India has at all times negotiated with a “clear mindset” on sectors which are “very” delicate for the nation in commerce pacts and has protected all these key segments beneath the interim commerce settlement with the U.S., Commerce Secretary Rajesh Agrawal stated.
He additionally stated that each groups are working to transform the joint assertion right into a authorized settlement, which is predicted to be finalised and signed earlier than the tip of March.
“India has at all times negotiated all agreements with a transparent mindset, something that could be very delicate to India, something the place we really feel our farmers, fishermen, dairy, they’ll be impacted, now we have been very clear to our associate nations that India cannot open up or present entry,” he instructed reporters in Nuremberg.
“In the event you take a look at all of the agreements that now we have finished within the final yr, 5 commerce agreements that we did — all of the delicate sectors have been protected. Within the U.S., all the important thing delicate sectors have been protected. Wherever there’s a little sensitivity, now we have used tariff charge quota mechanisms to make sure that any market entry is restricted in nature and it would not affect our farmers,” he added.
Below the interim commerce pact, which was introduced earlier this month, India has totally protected delicate agricultural and dairy merchandise equivalent to maize, wheat, rice, soya, poultry, milk, cheese, ethanol (gas), tobacco, sure greens and meat, as no responsibility concessions have been granted to the U.S. on these items beneath the pact.
These items are delicate as a result of they contain the livelihoods of small and marginal farmers within the nation.
In different Free Commerce Agreements (FTA), India has not prolonged any import responsibility concessions on delicate agri and dairy merchandise. It has not too long ago finalised FTAs with the European Union, the U.Okay. and Australia.
Agriculture and allied actions equivalent to animal husbandry type the spine of India’s rural financial system, using over 500 million folks. In contrast to in developed economies, the place agriculture is very mechanised and corporatised, in India, it’s a livelihood subject.
India’s agriculture sector is at the moment protected by average to excessive tariffs or import duties and rules to protect home farmers from unfair competitors.
The U.S. agri exports to India had been $1.6 billion in 2024. Key exports embody Almonds (in shell, $868 million); Pistachios ($121 million), Apples ($21 million), Ethanol (ethyl alcohol, $266 million).
The Secretary was in Nuremberg for the Biofach 2026 present, the place over 100 Indian exhibitors from about 20 States are showcasing their natural merchandise. The European Union (EU) is an enormous marketplace for these items.
“The groups are engaged on it, and by March, we’re hopeful to make it [interim trade pact with the U.S.] official,” Mr. Agrawal stated.
Speaking concerning the labour-intensive sectors, he stated the pact with the U.S. will give them an edge as in comparison with the competitor nations, that are going through greater tariffs than India within the American market.
The reciprocal tariffs on India will likely be lowered to 18%, whereas it’s 35% for China and 20% for Vietnam.
“For the reason that U.S. has been a robust marketplace for the labour-intensive sector, with this interim settlement, there will likely be a bonus to our labour-intensive sectors. They’ll be capable to develop unhindered”.
“So my sense is that Indian exporters will be capable to compete with their rivals, revive and rejuvenate the availability chains that they may have missed out throughout the Christmas time and see that Indian exports not solely develop however do properly as they had been doing final yr, and likewise develop within the coming years,” the Secretary stated.
Labour-intensive sectors equivalent to textiles, attire, marine, gems and jewelry had been impacted as a result of steep 50% tariffs imposed by the U.S.. The Trump-administration has eliminated the 25% punitive tariffs and can lower down the reciprocal tariffs to 18 % from 25%.
Mr. Agrawal additionally stated that stakeholders and exporters are pleased with the result, they usually have given a “thumbs up” to the general settlement.
“What now we have been in a position to obtain within the interim settlement is sweet for India and our exports. I do not see any main purple line on this,” he stated.
Printed – February 11, 2026 11:43 am IST
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