India likely to keep sensitive agriculture goods, dairy protected in US trade deal, govt source says

Trump announced the trade deal between India and the US on Truth Social on February 2

India is expected to stick to its long-standing position of keeping sensitive agricultural goods and dairy items out of the trade deal with the US, a government official said, indicating these sectors are largely unlikely to be part of any major market-opening commitments.

“What has been the stance remains the stance. The usual stance (for sensitive items in agriculture, dairy) is likely to stay,” the official said, requesting anonymity.

The approach reflects India’s traditional stance in trade negotiations, with the country excluding key farm products and dairy from recent trade deals with the UK, New Zealand and the European Union.

President Donald Trump announced the trade deal between India and the US on Truth Social on February 2, saying the agreement would significantly roll back the reciprocal tariffs imposed from mid-2025.

As part of the agreement, Trump claimed the US will cut reciprocal tariffs on Indian goods to 18 percent, while duties on American products imported into India are expected to fall to zero.

The official said that negotiators from both sides are currently working on the documentation for the trade deal and are in discussions on the same.

It is not immediately clear whether the trade deal is the first tranche of a broader Bilateral Trade Agreement or the full-fledged BTA itself, talks for which the two countries decided to launch in February 2025.