India and the United States have reached a trade agreement that reduces US tariffs on Indian goods from 50% to 18%, while excluding sensitive Indian agriculture and dairy products from the deal. Union Commerce and Industry Minister Piyush Goyal stated that the interests of Indian farmers and the dairy sector have been fully safeguarded. The agreement is expected to benefit several export-oriented sectors and is in the final stages of technical detailing.
According to The Indian Express, Piyush Goyal emphasised that the protection of agriculture and dairy was a priority throughout the negotiations. He stated, “The Prime Minister is constantly concerned about our farmers, those associated with animal husbandry, and the dairy sector. He has never allowed their interests to be compromised. In this US trade deal, the sensitive sectors of agriculture and dairy have been protected.”
As reported by Hindustan Times, the deal provides zero-duty entry for Indian goods worth $10 billion into the US and exempts Indian dairy and sensitive agriculture items from tariff reductions. The agreement also removes punitive and reciprocal tariffs on a wide range of Indian exports, with about 2,000 products eligible for reduced or zero duties.
As highlighted by The Hindu, Piyush Goyal clarified that the trade deal will not include sensitive agricultural items and dairy. He described the agreement as the best among India’s competitors and reiterated that Prime Minister Narendra Modi has always protected these sectors in trade negotiations.
“The Prime Minister is constantly concerned about our farmers, those associated with animal husbandry, and the dairy sector. He has never allowed their interests to be compromised,” Piyush Goyal said, as quoted in the official statement.
As noted in an article by Financial Express, US Trade Representative Jamieson Greer confirmed that India will lower tariffs on a wide array of US industrial and agricultural goods to zero, but will maintain protections for certain key agricultural and dairy products. The US side acknowledged that both countries have agreed to continue working on market access for sensitive items.
Sectoral analysis indicates that textiles, apparel, leather, footwear, carpets, home decor, marine products, chemicals, and gems and jewellery are among the biggest beneficiaries of the tariff reductions. These sectors are expected to see a revival in orders and improved competitiveness in the US market.
Stock market movements following the announcement reflected positive sentiment, with benchmark indices Sensex and Nifty trading higher amid fresh foreign fund inflows. However, the rally was partially offset by declines in IT stocks.
“The deal is not just about trade but also about integrating India into global value chains and attracting investments worth lakhs of crores into the country,” Piyush Goyal stated during a press briefing.
Further details suggest the agreement could indirectly benefit India’s real estate sector by boosting foreign direct investment and demand for commercial office space, particularly for global capability centres. Lower trade tensions and a stronger rupee are expected to support capital inflows and improve business sentiment.
Ongoing discussions highlighted unresolved questions regarding the implementation timeline and the full scope of India’s commitments. While the government has assured that sensitive sectors are protected, opposition parties have called for greater transparency and parliamentary discussion of the deal’s details.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.