India has fully safeguarded its sensitive agricultural and dairy sectors under the proposed trade pact with the United States, government sources said, underscoring New Delhi’s firm stance on protecting farmer livelihoods while pursuing broader trade engagement. The assurance comes amid ongoing negotiations aimed at resolving long-standing trade frictions and expanding bilateral economic ties between the two countries.

According to officials familiar with the discussions, India has clearly communicated that key farm and dairy products will remain outside the scope of tariff concessions or market access commitments. These sectors are considered politically and economically sensitive, supporting millions of small and marginal farmers and forming a critical part of rural employment and food security. Any compromise, sources said, could expose domestic producers to subsidised imports and price volatility.

The United States has, in past negotiations, sought greater access for products such as dairy items, poultry, and certain agricultural commodities. India, however, has consistently resisted these demands, citing structural differences in farming practices, animal health standards, and the predominance of small-scale producers. Officials noted that these concerns have been reiterated during the latest round of talks.

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Despite the firm red lines on agriculture and dairy, negotiators indicated that progress has been made in other areas, including industrial goods, services, and regulatory cooperation. Both sides are reportedly exploring ways to reduce non-tariff barriers, improve supply chain resilience, and facilitate greater investment flows without undermining domestic priorities.

The trade discussions are taking place against the backdrop of expanding India–US strategic relations and a shared interest in deepening economic cooperation. Bilateral trade has grown steadily in recent years, with the US emerging as one of India’s largest trading partners, particularly in services and high-value manufacturing.

Government officials emphasised that India remains committed to a balanced and mutually beneficial trade arrangement. While open to enhancing market access where feasible, New Delhi has made it clear that the protection of sensitive farm and dairy products is non-negotiable, ensuring that any eventual pact aligns with national interests and rural welfare considerations.

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