Commerce Secretary Rajesh Agrawal stated India has all the time negotiated “very clear-minded” areas in commerce agreements which are “very” delicate for the nation and has protected all these key areas beneath the interim commerce settlement with the US.
He additionally stated each groups are working to show the joint assertion right into a authorized settlement, which is anticipated to be finalized and signed by the tip of March.
“India has all the time negotiated all agreements with a transparent thoughts. We now have made it very clear to our companions that India can’t open up or present entry to any settlement that we really feel could be very delicate to India, that impacts our farmers, our fishermen, our dairy farms,” he advised reporters in Nuremberg.
“In the event you have a look at all of the agreements we have signed within the final 12 months, the 5 commerce agreements we have signed, all of the delicate areas are protected. In the USA, all of the necessary delicate areas are protected. Wherever there’s any sensitivity, we have used the tariff quota mechanism to make sure that any market entry is inherently restricted and that does not influence our farmers,” he added.
Underneath the interim commerce settlement introduced earlier this month, India has full safety for delicate agricultural and dairy merchandise comparable to corn, wheat, rice, soybeans, poultry, milk, cheese, ethanol (gasoline), tobacco, sure greens and meat, however the U.S. isn’t granted tariff concessions on this stuff beneath the settlement.
These things are delicate as they contain the livelihood of small and marginal farmers within the nation.
In different free commerce agreements (FTAs), India doesn’t provide import obligation concessions for delicate agricultural merchandise or dairy merchandise. Lately, it has concluded FTAs with the European Union, the UK, and Australia.
Agriculture and associated actions comparable to animal husbandry type the spine of India’s rural financial system, using over 500 million folks. Not like developed international locations the place agriculture is extremely mechanized and corporatized, in India farming is a matter of livelihood.
India’s agricultural sector is presently protected by average to excessive tariffs, import duties and laws to guard home farmers from unfair competitors.
US agricultural exports to India have been $1.6 billion in 2024. Main exports embrace almonds (in shell, $868 million). pistachios ($121 million), apples ($21 million), and ethanol (ethyl alcohol, $266 million).
He was in Nuremberg for the Biofach 2026 present, the place greater than 100 Indian exhibitors from round 20 states will showcase natural merchandise. The European Union (EU) is a big marketplace for these merchandise.
“The crew is engaged on it and we hope to formalize (the interim commerce settlement with the US) by March,” Agrawal stated.
In labor-intensive sectors, he stated the take care of the US will give India a bonus over its opponents, which face increased tariffs than India within the US market.
Reciprocal tariffs on India will likely be diminished to 18%, whereas these on China will likely be 35% and Vietnam will likely be 20%.
“America has been a powerful marketplace for labor-intensive sectors, so this interim settlement will profit our labor-intensive sectors. They’ll be capable to develop unhindered.”
“So, my sense is that Indian exporters will be capable to compete with their opponents and revive and rejuvenate the provision chains that they might have missed out over the Christmas interval, and that Indian exports is not going to solely develop, however will be capable to develop in addition to they did final 12 months and within the coming years as properly,” the Secretary stated.
The excessive 50% tariff imposed by the US affected labor-intensive sectors comparable to textiles, attire, marine, and gems and jewellery. The Trump administration will eradicate the 25% punitive tariff and scale back reciprocal tariffs from 25% to 18%.
Mr Agrawal additionally stated that stakeholders and exporters have been glad with the end result and “appreciated” the general settlement.
“What we’ve been in a position to obtain with the interim settlement is nice for India and our exports. I do not suppose there’s a massive crimson line that needs to be crossed right here,” he stated.
issued – February 11, 2026 11:43 AM IST
