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India–US Trade Deal: Farmers’ Groups Flag Fears Even as Government Assures Safeguards

Commerce Minister Piyush Goyal tabled the India–US trade deal in Parliament, assuring protection for agriculture and dairy, even as farmers’ groups warned of risks from subsidised US imports

Photo by PTI
Commerce Minister Piyush Goyal Photo by PTI
  • Goyal says India safeguarded sensitive sectors, including agriculture and dairy, during negotiations.

  • US officials signal increased farm exports to India under the deal.

  • Farmers’ unions warn the pact could flood Indian markets with subsidised imports.

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Union Minister of Commerce and Industry Piyush Goyal introduced the India–US trade deal in the Lok Sabha on Tuesday. Goyal said India had “successfully safeguarded” its sensitive sectors after almost a year of negotiations with Washington.

US President Donald Trump on Monday announced on Truth Social that the India–US trade deal had been sealed and that Washington had reduced reciprocal tariffs on India to 18% from 50%. Prime Minister Narendra Modi welcomed the development and shared the news on X.

“Given the significant and varied interests of the two sides, it is natural that both would want to ensure the best possible outcome while safeguarding critical and sensitive sectors in their respective economies,” Goyal said in Parliament. “During the course of these negotiations, the Indian side was able to do this, in particular, by ensuring that the interests of our agriculture and dairy sectors were protected.”

He also highlighted that the revised tariffs on India are much lower than those faced by regional competitors, giving India a relative advantage. Speaking to PTI, Finance Minister Nirmala Sitharaman on Tuesday said the trade deal would be an “augury” for the domestic export sector.

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However, US Secretary of Agriculture Brooke Rollins said on Monday that Washington would export more farm products to India as part of the deal and inject more cash into rural America. “Thank you, US President Donald Trump, for once again delivering for our American farmers. The new US–India deal will export more American farm products to India’s massive market, lifting prices and pumping cash into rural America,” Rollins posted on X.

The Samyukta Kisan Morcha (SKM), an umbrella body of various farmers’ unions, issued a statement on Tuesday claiming that the deal would allow the US to flood Indian markets with highly subsidised agricultural products, PTI reported.

“The SKM strongly condemns the betrayal of the people, especially farmers, by the Modi government, allowing zero per cent import tariffs on US goods and surrendering to the pressure of US imperialism,” PTI reported, quoting the farmers’ body. “This trade deal, which allows Indian markets to be flooded by highly subsidised US agricultural products, will devastate the entire peasantry in India.”

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Details of the India–US trade deal remain unclear. Goyal clarified that a joint statement would be issued by both countries soon and that the two sides had reached a framework for a bilateral trade agreement.

“We will be shortly issuing a joint statement along with the details, which we will soon be inking with the US. As soon as the final understanding of the deal is inked, the joint statement is finalised and technical processes are completed, full details will be shared,” he said.