India has “committed” to purchase $100 billion worth of American products annually for five years, which would largely include aircraft, technology items, precious metals, oil, nuclear products, and agricultural goods, The Indian Express has learnt. New Delhi currently imports $45.62 billion worth of American goods, while exports to the US stand at $86.51 billion. While announcing the India-US trade deal late Monday, US President Donald Trump had said India will buy over $500-billion worth of American energy, technology, agricultural products, and coal, among other products.
While the US has agreed to lower tariffs on India to 18% from 50% that were imposed last year, the $100-billion import commitments signal deep market access for American products that closely resemble India’s total imports from China.
However, government officials have clarified that India has maintained protection on genetically modified (GM) products, soya, poultry, maize, cereals, and corn. These are largely in line with New Delhi’s position in free trade agreements (FTA) with other countries, officials said.
The market access in agriculture has been given based on the division of agricultural products into several categories. The most sensitive items have been either kept out or have received the most protection, while opening the others in quotas and limits, they said.
India had given market access to apples to New Zealand and kiwis and pears to the European Union. Market access to wine, spirits and beer has also been a key element of market access to Western trade partners.
Officials said that most products coming from the US under the zero duty may not be competitive against Indian goods. On Monday, US President Donald Trump had said, “They (India) will likewise move forward to reduce their Tariffs and non-tariff barriers against the United States to ZERO.”
Government officials said that India and the US will come out with a joint statement in the next few days. The negotiated text will follow the announcement joint statement. Trump, in his tweet mentioned that the tariff elimination to 18% will come into effect “immediately”.
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The government addressed some of the American demands in the Union Budget, granting tax breaks to foreign companies operating data centre services from India. India also slashed duty on aircraft and nuclear products that have been demanded from the US in most deals it has entered into.
After US President Donald Trump on Monday slashed tariffs on India from 50% to 18% under the India-US trade deal, the US Agriculture Secretary, Brooke Rollins, said that the trade deal will improve access to American farm products to “India’s massive market”. This comes amid farmers’ concerns over a surge in imports of US farm products as Washington is considered to be among the world’s largest agricultural subsidisers.
“The new US-India deal will export more American farm products to India’s massive market, lifting prices and pumping cash into rural America. In 2024, America’s agricultural trade deficit with India was $1.3 billion. India’s growing population is an important market for American agricultural products, and today’s deal will go a long way to reducing this deficit,” Rollins said.
Trump, in a post on Truth Social, said, “The Prime Minister (Narendra Modi) also committed to ‘BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward”.
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Prime Minister Narendra Modi had on multiple occasions expressed his commitment to preventing any adverse impact on Indian farmers. On August 7, after the US President Donald Trump doubled tariffs on India to 50%, Modi said that he would not compromise “even if it entailed paying a very heavy personal price”.
“The well-being of Indian farmers, fisherfolk and cattle keepers is our foremost priority. Modi is standing like a wall against any adverse policy that could impact Indian farmers, fisherfolk and cattle keepers. India will never compromise the interests of Indian farmers, fisherfolk and cattle keepers,” the Prime Minister had said during his Independence Day speech.
The Indian Coordination Committee of Farmers Movements (ICCFM), a farmers’ body, had asked the government last year to exclude all aspects of agriculture from the US trade deal to protect the interests of Indian farmers.
In a letter to Commerce Minister Piyush Goyal, the ICCFM warned that granting duty-free access to US agricultural products under a trade agreement could have serious consequences. It said that the US has been engaged in a trade war with China, Mexico and Canada since 2018, which has severely affected its agricultural exports.
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“The US trade deficit in agriculture has nearly doubled, indicating a significant surplus they may seek to offload onto markets like India. For example, soybean exports from the US dropped from $34.4 billion in 2022 to $24.5 billion in 2024, while corn exports fell from $18.6 billion to $13.9 billion during the same period,” the letter stated.
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