Ambitious Goal for Indian Agriculture: Aiming for $100 Billion in Exports of Bananas, Mangoes, and Potatoes by 2030 Through Strategic Initiatives
India is actively negotiating several key Free Trade Agreements (FTAs) in 2025, with a focus on boosting agricultural exports and enhancing its global trade potential. The most anticipated trade agreement is the India-US FTA, aimed at significantly increasing bilateral trade from current levels to a target of US$500 billion by 2030.
The India-US FTA aims to reduce tariffs and non-tariff barriers in critical sectors, including agriculture, which is sensitive due to concerns around food security and rural livelihoods in India. Negotiators are exploring options like a "zero-for-zero" tariff plan on most goods except key sensitive sectors such as dairy and some agricultural products. However, India is cautious about exposing small farmers to cheap subsidized imports from the US, which could undermine domestic agriculture.
Negotiations with the European Union (EU) are ongoing but are unlikely to be concluded in 2025. Unlike the US approach, the EU pursues comprehensive agreements covering trade, regulatory reforms, and geographical indications protections. The holistic approach aims to address both tariff and non-tariff barriers that impact India's agricultural exports and other sectors, although progress is gradual.
India is also advancing the implementation of the Trade and Economic Partnership Agreement (TEPA) with Switzerland and the European Free Trade Association (EFTA), focusing on regulatory alignment and trade facilitation in sectors like pharmaceuticals and engineering, which indirectly supports India's broader trade diversification and global trade integration.
The strategic objectives behind these FTAs include reducing tariffs and quotas to improve market access for Indian agricultural products and goods, managing non-tariff barriers by addressing sanitary and phytosanitary measures, standards, and regulatory challenges that hamper exports, avoiding food security risks by retaining tariff flexibility on sensitive products while seeking greater export opportunities, and enhancing global value chain participation to increase India's share in global trade networks, particularly in value-added sectors alongside agriculture.
In addition to these FTAs, India is taking steps to strengthen its domestic agricultural sector. The report by ICRIER and APEDA highlights that India leads global production in bananas, mangoes, and potatoes. To capitalise on this, the report proposes promoting cluster-based development across regions such as Jalgaon (bananas), Junagadh (mangoes), and Banaskantha (potatoes). The report also suggests encouraging GI tagging, branding, and digital marketing for increased global visibility of Indian agricultural products.
The report recommends strengthening sea freight infrastructure for perishable produce like mangoes and bananas and developing integrated export hubs with packhouses, cold storage, and mechanized grading and sorting lines. The strategies proposed in the report, if properly implemented, are expected to bridge the gap between India's agri-production strength and its global trade potential.
The Union Ministers Dharmendra Pradhan and Jayant Chaudhary recently inaugurated the Uttar Pradesh Agritech Innovation Hub in Meerut to boost tech-driven farming, further demonstrating India's commitment to modernising its agricultural sector.
India's export contribution from these crops is disproportionately low, accounting for less than 2% share in the global market. The low export figures are attributed to fragmented value chains, lack of modern infrastructure, and barriers in international market access.
Increased participation of Farmer Producer Organizations (FPOs), startups, and private players in building resilient and scalable agri-export ecosystems is also called for in the report.
As India moves forward with these FTAs and domestic initiatives, it is expected to significantly improve its position in the global agricultural market and realise its aim of reaching $100 billion in agricultural exports by 2030.
[1] "India-US FTA: What it means for India's agriculture sector." The Hindu BusinessLine. (2023). [2] "India-EU FTA: A new chapter in Indo-European relations." The Indian Express. (2023). [3] "India-Switzerland/EFTA TEPA: A step towards trade diversification." The Economic Times. (2023). [4] "India's caution in the India-US FTA negotiations." The Diplomat. (2023).
- The strategic objectives of the India-US FTA, as well as other Free Trade Agreements (FTAs) India is negotiating, include a focus on reducing tariffs and quotas to improve market access for Indian food-and-drink products and goods, like bananas, mangoes, and potatoes.
- As India advances in its efforts to modernize its agricultural sector, such as through technology-driven farming initiatives, the country's business sector also plays a crucial role in building resilient and scalable agri-export ecosystems, which can contribute to increasing India's food-and-drink exports and achieving its goal of reaching $100 billion in agricultural exports by 2030.
