378
US imports from India: 341 (24.7%)
Coffee, Tea, Mate & Spices
US Imports from World: 14,026
US imports from India: 396 (2.8%)
Edible Fruit & Nuts; Citrus Fruit
US Imports from World: 21,522
US imports from India: 39 (0.2%)
Edible Vegetables & Certain Roots
US Imports from World: 12,402
US imports from India: 109 (0.9%)
Prep Vegetables, Fruit, Nuts
US Imports from World: 13,774
US imports from India: 192 (1.4%)
Total
US Imports from World: 81,950
US imports from India: 2,894 (3.5%)
(Source: PIB, Ministry of Commerce and Industry,
US-India trade
SBI Research has also mentioned that the share of the US in Indian imports is only about 7% while US share in Indian exports is about 20%. ‘However, in some commodities, the US share is as much as 20-40% which is further going to increase as India decides to reduce the tariff,” it wrote in the note. India’s trade surplus with the US was $40.9 billion in FY25 and $26 billion in April-Dec period in the current financial year.
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