India's agri export to US set to jump as 75% of export items now enjoy zero tariff: SBI Report
- IBEF
- February 13, 2026
India's export business with America for products from agriculture looks set to increase as approximately 75% of Indian products now fall under zero-tariff status in the United States, according to a recent report from the State Bank of India (SBI). As a result of the developing trade relationship between India and the United States, leading to reductions in tariffs, it is forecast that India’s agricultural products will be more competitive in the US market because of lower costs to Indian exporters, combined with better access to one of the largest markets in the world for agricultural goods. The increased competitiveness through lower tariff rates for Indian exporters is expected to lead to an increase in shipping of key agricultural products, such as rice, spices, processed foods, fruits, and vegetables; thereby enabling Indian exporters to take advantage of more favourable prices for their products and effectively compete with other global suppliers.
According to the SBI's forecast, if there are reductions in tariff barriers for most agricultural goods from India, then it can be expected that the export growth will exceed previous expectations, assuming there is improved logistics efficiency as well as better quality control standards. Analysts believe this decision will support India's ongoing effort to diversify its exports by establishing new markets for agricultural products, particularly targeting high-value agricultural items produced in North America and Europe. Because of expected increases in agricultural exports, it is believed that India will receive increased foreign exchange earnings while also improving rural incomes and creating additional value added to the agricultural business value chain through increased exports of agricultural products from India. The report also highlighted that improvements to export markets and increased tariff competitiveness would lead to greater investments by private sector entities into export-oriented agri-processing facilities. Thus, as India prepares to take advantage of these opportunities, the SBI report indicates that there will also be a sustained increase in the number of agricultural products exported from India to the US, which will be a benefit to both farmers and exporters.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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