Historic deal protects dairy sector while boosting diverse agricultural exports

In a significant development for the nation's economy, India has successfully secured a favourable position in its latest trade negotiations with the United States. Union Minister Piyush Goyal announced on Saturday that the new India-US trade deal effectively protects the interests of domestic farmers and MSMEs while opening vast avenues for Indian products abroad.

Speaking at a press conference hours after the interim trade framework was unveiled, Goyal highlighted a major strategic victory. He noted that India has "flipped the script" by ensuring no import benefits were granted to American agricultural products that could harm local growers. Instead, New Delhi opened its doors only selectively to specific items like red sorghum, tree nuts, and wines.

Zero Duty for Indian Farm Produce

For Indian cultivators, the deal promises immediate rewards. A wide range of agricultural items will now enter the US market with zero reciprocal tariffs. This is a massive boost for sectors where India is self-reliant. Key commodities gaining duty-free access include tea, coffee, and spices—products that are vital to agricultural economies in states like Odisha.

"In agriculture, many products from India will now be exported to the US at zero duty," Goyal stated. He listed specific beneficiaries, including mangoes, bananas, guavas, pineapples, and mushrooms. Additionally, processed goods like bakery products and cocoa, along with sesame seeds, will face no tariff barriers.

Boost for Handlooms and Technology

The Minister assured that the agreement safeguards India's handloom and handicraft sectors, which are crucial for rural employment. Beyond agriculture, the deal removes duties on high-value exports. Indian pharmaceuticals, gems, and jewellery will now enjoy easier access to the American consumer base.

Technology exports are also set to rise, with smartphones, aircraft parts, and essential auto components attracting zero tariffs.

Competitive Edge Over Global Rivals

This agreement places India ahead of major global competitors. While nations like China face steep 35% tariffs and Vietnam faces 20%, India has secured a lower tariff structure. Furthermore, the additional 25% penalty previously linked to Russian oil purchases has been scrapped by the Trump administration.

Goyal affirmed that this deal opens a $30 trillion market opportunity, marking a "golden day" for Indian exporters looking to expand their global footprint.