India's agriculture trade has witnessed a notable shift in dynamics during the fiscal year 2024-25. Despite a near stagnation in overall goods exports, the agricultural sector has shown remarkable resilience. Agricultural exports surged to $54.9 billion from $48.8 billion in 2023-24, marking a 6.4% growth. However, imports rose at a faster pace, escalating by 17.2%, from $32.9 billion to $38.6 billion.
India's top agricultural export products include:
The United States, United Kingdom, European Union, China, and Gulf countries represent the primary markets for India's agricultural exports. Particularly, the US and EU are substantial importers of marine products, rice, and spices.
India's significant agricultural imports encompass:
India relies heavily on imported palm, soybean, and sunflower oils due to insufficient domestic production and policy challenges. The nation imported $17.17 billion worth of oils in 2024-25 alone.
Free Trade Agreements (FTAs) with the US, UK, and EU can enhance access for Indian agricultural commodities such as rice, marine products, and spices by reducing tariffs and non-tariff obstacles. Additionally, India can pursue Geographical Indication (GI) protection for its unique products.
While FTAs offer opportunities, they also pose risks to India's agriculture sector. Opening up to imports from developed countries could adversely impact Indian farmers, particularly in sensitive areas like dairy, wheat, and edible oils, if affordable imports flood the market without adequate safeguards.
Nations like the US and EU provide substantial subsidies to their farmers. Importing such subsidized goods without appropriate domestic protection could lead to depressed local prices and undermine Indian producers.
Exports of cotton have been on a decline since 2012-13 due to production challenges and high domestic prices. Although buffalo meat exports have shown slight recovery, they remain below previous peaks due to regulatory and market hurdles.
Rice exports, combining basmati and non-basmati varieties, accounted for over $12.5 billion in 2024-25, contributing more than 20% to the total agricultural export value.
The Indian government often imposes export restrictions, such as on wheat and sugar in 2022-23, to ensure domestic supply and control inflation. While these measures maintain food availability, they may affect India's global trade consistency.
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