US meat, seafood to garnish India-US bilateral commerce settlement

India’s apex meals regulator, the Food Safety Standard Authority of India (FSSAI), has despatched its proposal to the Union commerce ministry on expediting registration for meals to be imported from the US, stated two Indian authorities officers conscious of the event.

The fast-track route will permit US firms planning to promote meat and meat merchandise, seafood and oil in India to hit the bottom working to faucet the nation’s booming meals product market.

“FSSAI has despatched its proposal to the commerce ministry for its consideration. Fast-tracking the registration functions of US-based meals institutions will guarantee ease-of-doing enterprise (in India),” one of many officers stated.

“We largely get oil, fish, meat, nutraceuticals, and so forth., from the United States. These are high-risk commodities so require quick-approval protocol,” stated the second official, including that 158 US meals firms had registered on FSSAI’s platform final yr.

Overall, FSSAI obtained about 3,500 functions from overseas meals firms final yr on its digital platform known as Registration of Foreign Food Manufacturers, or ReFoM.

As per the proposed plan, US meals firms licensed by the US Food and Drug Administration (US FDA) might be thought of for fast-track registration by FSSAI, in response to the officers, who declined to be recognized.

India and the US are anticipated to signal a bilateral trade agreement earlier than 8 July, when the 90-day pause on the US’s reciprocal tariff motion expires, Mint reported solely on 16 May. A deal earlier than 8 July would doubtless assist India keep away from the US’s reciprocal tariffs and reset the bilateral commerce relationship between the 2 international locations on a secure footing.

FSSAI didn’t reply to Mint’s queries emailed on 13 May. Queries emailed to the commerce ministry on 20 May additionally remained unanswered. A US embassy spokesperson in New Delhi declined remark, saying, “We don’t touch upon ongoing bilateral negotiations. We refer you to the White House or USTR (US commerce consultant).”

Green mild, purple mild

A bilateral commerce settlement between India and the US may see the 2 nations remove tariff and non-tariff barriers for a majority of goods, together with farm produce, whereas defending delicate gadgets via a unfavorable listing or quota restrictions, Hindustan Times reported on 22 May.

The deal may see India considerably decreasing tariffs on US merchandise similar to cars and agricultural gadgets, with Washington anticipated to take away the ten% baseline tariff for Indian items and withdraw a proposed India-specific 16% extra tariff, the HT report stated, citing officers.

While some US agricultural gadgets and farm produce similar to maize, almonds, soyabean, pistachio, poultry, and meat may very well be allowed in India, there can be restrictions on genetically modified (GM) meals that aren’t permitted, the report added.

An Indian delegation led by commerce minister Piyush Goyal is at present in Washington to barter the primary tranche of the India-US bilateral commerce settlement.

Leaders of each the international locations on 13 February introduced plans to finalise a deal that might enhance bilateral commerce between India and the US from $200 billion now to $500 billion by 2030. In a joint declaration, India and the US dedicated to concluding the commerce deal by fall 2025, which corresponds to the interval between September and November within the Indian calendar context.

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India, nevertheless, has knowledgeable the World Trade Organization that it might impose $1.91 billion of levies on a spread of high-value imports from the US if a decision is just not discovered by early June on the US’s extension of safeguard duties on Indian metal and aluminium exports, Mint reported on 13 May citing a communication from New Delhi to the worldwide commerce physique.

On the standard of US meals imports, Biswajit Dhar, financial system and commerce professional at Delhi-based suppose tank Council for Social Development, stated such merchandise usually conform to excessive security requirements which are accepted in India. “However, questions have repeatedly been requested concerning the capability of Indian firms to adjust to the FDA requirements, and, due to this fact, their entry into the US,” Dhar stated.

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The India-US commerce stability

The US is India’s largest buying and selling companion, with bilateral commerce between the 2 international locations growing to $131.84 billion in 2024-25 from $119.72 billion in FY24, in response to the commerce ministry.

The commerce stability is at present in favour of India, with US imports into India increasing to $45.33 billion in FY25 from $42.20 billion within the yr prior. Indian items exports to the US elevated to $86.51 billion in FY25 from $77.52 billion in FY24, in response to commerce ministry knowledge.

US Vice President J.D. Vance, throughout his go to to India in April, stated India and the US have been working in direction of a commerce settlement that might be constructed on shared priorities similar to creating jobs, constructing sturdy provide chains, and reaching prosperity for employees.

He additionally stated Americans wished additional entry to Indian markets.

“(India) is a good place to do enterprise, and we wish to give our folks extra entry to this nation. And Indians, we imagine, will thrive from better commerce from the United States. This may be very a lot a win-win partnership and positively might be far into the longer term,” Vance stated.

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