India–US Trade Deal Live: US Says India Continues to Protect Its Agricultural Sector

India and the United States have taken a major step forward in finalising a long-awaited bilateral trade agreement, but Washington has acknowledged that India continues to maintain strong protection over its agricultural and dairy sectors. The issue remains one of the most sensitive points in negotiations between the two strategic partners.

US officials, commenting on the progress of the trade talks, said India has made it clear that its farm sector will not be opened up significantly as part of the deal. Agriculture employs a large portion of India’s population, and New Delhi has consistently described the sector as non-negotiable due to concerns over farmer livelihoods, food security, and rural stability.

The trade agreement, announced following high-level discussions between Indian Prime Minister Narendra Modi and US President Donald Trump, aims to strengthen economic ties, reduce trade barriers, and expand market access for businesses on both sides. Leaders from both countries have projected the deal as a step toward boosting bilateral trade and deepening strategic cooperation.

According to US trade representatives, the agreement includes tariff reductions on several Indian exports to the United States, which could benefit sectors such as manufacturing, textiles, and technology services. At the same time, the US is expected to gain increased access to India’s market in areas like energy, defence equipment, and industrial goods.

However, agriculture remains a clear exception. Indian officials have reiterated that sensitive farm and dairy products are fully safeguarded. The government has stressed that opening these sectors to foreign competition could negatively impact millions of small and marginal farmers, making protection essential from both an economic and political standpoint.

Commerce and Industry Minister Piyush Goyal has underlined that India’s core agricultural interests have been protected in the trade framework. He noted that while India supports fair and balanced trade, it will not compromise on sectors that directly affect rural livelihoods and food security.

India’s cautious approach to agriculture is not new. In previous trade negotiations with major economies such as the European Union, the United Kingdom, and regional trade blocs, India has consistently resisted pressure to liberalise its farm and dairy markets. The same position has now been reflected in talks with the United States.

From the US perspective, officials said the agreement still represents meaningful progress, laying the foundation for stronger economic engagement and future negotiations. Washington believes the deal can help address trade imbalances while creating new opportunities for American companies in India’s fast-growing economy.

While markets have responded positively to news of the agreement, analysts say the real impact will become clear only after the full text of the deal is released. Opposition parties and policy experts in India have also called for transparency, seeking clarity on tariff structures, non-tariff barriers, and long-term implications for domestic industries.

As both sides move closer to formalising the agreement, agriculture remains a key reminder of the careful balancing act India is pursuing — opening up to global trade while firmly safeguarding its most sensitive sectors.