India US Trade Pact: India has successfully safeguarded its sensitive agricultural and dairy sectors in a new trade agreement with the United States, announced on February 7, 2026. The agreement ensures that no duty concessions will be granted on crucial goods such as maize, wheat, rice, soya, poultry, milk, cheese, ethanol, tobacco, and certain vegetables and meats.
Commerce and Industry Minister Piyush Goyal emphasized India’s commitment to protecting small and marginal farmers’ livelihoods through this agreement. The US has agreed to reduce tariffs on Indian goods from 50% to 18%, marking a significant shift in bilateral trade dynamics.
Historically, India has maintained high tariffs on agricultural imports to protect its vast rural population, which relies heavily on agriculture. Previous free trade agreements with the EU, UK, and Australia have also excluded sensitive agricultural products from duty concessions.
The agreement is expected to bolster India’s agricultural exports, which reached USD 51 billion in FY 2025, with ambitions to hit USD 100 billion in the coming years. The US, a key trading partner, imported USD 1.6 billion in agricultural goods from India in 2024.
As India and the US strengthen their trade ties, the focus remains on balancing economic growth with the protection of domestic industries. Future negotiations may explore further tariff reductions and expanded market access.
Published in SouthAsianDesk, February 7th, 2026
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