India-US Trade Deal: ‘Protection Shield’ for Agriculture & Dairy; Know What’s Safe
New Delhi, February 7, 2026
India showcased strategic foresight in the historic interim trade agreement with the US, fully safeguarding farmers and dairy producers’ interests. Commerce Minister Piyush Goyal clarified that while export paths opened for Indian goods, no compromises were made on sensitive agricultural sectors.
India refused tariff cuts on subsidized US farm imports for these key items:
Millions of rural livelihoods protected:
Milk: Liquid, powder, condensed
Daily use: Ghee, butter, butter oil, curd
Cheese: Mozzarella and all foreign varieties
Main grains: Wheat, rice, corn, barley, sorghum
Millets: Bajra, ragi, oats, kodo
All flours (wheat, rice, corn) and husked grains
Spices: Black pepper, cloves, cumin, turmeric, ginger, asafoetida
Vegetables: Potato, onion, peas, garlic, okra, chickpeas
Fruits: Banana, mango, citrus fruits
India offered relief only in non-competitive areas:
Animal feed: Dried distillers grains (DDGs), red sorghum
Dry fruits: Reduced tariffs on almonds, walnuts
Premium goods: US wine, spirits, processed fruits
Trump’s Big Move: US tariffs on Indian goods cut from 50% to 18%, including removal of 25% penalty for Russian oil purchases
Energy Purchase: India to buy $500 billion US goods over 5 years (oil, gas, coking coal, Boeing aircraft)
Indian Exporters Benefit: Textiles, leather, auto parts, generic drugs gain major US market access
The interim pact will become a formal legal document by March 2026, marking a new chapter in bilateral trade relations.