India Allows US Apples with Minimum Import Price, Finalizes Trade Pacts

India has granted quota-based duty concessions on US apples under an interim trade pact, imposing a minimum import price of Rs 80/kg and a 25% duty to protect domestic growers. Reciprocally, various Indian goods will face zero tariffs in the US. India also reduced duties on US alcoholic beverages, cosmetics, and medical devices. A similar agreement for EU apples includes a 20% duty and an Rs 80/kg MIP, with import caps. India further opened extra-long staple cotton imports to support its textile industry.

India has finalized key interim trade agreements, notably with the United States and the European Union, aiming to boost bilateral trade while safeguarding domestic interests. Under the India-US trade pact, US apples will be permitted into India with a minimum import price (MIP) of Rs 80 per kg and a 25% import duty, effectively barring apples priced below Rs 100 per kg to protect local farmers, a significant increase from the previous 50% duty and Rs 50/kg MIP. In return, a broad spectrum of Indian exports, including agricultural products, fruits, vegetables, tea, coffee, and spices, will benefit from zero reciprocal tariffs in the US market.Conversely, India has agreed to reduce or eliminate tariffs on various US products, such as alcoholic beverages, cosmetics, medical devices, high-end cars, motorcycles, wines, spirits, and specific dry fruits like walnuts and almonds. This agreement also addresses non-tariff barriers and provides duty benefits for American medicines and advanced medical equipment. Simultaneously, India has also concluded a trade pact with the European Union, lowering the duty on European apples to 20% with an Rs 80/kg MIP, capped initially at 50,000 tonnes annually. Furthermore, India has opened up imports of extra-long staple cotton under a quota system, extending the import duty exemption until December 2025, to meet the domestic textile industry's demand-supply gap. These pacts underscore India's strategy to balance market liberalization with robust protection for sensitive sectors like agriculture and MSMEs.