Why were the agriculture and dairy sectors excluded from the trade deal?
The India–US trade deal was finalized with a clear priority: protecting Indian farmers’ interests.
Sensitive sectors such as agriculture and dairy were deliberately kept outside the agreement.
The government decided that opening these sectors could seriously harm rural livelihoods.
Agriculture employs around 45% of India’s population, making it socially and politically critical.
The dairy sector supports millions of small and marginal farmers, many owning just one or two cattle.
These sectors are deeply linked to food security, income stability, and rural employment.
If tariffs were reduced, cheap agricultural and dairy imports from the US could flood indian markets.
The US farming system is highly mechanized and large-scale, unlike India’s small, fragmented farms.
Indian farmers would be unable to compete with low-cost, high-volume foreign products.
Countries like the US, New Zealand, and australia are dominated by corporate farming firms.
These nations provide heavy subsidies to their farmers, reducing production costs.
Indian farmers, with minimal mechanization and support, would data-face unfair competition.
Experts estimate that removing tariffs could lead to annual losses of nearly ₹10.3 million for farmers.
Such losses would severely affect income, employment, and rural economic stability.
The dairy sector, in particular, would suffer due to its dependence on small-scale producers.
India has focused on expanding access to the US market for non-sensitive goods.
Import tariffs on indian goods have been reduced from 25% to 18%, benefiting exporters.
The deal also discusses strategic energy purchases, including crude oil imports.
Commerce minister Piyush Goyal confirmed that agriculture and dairy are fully protected.
The government emphadata-sized that there will be no compromise on farmers’ interests.
The exclusion reflects India’s commitment to balanced trade without sacrificing livelihoods.
Sensitive sectors such as agriculture and dairy were deliberately kept outside the agreement.
The government decided that opening these sectors could seriously harm rural livelihoods.
Agriculture and Dairy as Sensitive Sectors
Agriculture employs around 45% of India’s population, making it socially and politically critical.
The dairy sector supports millions of small and marginal farmers, many owning just one or two cattle.
These sectors are deeply linked to food security, income stability, and rural employment.
Risk of Cheap Imports
If tariffs were reduced, cheap agricultural and dairy imports from the US could flood indian markets.
The US farming system is highly mechanized and large-scale, unlike India’s small, fragmented farms.
Indian farmers would be unable to compete with low-cost, high-volume foreign products.
Unequal Competition with Developed Countries
Countries like the US, New Zealand, and australia are dominated by corporate farming firms.
These nations provide heavy subsidies to their farmers, reducing production costs.
Indian farmers, with minimal mechanization and support, would data-face unfair competition.
Potential Impact on Farmers’ Livelihoods
Experts estimate that removing tariffs could lead to annual losses of nearly ₹10.3 million for farmers.
Such losses would severely affect income, employment, and rural economic stability.
The dairy sector, in particular, would suffer due to its dependence on small-scale producers.
What the Trade Deal Includes Instead
India has focused on expanding access to the US market for non-sensitive goods.
Import tariffs on indian goods have been reduced from 25% to 18%, benefiting exporters.
The deal also discusses strategic energy purchases, including crude oil imports.
Government’s Stand
Commerce minister Piyush Goyal confirmed that agriculture and dairy are fully protected.
The government emphadata-sized that there will be no compromise on farmers’ interests.
The exclusion reflects India’s commitment to balanced trade without sacrificing livelihoods.