What is the news?
The big trade agreement between India and America will give India greater access to the American agricultural market. Under this agreement, India will get zero duty facility on many products in the US agricultural import market worth $ 46 billion (about Rs 4,100 billion). This includes products like spices, fruits, tea, coffee and processed foods. The government says that this will directly benefit farmers, small producers and exporters.
Opportunity for India in the big market of 206 billion dollars
India is also likely to get better access to America’s large agricultural and food product import market worth about $206 billion (about Rs 18,500 billion). This big market includes many products where India’s share is still low. Low tariffs and easy access can help Indian companies find new buyers. This will increase India’s agricultural export scope and in the long run, export earnings can also be strengthened.
Which products will benefit from zero duty
India’s spices and spice products are expected to benefit the most from the zero duty facility. India’s share in spices imported into America is stronger than before. Apart from this, there will also be easy access to tea, coffee, fruits like mango and banana. This decision will also be helpful for processed fruit products and forest based goods, which will make Indian agricultural products more competitive.
marine sector
Relief to marine sector from 18 percent less duty
Under the agreement, 18 percent lower duty will be applied on some products. This will greatly benefit India’s marine sector, especially shrimp and marine products. America’s marine import market is quite large and Indian products are already preferred there. Apart from this, Basmati rice, special varieties of rice, oilseeds and some other agricultural products are also expected to get good benefit from lower duty.
When will the agreement come into effect and what next?
According to the government, the zero duty facility will be implemented after the signing of the interim trade agreement between India and the US, which may happen around March. The 18 percent lower duty will be applicable only when America issues a formal order. In the year 2024, India had exported agricultural products worth $ 3.4 billion (about Rs 300 billion) to America. India’s trade balance is expected to become stronger with this new agreement.
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