India–US Trade Framework Secures Farmers While Opening New Export Doors: Sitharaman
India–US interim trade framework shields farm and dairy sectors while boosting export access.
Finance Minister Nirmala Sitharaman on Saturday said India has successfully safeguarded the sensitivities of its agriculture and animal husbandry sectors under the interim trade framework with the United States. At the same time, the agreement secures wider market access for Indian exports, strengthening the country’s trade position with one of its largest economic partners.
She said the framework ensures complete protection for key farm, dairy and allied products, helping sustain farmer incomes and rural livelihoods. Sensitive items such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, select vegetables and meat products have been kept outside tariff concessions to prevent any adverse impact on domestic producers.
Under the agreement, the United States will reduce reciprocal tariffs on Indian goods to 18 percent, creating significant export opportunities across multiple sectors. These include textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home décor, artisanal goods and select categories of machinery, which are expected to gain from improved access to the US market.
Also Read: US-India Trade: Tariff Cut to 18% to Supercharge Indian Exports, Says Sitharaman
The finance minister added that the framework also provides for sustained preferential market access between India and the US in sectors of mutual interest. Both countries will establish clear rules of origin to ensure that the benefits of the agreement accrue primarily to Indian and American businesses, preventing misuse by third countries.
In a separate statement, the White House said the two sides have committed to addressing non-tariff barriers affecting bilateral trade. It noted that India has agreed to work towards resolving long-standing non-tariff issues related to US food and agricultural products, while negotiations will continue towards a comprehensive Bilateral Trade Agreement.
The framework also grants India key trade advantages, including exemptions under Section 232 on aircraft parts, tariff rate quotas on auto parts and negotiated outcomes on generic pharmaceuticals. These measures are expected to lead to tangible export gains and reinforce India’s position as a reliable and competitive global trade partner.
Also Read: IMA Urges Sitharaman To Raise Healthcare Budget To 2.5% Of GDP
