A dual-track strategy is crucial at this stage. In the near term, India should selectively lower high tariffs on non-sensitive imports while negotiating non-tariff safeguards to protect vulnerable sectors like poultry

As India and the US inch closer to finalizing a bilateral trade deal, NITI Aayog has urged a pragmatic ‘dual-track’ approach for agricultural trade. The think tank recommends that India selectively ease tariffs on non-sensitive agricultural imports from the US while strategically offering concessions where domestic shortages exist.

In its working paper, Promoting India-US Agricultural Trade Under the New US Trade Regime, the Aayog stressed that “a dual-track approach is essential now.” It proposed that India reduce tariffs on non-sensitive imports in the short term, while negotiating non-tariff safeguards to protect vulnerable sectors such as poultry.

The recommendation follows the global ripple effect triggered by the US’s announcement of reciprocal tariffs and increased market access for its exports after Donald Trump’s re-election. Against this backdrop, India could offer targeted concessions in critical segments like edible oils and nuts. Noting that India is the world’s largest importer of edible oils and that the US has a surplus of genetically modified soybeans, the paper suggests easing import restrictions on soybean oil to reduce the trade imbalance without undermining local production. The government has already lowered import duties on crude edible oils, including soybean oil, from 27.5 per cent to 16.5 per cent.

The paper also pushes for expanded US market access for India’s high-performing agricultural exports such as shrimp, fish, spices, rice, tea, coffee, and rubber. India’s annual farm exports to the US stand at roughly $5.75 billion, and NITI Aayog recommends leveraging duty waivers or tariff rate quotas (TRQs) to grow this further.

Beyond immediate trade measures, the think tank calls for medium-term structural reforms aimed at enhancing the competitiveness of India’s farm sector globally. These include adopting modern technologies, market reforms, increased private sector participation, improved logistics, and the development of competitive value chains.

While India’s agricultural exports to the US have traditionally centered on frozen shrimp, basmati rice, and spices, there is a growing presence of processed cereals and other value-added products as the export portfolio diversifies. India currently maintains a surplus in agricultural trade with the US.

On the import front, India primarily sources high-value products such as almonds, pistachios, and walnuts from the US.