US Tariff Exemptions Offer $1 Billion Relief To India’s Agri Exports

India’s agricultural exporters are set to gain a significant edge in the US market after Washington granted tariff exemptions on 254 products, including 229 agricultural items.

The move covers nearly $1 billion worth of US imports from India, effectively bringing a large chunk of India’s farm shipments under zero-duty access, according to Commerce Secretary Rajesh Agrawal.

The exemptions span high-value categories such as fruits and nuts, spices, processed food products, tea and coffee, offering relief to sectors that have been seeking greater competitiveness in the US.

The development is especially noteworthy given that India’s overall agricultural exports to the US stood at $2.5 billion in 2024, meaning about 40% of that value now comes under tariff-free access.

With several labour-intensive and agro-processed categories included in the exemption list, the move is expected to improve margins, expand market share, and unlock new opportunities for value-added Indian agri products.

For India, the tariff relief marks one of the most meaningful boosts to bilateral agri trade in recent years and is likely to support both farm-sector earnings and rural manufacturing linked to food processing.