Explainer: How India-US interim trade deal boosts Indian agriculture
India and the US just issued a Joint Statement outlining a framework for an Interim Agreement that's set to boost India's agricultural exports in a major way.
Announced in early February 2026, the agreement slashes or removes tariffs on US industrial goods and products like certain cereals such as dried distillers' grains and red sorghum, fruits, nuts, and even wines.
What does the deal mean for India?
This deal means India will buy $500 billion worth of US energy and tech over five years—and in return, Indian farmers get much better access to the massive US market.
The US is lowering its reciprocal tariff on Indian-origin goods from 25% to 18%, giving zero-duty entry for items like spices, tea, coffee, mangoes, and more.
Sensitive sectors—like dairy and poultry—are fully protected. As Commerce Minister Piyush Goyal put it: "All sensitive items in agriculture have been fully protected."