India’s Agricultural Exports Grow Despite Trump Tariffs in 2025-26

India’s agricultural exports grew by 2.3% in 2025-26 despite higher tariffs imposed by the United States under the Trump administration.

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Key Trends in Agricultural Exports

• Resilient Export Growth
  • India’s farm exports increased from $52 billion (2024-25) to $53.1 billion (2025-26).
  • Agricultural exports performed better than India’s overall merchandise export growth of 0.9%.
• Near Historic High
  • Farm exports in 2025-26 remained close to the all-time high of $53.2 billion recorded in 2022-23.
  • The trend reflects growing competitiveness of Indian agricultural products globally.
• Marine Products Success
  • Marine product exports rose by 13.9% to over $8.4 billion despite reduced shipments to the U.S.
  • Higher exports to China and Southeast Asian markets offset losses in the American market.
• Strong Performing Commodities
  • Buffalo meat, coffee and fresh fruits and vegetables achieved record export levels in 2025-26.
  • Demand growth in Asia, Europe and West Asia supported export expansion.

Negative Impact of Trump Tariffs

• Higher Tariff Barriers: The United States imposed steep tariffs on several Indian exports, with rates reaching up to 50% before later reductions.
  • Sectors affected included pharmaceuticals, garments, jewellery, leather and agricultural products.
• Decline in Exports to the U.S.: Indian exports of marine products, spices, basmati rice and processed fruits and vegetables to the U.S. witnessed declines.
  • Marine exports to the U.S. fell from $2.7 billion to $2.3 billion during 2025-26.

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Factors Supporting Export Growth

• Market Diversification: Broader geographical spread of exports reduced vulnerability to protectionist measures.
  • Indian exporters diversified shipments towards countries such as China, Vietnam, Japan, Belgium, Thailand, Canada and the United Kingdom.
  • Reduced dependence on a single export destination improved resilience against tariff shocks.
• Competitive Pricing: Indian agricultural products remained price competitive in global markets due to lower production costs and large-scale output.
• Value Addition and Processing: Growth in processed and value-added agricultural products enhanced export earnings and market access.
• Government Support Measures: Export promotion schemes, logistics improvements and trade facilitation measures supported agricultural exporters.

Challenges Remaining

• Dependence on External Markets: Agricultural exports remain vulnerable to geopolitical tensions, tariff wars and global demand fluctuations.
• Quality and SPS Standards: Indian exports continue to face challenges related to sanitary and phytosanitary (SPS) standards in developed markets.
• Climate and Supply Risks: Climate variability, input costs and supply chain disruptions can affect export competitiveness.

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Conclusion

India’s agricultural export resilience demonstrates the importance of market diversification, competitive production and strategic trade adaptation amid rising global protectionism.

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