New Delhi: Finance Minister Nirmala Sitharaman said India has safeguarded key sensitivities of the agriculture and animal husbandry sectors while finalising the interim trade deal with the United States, ensuring balanced and farmer-friendly outcomes.
As part of the interim trade deal framework, the US will slash reciprocal tariffs on Indian goods to 18 per cent, providing a huge market opportunity in key sectors such as textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal products, and select machinery in the world’s largest economy.
“The framework protects key farm and dairy products, spices, and staples, strengthening farmer incomes,” said FM Sitharaman.
The Agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables, meat, etc.
The United States and India commit to providing each other preferential market access in sectors of respective interest on a sustained basis.
The United States and India will also establish rules of origin that ensure that the benefits of the Agreement accrue predominantly to the United States and India., according to a White House statement.
“The United States and India will address non-tariff barriers that affect bilateral trade. Recognising the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to the trade in U.S. food and agricultural products,” said the statement.
The White House further stated that it will work towards further expanding market access opportunities through the negotiations of the BTA. The United States affirms that it intends to take into consideration, during the negotiations of the BTA, India’s request that the United States continue to work to lower tariffs on Indian goods.
India will also get exemptions under section 232 on aircraft parts, tariff rate quota on auto parts and negotiated outcomes on generic pharmaceuticals, leading to tangible export gains in these sectors.
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Caption: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman addresses a post-Budget press conference at the National Media Centre in New Delhi on Sunday, February 1, 2026. (Photo: IANS/Prem Nath Pandey)
—IANS
