Trade Agreement with the US Very Important for Indian Farmers

05-Feb-2026 03:43 PM

New Delhi: The Union Commerce Minister has claimed that the bilateral trade agreement between India and the United States could open up a new world of opportunities for Indian farmers and entrepreneurs.

Indian products will be subject to an import duty of only 18 percent in the US, which is lower than that imposed on other competing exporting countries.

After lengthy negotiations, both countries have finally agreed on this trade agreement. According to the Commerce Minister, the agreement fully protects the interests of the Indian agriculture and dairy sectors, while simultaneously ensuring greater access for Indian agricultural products in US markets.

It is understood that India has not allowed the import of GM maize and soybeans from the US, nor has it accepted any proposal to reduce or eliminate import duties on dairy products.

The reduction of tariffs to 18 percent in the US could provide India with a good opportunity to increase exports of textiles and garments, as well as several other products including rice, spices, and cashews.

A significant increase in the export of spices, especially black pepper, is expected, as the US tariff is higher for other supplier countries like Vietnam, Brazil, and Indonesia.

Similarly, in the case of rice, the US imposes higher customs duties on products from Pakistan and Thailand than on those from India. The US is one of the most important markets for textile products.