India's agricultural exports to hit $55 bn by 2025; Piyush Goyal says no concessions on sugar imports

India's agricultural exports are expected to hit $55 billion by 2025, according to a statement made by Indian Trade Minister Piyush Goyal on Tuesday. The announcement marks a significant milestone for India’s agrarian sector, underscoring the growing demand for Indian produce globally.

However, the announcement clearly signals India's stance on agricultural imports. India will not allow any tariff concessions on sugar imports under any trade deal, Goyal confirmed. 

A strong stance on agriculture in trade deals

This announcement follows a similar declaration by Goyal early in February, in which he confirmed that India had successfully kept its most sensitive agricultural sectors, including genetically modified (GM) crops and dairy, outside the scope of the India-US trade deal.

Addressing the press, Goyal emphasised the significance of protecting India’s agrarian heartland. “Interests of farmers, livestock holders have been safeguarded,” he said, ensuring that products such as GM crops, meat, poultry, dairy, rice, wheat, and sugar would not be allowed into Indian markets at reduced tariffs.

"India’s farm sector hasn’t been opened fully. Products where India is self-sufficient have been kept outside the deal," Goyal added, reinforcing the government's protective stance on its agricultural industry.

Protecting India’s self-sufficiency

Goyal went on to specify that the broad exclusions were made to protect India’s agricultural integrity. Beyond GM crops, commodities such as soybean, maize, and specific fruits like bananas and citrus have been kept off the table in trade negotiations. Additionally, products such as green tea, oilseeds, and ethanol will also not receive any tariff concessions.

While India has been firm on agricultural imports, the country has secured significant benefits for its exports under the new trade pact. The United States has agreed to offer India a “most preferred” duty status, reducing reciprocal tariffs from 50% to 18%, allowing Indian exporters to gain a competitive edge. “18% tariffs are better than our neighbouring countries… New orders will flow in for Indian manufacturers,” Goyal stated, highlighting the economic opportunities this agreement brings.