India-US Farm Trade to Thrive with Trump’s Presidential Return
India-US Agricultural Trade Set to Expand under Trump’s Return to Office
With Donald Trump’s anticipated policies as he resumes office, experts forecast significant opportunities for India’s agricultural trade with the United States. This renewed political rapport is expected to bolster Indian exports. Especially high-demand commodities like tea, coffee, and spices. Also broadening India’s market access for US imports, such as almonds, walnuts, apples, and blueberries. The evolving trade dynamics could lead to a boost in bilateral agricultural exchange, benefiting both countries.India’s Export Gains through the China-Plus-One Strategy
The US's shift towards a “China-plus-one” trade strategy opens substantial new opportunities for India’s agricultural products. Prof. Rakesh Mohan Joshi is Vice-Chancellor of the Indian Institute of Foreign Trade. He anticipates that this strategy could enable Indian commodities such as tea, spices, and rice to gain broader access in the American market. S Chandrasekaran, a trade policy analyst, highlights similar potential for Indian exports. It includes guar gum, meat, and soybean meal, which stand to benefit from a realignment of supply chains away from China.Key Exports and Imports in India-US Agricultural Trade
In the 2023-24 fiscal year, India’s agricultural exports to the United States reached approximately $5.19 billion. This includes staples like rice, sugar, spices, and cotton, each essential to India’s agricultural economy. With potential easing of trade tariffs and a strategic interest in diversifying away from China. Experts predict an increase in Indian exports to the US, underscoring a mutually beneficial economic relationship.India, in turn, has become a major destination for US agricultural products, importing goods valued at $1.842 billion in 2023. Tree nuts constitute a substantial portion, with almonds alone accounting for $834 million and pistachios for $145 million. Additionally, the recent removal of retaliatory tariffs on US apples has paved the way for American exporters to reclaim their market share in India, providing consumers with a broader choice of quality imports.
Expanded Market Access and Future Trade Outlook
Analysts expect that an increase in imports of US products, including cotton and ethanol, will help deepen the agricultural trade between India and the US. The US ranked as the world’s largest agricultural exporter. This could meet India’s expanding demand for high-quality imported foods and goods. This emerging trade phase promises benefits for both nations. From supporting India’s domestic market to giving Indian consumers wider access to American agricultural products.Through continued bilateral engagement and tariff adjustments, the strengthened India-US agricultural trade is anticipated to promote growth in India’s agri-export sector while fulfilling rising consumer demand for diverse and premium-quality imports.
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