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India–US Interim Trade Deal Set to Boost Agriculture: Exports Rise, Farmers Gain, Agri-Tech Gets Push

Business   |   Feb 07, 2026

India’s agricultural sector is poised to gain significantly from the newly announced India–US interim trade agreement, with the framework expected to boost exports, enhance farmers’ income, and encourage greater investment in agri-technology.

The agreement lowers reciprocal tariffs on several Indian exports to the United States and improves market access, positioning Indian exporters—particularly those in the agriculture and allied sectors—for stronger global competitiveness. Industry experts describe the pact as a strategic win that balances export growth with domestic protection.

Importantly, the framework safeguards India’s sensitive agricultural segments. No market access concessions have been granted to US imports in key categories such as spices, vegetables, and fruits, ensuring that domestic producers remain protected from external competition.

Vegetables have been fully excluded from the agreement. This includes dried vegetables, beans, pulses, and root crops such as potatoes and sweet potatoes, all of which will continue to attract existing tariffs with no reductions. The move is seen as crucial for shielding small and marginal farmers who depend heavily on these crops.

At the same time, improved access to the US market is expected to stimulate demand for Indian agricultural exports, support value-added agri-products, and attract investment into modern farming practices, supply chains, and agri-tech innovation.

Overall, the interim trade deal strikes a careful balance—opening new export opportunities while preserving India’s core agricultural interests—making the sector one of the key beneficiaries of closer India–US trade engagement.

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