FM Sitharaman: India–US Trade Framework Fully Shields Farm and Dairy Sectors

Finance MinisterNirmala Sitharaman on Saturday said India has successfully protected the interests of its agriculture and animal husbandry sectors while securing expanded market access for exports under the interim trade framework with the United States.

Speaking to reporters, FM  Sitharaman emphasised that the framework safeguards key farm, dairy, and allied products, ensuring stronger farmer incomes and sustaining rural livelihoods. “The framework protects essential agricultural and dairy products, spices, and staples, which will strengthen farmer incomes,” she said.

Under the agreement, the US will lower reciprocal tariffs on Indian goods to 18 per cent, opening significant opportunities for sectors such as textiles and apparel, leather and footwear, plastics and rubber products, organic chemicals, home décor, artisanal products, and select machinery.

Sensitive agricultural and dairy commodities, including maize, wheat, rice, soya, poultry, milk, cheese, ethanol (fuel), tobacco, select vegetables, and meat have been fully protected to shield farmers from market shocks, the finance minister added.

The framework also establishes preferential market access in sectors of mutual interest on a sustained basis, with both countries agreeing on rules of origin to ensure benefits accrue primarily to India and the United States.

In a statement, the White House welcomed the agreement, highlighting the commitment of both countries to tackle non-tariff barriers affecting bilateral trade. It noted that India has agreed to address longstanding non-tariff issues affecting US food and agricultural exports.

The statement also indicated that both nations will work toward expanding market access further through negotiations on a comprehensive Bilateral Trade Agreement (BTA). The US confirmed it would consider India’s request for continued tariff reductions during these discussions.

Beyond agriculture, the framework provides India with exemptions under Section 232 for aircraft parts, tariff rate quotas on auto components, and negotiated gains for generic pharmaceuticals, expected to deliver tangible export benefits in these sectors.

Also Read:  India–US Interim Trade Deal to Give Major Push to ‘Make in India’: PM Modi