New Delhi has firmly safeguarded its agricultural and dairy sectors in the landmark interim trade agreement with the United States. Contrary to opposition claims of farmer exploitation, the deal explicitly bars a wide array of American products from entering the Indian market, ensuring robust protection for local farmers and cooperatives.
Key sectors like textiles, leather, footwear, handicrafts, plastics, rubber, and home decor stand to gain immensely. The US has slashed its tariffs on these Indian exports from a punishing 50%—comprising a base 25% plus an additional 25%—down to just 18%. This tariff relief is poised to unleash a surge in exports, creating millions of jobs, particularly for women and youth in manufacturing hubs across India.
Commerce Minister Piyush Goyal has decisively countered Congress party narratives suggesting harm to farmers. Under the protected list, critical staples such as rice, wheat, corn, soybeans, milk, cheese, poultry, and ethanol remain off-limits to US imports. Dairy products including liquid milk, powdered milk, condensed milk, cream, yogurt, buttermilk, butter, ghee, butter oil, paneer, whey products, and cheese are completely excluded from Indian markets.
The agricultural blacklist is exhaustive: US wheat, copra, millets like ragi and jowar, oats, flour, chickpeas, potatoes, onions, peas, beans, mushrooms, legumes, frozen vegetables, oranges, grapes, lemons, strawberries, and mixed canned vegetables find no entry. Even spices such as black pepper, cloves, dry green chilies, cinnamon, coriander, cumin, asafoetida, ginger, turmeric, carom seeds, fenugreek, mustard, and spice powders are shielded.
This strategic closure opens a colossal $300 billion US market for Indian exporters, especially MSMEs, farmers, and fishermen, without compromising domestic food security. Exemptions under US Section 232 for aircraft parts, alongside future tariff reductions on generics, gems, diamonds, and aircraft components, further sweeten the deal. India’s calculated stance prioritizes self-reliance while expanding global trade footprints.