Trump’s U-turn! This US decision will benefit India by Rs. 26,000 crore
President Donald Trump has suddenly taken a big step to control the rising inflation in America. The decision to reduce import duty on more than 250 food items has not only brought relief to American consumers but has also brought smiles on the faces of Indian farmers and agricultural exporters. It is believed that this decision will directly benefit India’s agricultural exports by 2.5 to 3 billion dollars, i.e., approximately Rs 22,000 to 26,000 crores. At a time when many Indian products were lagging in the American market due to continuously increasing tariffs, this step has brought a new wave of hope.
The 250 food items on which the US has reduced import duties include 229 agricultural commodities. Heavy tariffs imposed on India’s strongholds, including spices, tea, coffee, cashews, and many fruits and vegetables, have severely impacted exports for the past several months. Indian spice exports were on the decline after the Trump administration increased tariffs by 50%, even though this sector has a market worth $358 million in the US. India also exports more than $82 million worth of tea and coffee annually. Now, with the tariff reduction, the situation is expected to change rapidly. Exports are likely to increase, especially in high-value categories like pepper, cardamom, cumin, turmeric, ginger, and premium fruit products.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said that the new US exemption is a major opportunity for India and could benefit exports worth approximately $3 billion. This relief will be a boon, especially for sectors where India’s quality and production capabilities are strong. According to experts, India will benefit the most in the following sectors:
-Spices and herbs
-High-value horticultural products
-Tea, coffee, and cashews
-Premium fruit products
