India–U.S. Trade Pact Set to Boost Agricultural Exports

13-Feb-2026 11:06 AM

New Delhi. The bilateral trade agreement between India and the United States will benefit both countries. Exports of several agricultural products from India to the United States are expected to increase significantly. The Chairman of the Agricultural and Processed Food Products Export Development Authority (APEDA), a body under the Union Ministry of Commerce, stated that exports of agricultural and organic products from India to the United States could increase rapidly following this interim trade agreement. Indian products will face an additional 18 percent tariff in the United States, giving Indian exporters a decisive competitive advantage in the US market.

Expressing strong confidence in the benefits of the agreement for the Indian agricultural sector, the Chairman stated that India will reap extremely beneficial and positive benefits from this agreement because the agreed-upon tariff rates are highly competitive.

The tariffs imposed on India are significantly lower than those imposed on other trading partners, and therefore, US importers may show significant interest in purchasing Indian products. This will give India an advantage over other countries.

Revealing India's impressive export performance despite recent challenges, the APEDA Chairman stated that exports of organic agricultural products to the United States increased by approximately 30 percent last year.

A hefty 50 percent import duty on Indian products in the United States came into effect in August 2025, yet American buyers remained undeterred. Now, the import duty has been reduced to 18 percent, making the situation even more favorable. India is expected to soon begin robust exports of agricultural and organic products to the United States.