Key Highlights:
India-US trade is driven more by practical economic needs than politics.
- Energy products like mineral fuels form a major share of imports due to rising demand.
- Gems and jewellery imports support India's export-driven manufacturing industry.
- Machinery imports reflect India's push toward industrial modernization and productivity growth.
- American dry fruits are popular in India due to quality and consistent supply.
- Iron and steel imports help fill domestic supply gaps for infrastructure and construction.
- Chemical imports, including acyclic hydrocarbons, support petrochemical and manufacturing sectors.
- Medical equipment imports are rising with the expansion of India's healthcare infrastructure.
- Vehicle imports are largely focused on specialized and high-performance industrial needs.
Introduction:
Talk about India-US trade and the focus usually shifts to geopolitics or alliances. Step back and look at the numbers, and a different story begins to emerge. A significant portion of this relationship is based on agriculture. And in the agricultural trade, the trend is sensible. It is driven by demand, supply, and price, not by headlines.
The agricultural imports of India from the United States have steadily increased over the last two decades. During the triennium ending (TE) 2004 and TE 2024, agricultural imports from the U.S. increased from approximately $291 million to over $2.2 billion. This trend has been more rapid than many had anticipated and has gradually altered the trade mix between the two nations.
What is significant is that this trade is dominated by a few high-value segments. Most of these are related to shifts in consumption patterns, industrial requirements, and gaps in Indian supply chains.
Let us examine the major segments.
1. Edible Fruits and Nuts
When you look at India’s agricultural imports from the U.S., one category stands out almost immediately — fruits and nuts. Over the past two decades, this segment has quietly become the backbone of bilateral agricultural trade.
Almonds alone constitute a large portion of this trade. In 2024, India imported approximately $1.02 billion of almonds, and close to 92% of these imports originated in the United States. The pricing has been very competitive, and this is why there is such heavy reliance on imports from America.
The demand side story is not very complex. Urbanization, income growth, and health and nutrition awareness have led to the increased consumption of nuts. What was earlier a festival and gift item is now a regular purchase.
Pistachios and walnuts also have a similar story. The import of pistachios from the U.S. has exceeded $100 million, and walnuts are a consistent category. The tariffs in some categories are relatively high, but the U.S. still maintains a strong market share because of quality and consistency.
2. Cotton
Cotton is a completely different story in terms of trade. India is a large producer and exporter, but it still imports American cotton. The reason is not that it lacks American cotton. It is consistent.In TE 2024, India imported over $324 million of cotton from the United States. This is because of the demand from the high-end textile manufacturers, who demand consistent fibre and quality.
This phenomenon of exporting and importing the same product is not uncommon in international trade. It is a result of industry segmentation. As the Indian textile industry shifts towards the high-end segment, such imports are likely to continue.
3. Beverages and Processed Agricultural Products
Another category that has emerged as an important one is beverages and processed agricultural products. Imports in this category have been increasing over the years because of the changing preferences of consumers and the rise of the high-end food retail business.
The growth of organized retail, the urban lifestyle, and the rise of disposable incomes are changing the consumption patterns. Imported products are no longer confined to the super-specialty segment. They are gradually moving into the mainstream.
4. Oilseeds and Feed Inputs
India produces large volumes of agricultural commodities, yet it still imports edible oils and animal feed. On the face of it, this looks contradictory. But the reasons are structural. Productivity is uneven, supply chains are fragmented, and output can swing with the weather. The U.S., with its scale in soybean production, simply fills this gap. Closing it will take time.
5. Specialty and High-Value Agricultural Products
Apart from the main products, there is a growing trend of importing high-value and specialty products. These products include processed foods, specialty ingredients, and high-end agricultural products.
This is a result of the overall consumption pattern. As markets develop, consumers increasingly demand quality, brands, and special features. This trend is expected to gain momentum with the continued growth of India’s middle class.
6. What This Trade Indicates
The pattern of agricultural imports from the U.S. to India indicates a complex transformation in the Indian economy. The trend is not solely based on demand. It is also influenced by the overall consumption pattern and the integration of global supply chains.
At the same time, India has continued to maintain its surplus in agricultural trade with the United States. Agriculture is still part of the India–US trade story, but it no longer carries the same weight. Non-agricultural exports have been growing much faster, while farm imports keep inching up.
This is a sign of a more mature and balanced trade relationship. The emphasis is slowly shifting from volume to value and from protection to competitiveness.
The Road Ahead
The road ahead will be to handle this relationship with care. On the one hand, India needs to safeguard its domestic producers and food security. On the other hand, it needs to be open to strategic imports where there are gaps in supply.
A balanced approach will be required. This will include selective changes in tariffs, tougher negotiations, and long-term reforms to enhance productivity and competitiveness.
There is no sudden shift here. The drivers are already visible—higher incomes, expanding markets, and closer supply chain links. The progress may be gradual, but the overall direction remains intact.
