India-US Trade Deal: Farmers Stay Protected, Exports Gain Big, Whisky Gets Cheaper
India-US trade deal protects farmers, dairy & staples fully while boosting exports and slashing whisky import duties.
The newly announced India–US trade deal marks a calibrated balance between domestic protection and global market access, Commerce Minister Piyush Goyal said on Saturday. The agreement ensures that India’s most sensitive sectors—particularly agriculture and dairy—remain fully insulated from foreign competition, while Indian manufacturers and exporters gain wider access to the US market under reduced tariffs.
A central feature of the deal is India’s decision to offer zero tariff concessions on staple crops and core food items. Wheat, rice, maize, oilseeds, poultry, ethanol and tobacco continue to attract high import duties, ensuring that American farm products do not enter Indian markets. The government has emphasised that these safeguards protect millions of farmers and rural livelihoods dependent on food security crops.
India’s dairy sector has been kept entirely outside the agreement, described by officials as “100 percent secure.” Products such as milk, butter, ghee, cheese, yoghurt and paneer see no tariff reduction or market opening for US exporters. Alongside dairy, vegetables, fruits, spices and tea—ranging from mangoes and bananas to turmeric, cumin and black tea—remain untouched, preserving India’s traditional farm economy.
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In contrast, India has agreed to reduce tariffs on selected non-sensitive imports from the US. These include industrial machinery, electrical equipment, vehicles, chemicals, and high-end technology such as AI hardware, data-centre equipment and semiconductor inputs. The government views these cuts as critical to strengthening domestic manufacturing, lowering production costs and supporting India’s ambitions in advanced technology and infrastructure.
In return, the US will apply a uniform 18 percent tariff on a wide range of Indian exports that earlier faced duties of up to 50 percent. Sectors such as textiles, footwear, pharmaceuticals, gems and jewellery, home décor, chemicals and aircraft components are expected to benefit significantly. Additionally, steep reductions in duties on imported alcohol may lower prices for premium spirits in India, while increasing competition for domestic craft liquor brands.
Also Read: India Rice Exports Hit 21.55 Million Tonnes in 2025
