India's Agriculture Trade Overview
India's agriculture exports increased by 6.4% to $51.9 billion in 2024-25 from $48.8 billion in the previous fiscal year, contrasting with a marginal 0.1% growth in overall goods exports. However, agriculture imports rose significantly by 17.2%, from $32.9 billion to $38.5 billion, reflecting a larger trend of declining agriculture trade surplus from $27.7 billion to $13.4 billion over the past decade.
Export Drivers
- Marine Products:
- Exports decreased from $8.1 billion in 2022-23 to $7.4 billion in the following years.
- Major markets include the US (35% share), China (20%), and the EU (15%).
- Rice:
- Record levels of non-basmati (14.1 million tonnes) and basmati (6.1 million tonnes) exports, valued at $12.5 billion.
- Basmati primarily exported to West Asia, non-basmati to Africa.
- Spices, Tobacco, Coffee, Fruits & Vegetables:
- Reached new highs in exports.
- Coffee exports benefited from global shortages due to weather conditions in Brazil and Vietnam.
Import Drivers
- Vegetable Oils and Pulses:
- Major import items due to low domestic yields and lack of government procurement systems.
- Pulses imports reached $5.5 billion in 2024-25.
- Cotton and Natural Rubber:
- Imports have increased due to stagnant domestic production.
- Fruits, Spices, and Alcoholic Beverages:
- Includes almonds, pistachios, walnuts, apples, and wines.
- Trade agreements may lead to increased imports of these items.
Impacts on Trade Agreements
Ongoing negotiations with the US and EU focus on tariff reductions and market access, particularly affecting agriculture trade. These discussions might influence future import and export dynamics, including potential duty cuts and easing barriers for GM crops.
Conclusion
India's agricultural trade dynamics underscore the complexity of balancing exports and imports amid global market changes and domestic supply challenges. The country's trade surplus has narrowed significantly, necessitating strategic policy adjustments to enhance competitive advantage in the global market.
