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Trade deal with US safeguards India's agri, poultry and dairy interests: Goyal
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Tuesday, 10 February, 2026, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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In a major 'breakthrough' for bilateral relations, India and the United States have finalised an interim trade framework after the two leaders Prime Minister Narendra Modi and President Donald Trump agreed on a trade deal.
Union Commerce Minister Piyush Goyal emphasised that the deal provides a massive $30 trillion market opportunity for Indian produce without compromising the livelihoods of millions of small-scale farmers.
Goyal stated that the agreement reflects India’s commitment to safeguarding farmers’ interests and sustaining rural livelihoods by completely protecting sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, certain vegetables and meat.
“This agreement will help India and the US remain focused on working together to further deepen economic cooperation, reflecting shared commitment to sustainable growth for our people and businesses,” stated Goyal.
Goyal was categorical in his remarks and stated that India has granted no tariff concessions to the U.S. on products where India is already self-reliant. He elaborated that essential commodities like wheat, rice, sugar, millets, maize, pulses and soybean remain under full protection with no duty relief for U.S. exporters.
Additionally despite Washington’s long-standing demands, India has excluded the entire dairy and poultry sectors to protect local rural cooperatives along with green tea, ground nut, honey, malt, non-alcoholic beverages and starch.
Further, Goyal confirmed that the framework explicitly prohibits the entry of genetically modified (GM) foods into the Indian market along with ‘no relief’ was granted for major Indian fruits like bananas, strawberries and citrus fruits.
While India restricted its own imports, it successfully negotiated zero reciprocal tariffs for several high-value Indian agricultural exports. These products previously faced U.S. duties as high as 50%.
Products include tea, coffee, spices (turmeric, ginger), coconut oil, mangoes, guava, avocado, banana, pineapple, kiwi, papaya, mushrooms, cashew, areca nuts, cocoa products, sesame seeds, fruit pulps and jams.
The breakthrough followed a pivotal telephone conversation between Modi and Trump on Feb 2 this year.
During the high-stakes call, Trump agreed to slash the "reciprocal tariff" on Indian goods—which had climbed as high as 50% due to oil-related penalties—down to 18%.
"Wonderful to speak with my dear friend President Trump today," PM Modi posted on X shortly after. "Delighted that 'Made in India' products will now have a reduced tariff. Big thanks to President Trump on behalf of 1.4 billion people," Modi wrote.
Trump, in his remarks, termed the move a gesture of 'friendship and respect,' noting that while India would move toward lowering barriers on specific U.S. goods like tree nuts (almonds/walnuts) and apples, the 'amazing relationship' between the two leaders was the engine behind the sudden resolution of the year-long trade standoff.
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