India Pushes Back After US Claim on More American Farm Imports Under Trade Deal: Reports

India to shield farm, dairy sectors amid US trade deal push

India plans to keep sensitive farm, dairy goods out of US trade deal
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India is likely to maintain its stance of keeping sensitive agricultural goods and dairy items out of the trade deal with the US, a government official told Moneycontrol.

“What has been the stance remains the stance. The usual stance (for sensitive items in agriculture, dairy) is likely to stay,” reported Moneycontrol citing an anonymous official.

The US-India trade deal, announced in the evening of February 2 is expected to bolster exports of American farm products to markets in India, raising prices and pumping cash into rural America, US Secretary of Agriculture Brooke Rollins wrote in a post on X.

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"New US-India deal will export more American farm products to India's massive market, lifting prices, and pumping cash into rural America. In 2024, America’s agricultural trade deficit with India was $1.3bn. India’s growing population is an important market for American agricultural products and today’s deal will go a long way to reducing this deficit," she wrote on X.

Meanwhile Congress demanded the complete details of the India-US trade deal, raising questions over several key aspects such as the opening of the agriculture sector, the reduction of tariffs to “zero” and a pause on the purchase of Russian oil, as claimed by US President Donald Trump,” reported ANI.

He asked “Trump says that India will move to reduce tariff and non-tariff barriers against the United States to ‘zero’. It seems India has agreed to completely open our market for America. This will impact Indian industry, traders and farmers. There is talk of opening the agriculture sector for America in the statement as well. What exactly is the deal?” He further raised questions on how the deal ensures security and interests of Indian farmers.

Congress also demanded that the Modi government must take the Parliament and the entire country into confidence and share all the details. 

Long-Awaited Trade Deal

United States President Donald Trump announced on February 2that after speaking with Indian Prime Minister Narendra Modi, both the countries have agreed to formalise a long-awaited trade deal.

In a Truth Social post on February 2, Trump said that the United States will reduce the 'reciprocal' tariffs imposed on India to 18% on all imports from their present 25% levy.

"Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%," US President Trump wrote in a post on Truth Social.

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