India and US Accelerate Efforts to Enhance Bilateral Trade
India and the United States are making significant strides in enhancing trade relations by addressing bureaucratic hurdles that have hindered the exchange of various commodities. Recent developments have focused on streamlining the import of American apples and improving the export process for Indian shrimp. A delegation from the U.S. Food and Drug Administration (FDA) recently visited India to assess shrimp export challenges, with expectations of a major agreement by year-end. Meanwhile, India is considering procedural changes to facilitate apple imports from the U.S., responding to concerns raised in a recent USTR report.
Progress in Shrimp Exports
India has established itself as the leading shrimp exporter to the United States, with exports valued at $2.7 billion in the last financial year. However, the trade has faced significant challenges, particularly due to an 18% tariff imposed during the Trump administration. Beyond tariffs, Indian shrimp shipments have frequently been rejected for various reasons, including concerns over antibiotic content, improper labeling, and sanitation issues. In the first half of 2025 alone, multiple rejections were recorded, complicating trade relations.
To address these issues, a U.S. FDA delegation visited India to discuss the potential for a Regional Partnership Agreement (RPA) that could streamline shrimp trade. This agreement aims to establish clear protocols and safety audit mechanisms for seafood imports, which could significantly reduce shipment rejections and expedite customs clearances in the U.S. Meetings were held with India’s Marine Products Export Development Authority, and ongoing assessments of regulatory compliance are being conducted with various Indian governmental departments. The goal is to finalize the agreement by the end of the year.
Facilitating Apple Imports
In a bid to enhance the import of U.S. apples, India is preparing to implement substantial procedural changes. Current regulations require ‘non-GM origin’ and ‘GM-free’ certificates for apple imports, a requirement that has severely impacted U.S. apple exports. The U.S. Department of Agriculture does not provide such certifications, leading to complaints lodged by the U.S. with the World Trade Organization.
The Indian government is now considering a proposal that would simplify the import process by accepting a declaration from the U.S. FDA, ensuring that no genetically modified apples or products will enter India. This declaration would replace the current certification requirement and may need additional validation from Indian diplomatic missions in the U.S. Importantly, Indian authorities would retain their rights to inspect shipments. Given that over a million boxes of American apples are expected to arrive in 2024, these changes are crucial for facilitating trade.
Broader Trade Adjustments
In addition to apples, India is contemplating similar procedural adjustments for other U.S. imports, starting with Ready to Drink (RTD) alcohol. Current regulations permit a low alcohol content of 0.5-8% in “low alcohol beverages,” but proposed changes would allow for a higher alcohol content of 10%-15%. This adjustment reflects India’s willingness to adapt its import regulations to foster better trade relations.
Furthermore, additional concessions are being considered for U.S. Alfalfa hay and Distiller’s Dried Grains with Solubles (DDGS) used in animal feed. While approval for Alfalfa hay appears imminent, the process for DDGS is facing delays due to requirements from the Genetic Engineering Appraisal Committee. These potential changes signify India’s commitment to enhancing trade ties with the United States and addressing existing barriers in various sectors.
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