MAJOR RELIEF: India–US Interim Trade Deal Clears All Doubts, Farmers’ Interests Fully Protected

All uncertainties surrounding the India–US trade deal have now come to an end as both countries have released a framework for an interim trade agreement. Under this framework, the United States has reduced tariffs on Indian goods from nearly 50% to 18%. Additionally, the extra 25% tariff imposed over India’s purchase of Russian oil has been completely withdrawn, offering major relief to India. The biggest takeaway from this deal is that India has fully safeguarded its agriculture and dairy sectors, a key concern raised by the opposition. Both governments have clarified that no tariff concessions have been given to the US on sensitive Indian products such as maize, wheat, rice, soy, poultry, milk, cheese, ethanol, tobacco, certain vegetables, and meat. Union Commerce Minister Piyush Goyal stated that these decisions were taken keeping farmers’ income, food security, and the rural economy in mind. India has, however, agreed to reduce or remove duties on select US products like animal feed, dry fruits, fresh and processed fruits, soybean oil, wine, and spirits—making it a win-win deal. The White House and the Indian government have issued joint statements, while US Ambassador Sergio Gor called it the fulfillment of the vision of President Donald Trump and Prime Minister Narendra Modi.