MC EXCLUSIVE India-US trade deal protects sugar, dairy sectors and top agri crops: Govt sources

Earlier this week, commerce minister Piyush Goyal said that India and the US will protect their respective national interests while finalising the bilateral trade agreement.

• Major crops like rice, wheat, soya, and corn excluded from India-US trade deal
• Sugar and dairy sectors also exempted to protect Indian farmers and industries
• Deal aims to boost exports and tech access while safeguarding domestic interests

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The India-US trade deal provides protection to Indian farmers, with major crops such as rice, wheat, soya and corn left out of the bilateral agreement, which is likely to be announced in the next few days, top government sources told Moneycontrol.

The broader agreement was announced by both sides after a phone call between US President Donald Trump and Prime Minister Narendra Modi earlier this week. The trade pact also exempts the sugar and dairy industries, ensuring protection to key domestic sectors, sources aware of the development said.

Trump on February 2 had said the US has reached an agreement with India for the long-awaited trade deal, which will cut tariffs on New Delhi’s shipments from 50 percent to 18 percent.

Earlier on February 4, speaking in the Lok Sabha amid sharp political exchanges, Union commerce minister Piyush Goyal said that India and the US will protect their respective national interests while finalising the bilateral trade agreement.

Addressing concerns around the pact, Goyal asserted that India will not compromise on the interests of its agriculture and dairy sectors. He underlined that farmers’ concerns remain fully safeguarded and that no dilution of sensitive domestic sectors will be allowed.

The minister said the agreement is expected to unlock significant opportunities for labour-intensive industries such as textiles, apparel, leather, and gems and jewellery, while also enabling India to access advanced technology and innovation from the US. He described the deal as one that would benefit Indian industry, inspire national pride, and ensure domestic producers are not adversely impacted.

Goyal added that the trade agreement is designed to help Indian businesses scale globally while maintaining strong safeguards for the domestic economy, with technology collaboration and export-led growth emerging as key gains.