A trade mission to India this week has federal and state agricultural officials expressing optimism about future trade with the nation, which has a relatively young population and a growing middle class.
A trade delegation of officials from USDA and the Office of the U.S. Trade Representative, along with representatives from 11 state agriculture departments and 47 farm groups, are in New Delhi this week to meet with Indian officials and companies. Alexis Taylor, USDA's undersecretary for trade and foreign agricultural affairs, told reporters on a press call Wednesday that she believes the conversations that have taken place during the trip are "more positive" than they were when she came with a delegation in 2016.
U.S. agriculture officials have reason to be hopeful. India, a nation of 1.4 billion people, last year reduced tariffs on almonds, apples, chickpeas, lentils, walnuts, blueberries, cranberries, turkeys and frozen duck. Taylor said those reductions could expand trade this year by $345 million.
"There's a lot of similarities in some of the crops that are grown here in India," California Agriculture Secretary Karen Ross said on the press call. "But I think what we all offer working together is complementary and supplemental ways of filling in each other's diets and security needs, especially for a fast-growing population, a very young population and one that is seeing tremendous growth in its middle income."
Forty-five percent of Indians, or 630 million people, are 24 years old or younger, Taylor said. India's middle class is also growing; 66 million people are expected to live in middle- and upper-middle-class households by 2030.
"That's a lot of purchasing power, and if we can get in now and develop teeth for American food and agricultural products, we can have lifelong consumers of those products," Taylor said.
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Still, India currently has tariffs on agricultural products averaging 113.1%, though they range as high as 300%, according to a 2024 report by the Office of the U.S. Trade Representative. It has applied tariffs on coffee, raisins, walnuts, natural rubber, apples, corn, vegetable oils, poultry, potatoes, citrus, almonds, pecans, apples, grapes, canned peaches, chocolate, cookies and frozen french fries, according to the report.
Taylor said she met with officials from the India's Ministry of Agriculture, Commerce and Industry, as well as its External Affairs Ministry. One of the topics that came up, she said, was India's prohibition on the importation of ethanol for fuel use, despite committing to make E20 available by 2025. The nation currently blends 10% ethanol in gasoline.
"I think there's an opportunity to really benefit consumers and producers here that is also supportive of our expanded U.S. export interests," she said of India's ambitious biofuel targets.
Doug Goehring, North Dakota's agriculture secretary, said he was "quite discouraged" after three previous trade missions to India over the last 10 years, but said on this trip he noticed shifts in the nation's demographics and the mindset of its leaders that changed his "whole perspective."
One thing, in particular, that stood out to him was more discussion around "nutritional security" rather than just "food security." Another was increased interest in advancing agricultural technology.
"I've got to say, I'm going back and encouraging our companies to continue to seek this market," Goehring said.
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