India’s tea exporters are poised to gain a significant competitive advantage in the United States after a bilateral trade pact with Washington brought zero-duty access for key agricultural products, industry officials said, giving Indian producers an edge over rival suppliers including China.
Under the interim framework of the India-US trade agreement, tariffs on a range of Indian exports — including tea, spices, coffee and other farm products — have been cut to zero, reducing costs for exporters and enhancing price competitiveness in one of the world’s largest tea markets.
Exporters in West Bengal and Assam — India’s principal tea-producing regions — welcomed the development, noting that the U.S. market traditionally pays premium prices for Indian orthodox teas and specialty blends. With Chinese competitors facing higher effective tariffs, Indian teas are expected to become more attractive to U.S. buyers and could capture market share.
Industry leaders also highlighted that the tariff change comes at a time when India’s tea shipments to other markets such as the Middle East and China have already shown strong growth, while exports to the U.S. had dipped under previous higher duty regimes. The new duty-free status is seen as a catalyst to reverse that decline and drive long-term contract wins and volume growth.
“The removal of duties on tea shipments to the United States gives Indian exporters a clear competitive edge,” said a senior trade body representative. “Coupled with branding and quality focus on premium teas, this could significantly boost our footprint in the U.S. market.”
However, exporters caution that logistical, compliance and marketing efforts will be crucial to fully capitalise on the tariff advantage as Indian firms ramp up their engagement with U.S. buyers.
Overall, the trade pact is expected to be a game-changer for India’s tea sector, potentially helping it outpace competitors like China and deepen commercial ties with the United States.
