India’s apex food regulator, the Food Safety Standard Authority of India (FSSAI), has sent its proposal to the Union commerce ministry on expediting registration for foods to be imported from the US, said two Indian government officials aware of the development.
The fast-track route will allow US companies planning to sell meat and meat products, seafood and oil in India to hit the ground running to tap the country’s booming food product market.
“FSSAI has sent its proposal to the commerce ministry for its consideration. Fast-tracking the registration applications of US-based food establishments will ensure ease-of-doing business (in India),” one of the officials said.
“We largely get oil, fish, meat, nutraceuticals, etc., from the United States. These are high-risk commodities so require quick-approval protocol,” said the second official, adding that 158 US food companies had registered on FSSAI’s platform last year.
Overall, FSSAI received about 3,500 applications from foreign food companies last year on its digital platform called Registration of Foreign Food Manufacturers, or ReFoM.
As per the proposed plan, US food companies certified by the US Food and Drug Administration (US FDA) will be considered for fast-track registration by FSSAI, according to the officials, who declined to be identified.
India and the US are expected to sign a bilateral trade agreement before 8 July, when the 90-day pause on the US’s reciprocal tariff action expires, Mint reported exclusively on 16 May. A deal before 8 July would likely help India avoid the US’s reciprocal tariffs and reset the bilateral trade relationship between the two countries on a stable footing.
FSSAI did not reply to Mint’s queries emailed on 13 May. Queries emailed to the commerce ministry on 20 May also remained unanswered. A US embassy spokesperson in New Delhi declined comment, saying, “We do not comment on ongoing bilateral negotiations. We refer you to the White House or USTR (US trade representative).”
Green light, red light
A bilateral trade agreement between India and the US could see the two nations remove tariff and non-tariff barriers for a majority of goods, including farm produce, while protecting sensitive items through a negative list or quota restrictions, Hindustan Times reported on 22 May.
The deal could see India substantially reducing tariffs on US products such as automobiles and agricultural items, with Washington expected to remove the 10% baseline tariff for Indian goods and withdraw a proposed India-specific 16% additional tariff, the HT report said, citing officials.
While some US agricultural items and farm produce such as maize, almonds, soyabean, pistachio, poultry, and meat could be allowed in India, there would be restrictions on genetically modified (GM) foods that are not permitted, the report added.
An Indian delegation led by commerce minister Piyush Goyal is currently in Washington to negotiate the first tranche of the India-US bilateral trade agreement.
Leaders of both the countries on 13 February announced plans to finalise a deal that would boost bilateral trade between India and the US from $200 billion now to $500 billion by 2030. In a joint declaration, India and the US committed to concluding the trade deal by fall 2025, which corresponds to the period between September and November in the Indian calendar context.
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India, however, has informed the World Trade Organization that it would impose $1.91 billion of levies on a range of high-value imports from the US if a resolution is not found by early June on the US’s extension of safeguard duties on Indian steel and aluminium exports, Mint reported on 13 May citing a communication from New Delhi to the global trade body.
On the quality of US food imports, Biswajit Dhar, economy and trade expert at Delhi-based think tank Council for Social Development, said such products typically conform to high safety standards that are accepted in India. “However, questions have repeatedly been asked about the ability of Indian companies to comply with the FDA standards, and, therefore, their entry into the US,” Dhar said.
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The India-US trade balance
The US is India’s largest trading partner, with bilateral trade between the two countries increasing to $131.84 billion in 2024-25 from $119.72 billion in FY24, according to the commerce ministry.
The trade balance is currently in favour of India, with US imports into India expanding to $45.33 billion in FY25 from $42.20 billion in the year prior. Indian goods exports to the US increased to $86.51 billion in FY25 from $77.52 billion in FY24, according to commerce ministry data.
US Vice President J.D. Vance, during his visit to India in April, said India and the US were working towards a trade agreement that would be built on shared priorities such as creating jobs, building durable supply chains, and achieving prosperity for workers.
He also said Americans wanted further access to Indian markets.
“(India) is a great place to do business, and we want to give our people more access to this country. And Indians, we believe, will thrive from greater commerce from the United States. This is very much a win-win partnership and certainly will be far into the future,” Vance said.
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Source:https://www.livemint.com/industry/us-food-imports-india-us-bilateral-trade-agreement-fast-track-food-registration-fssai-market-access-tariff-reduction-11747823726799.html