Gujarat, Maharashtra to Gain from US Tariff Rollback

The rollback of US tariffs on several agricultural products is expected to benefit India’s western and southern industrialised states, with Gujarat and Maharashtra emerging as the biggest gainers. The easing of duties covers spices, fruits, coffee, and tea, and comes after a period of elevated tariffs imposed since August.

US Tariff Rollback: Major Boost for Gujarat and Maharashtra

According to a Moneycontrol analysis, Gujarat accounted for 24% of India’s spice exports in FY25, a sharp increase from 15% in FY18. This places the state at the centre of the product categories now receiving tariff relief.

Key export figures from 2024 include:

• $23.5 million worth of turmeric exports to the US

• $45 million worth of cumin seeds were exported to the US

• Both commodities represented over 40% of total American imports in their categories.

The rollback—announced on November 14 by US President Donald Trump—is expected to unlock an estimated $511 million in additional export opportunities across agriculture-linked products.

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Agri Exports Concentrated in Industrialised States

India’s agricultural export map has shifted significantly toward more industrialised states. In FY25, Gujarat, Maharashtra, Andhra Pradesh and Karnataka together accounted for nearly half of the country’s total farm shipments.

Top Agricultural Exporters in FY25

• Gujarat: $5.7 billion

• Maharashtra: $5.4 billion

• Andhra Pradesh: $3.9 billion

• Karnataka: $2.2 billion

These four states together contributed over $17 billion of India’s $36.9 billion agri exports in FY25.

Their dominance is driven by diversified commodity strengths:

• Gujarat: Strong in spices and rice exports despite limited rice production

• Maharashtra: Leads fruits & vegetables and cereal preparations

• Andhra Pradesh: A major hub for marine products, spices and rice

• Karnataka: Dominates India’s coffee exports with $814 million in shipments

Key Categories Led by Gujarat & Maharashtra

Other states such as Haryana, Tamil Nadu, Kerala and West Bengal maintain strengths in segments like dairy, tea and processed foods, but their overall scale remains lower compared with the Gujarat–Maharashtra–Andhra–Karnataka bloc.

Rising Regional Concentration

Recent data shows increasing consolidation among top-performing states:

• Gujarat’s share in India’s agri exports rose to 16.4% in FY24, up from 13.9% pre-pandemic.

• Andhra Pradesh’s share increased to 10.5%, gaining two percentage points.

• Punjab, Bihar, and Uttar Pradesh recorded declines in their export shares.

Why Gujarat and Maharashtra Stand Out?

Data from the Indian Spices Board highlights the states’ strong positions:

• Gujarat:

  • Ranks 1st in cumin and fennel production

  • Ranks 2nd in coriander seeds

  • Among the top 10 states for ginger and chilli

• Maharashtra:

  • India’s largest turmeric producer, contributing nearly 25% of the total output

  • Ranks ahead of Gujarat in ginger production

  • Holds a strong presence in high-value spice segments

These strengths position both states to benefit significantly from renewed access to the American market after tariff rollback.

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