India's Strategic Move to Boost Fertilizer Imports from the US

India is actively exploring avenues to increase its fertilizer imports from the United States. This initiative is part of a broader strategy aimed at diversifying its import sources, reducing dependency on countries like China, and addressing the growing trade imbalance with Washington, according to a government official.

Decline in Fertilizer Imports

India's fertilizer imports saw a 7.16% decrease in 2024-25, totaling $8.29 billion, down from $8.92 billion the previous year. The top suppliers to India included Russia, Saudi Arabia, Oman, China, Morocco, and the United States, with notable declines in imports from Russia and China.

Trade Dynamics Between India and the US

The US has raised concerns over its expanding trade deficit with India. Despite this, India's exports to the US grew by 11.6% in 2024-25, while imports from the US increased by 7.44%. This has led to India's trade surplus with the US widening to $41.18 billion.

Negotiations and Tariffs

Both nations are currently engaged in negotiations for a bilateral trade agreement, with ambitions to elevate bilateral trade to $500 billion by 2030. Recent US tariff announcements included India, but a 26% additional duty on Indian goods was temporarily suspended to facilitate ongoing trade discussions.

Shifts in Import Sources

While imports from Russia and China declined, India saw significant increases in fertilizer imports from Saudi Arabia, Oman, and Morocco, highlighting the country's efforts to diversify its supply sources.

India's agricultural sector, which employs nearly half of the country's workforce, remains heavily reliant on imported fertilizers to sustain its productivity.