India: Effects of Tariffs and Nontariff Measures on U.S. ... - USITC

Abstract
This report describes <strong>and</strong> analyzes policies <strong>and</strong> other factors that affect U.S. agricultural
exports to <strong>India</strong>. The findings suggest that <strong>India</strong>’s high agricultural tariffs are a
significant impediment to U.S. agricultural exports <strong>and</strong> that certain <strong>India</strong>n nontariff
measures (NTMs), including sanitary <strong>and</strong> phyosanitary measures, substantially limit or
effectively prohibit certain U.S. agricultural products. Agriculture is vital to <strong>India</strong>’s
economy, accounting for a substantial share <strong>of</strong> employment (60 percent) <strong>and</strong> GDP
(17 percent). Since <strong>India</strong> is largely self-sufficient in agricultural production, agricultural
imports represent a small share <strong>of</strong> <strong>India</strong>n consumption <strong>and</strong> are concentrated in a few
products. Broad intervention by the <strong>India</strong>n government in the agricultural sector,
including restrictive <strong>and</strong> variable trade policies, are designed to protect domestic
producers <strong>and</strong> consumers. The study provides an overview <strong>of</strong> <strong>India</strong>n agricultural
production, imports, <strong>and</strong> consumption during 2003–08; <strong>India</strong>n tariffs <strong>and</strong> NTMs; the
<strong>India</strong>n food marketing <strong>and</strong> distribution system; <strong>and</strong> <strong>India</strong>n government regulations
relating to the agricultural market, including foreign direct investment <strong>and</strong> intellectual
property rights policies. The study also provides economic modeling analysis <strong>of</strong> the
effects <strong>of</strong> <strong>India</strong>n tariffs <strong>and</strong> certain NTMs on U.S. agricultural exports.
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