Lok Sabha Question No. 2964 (UNSTARRED), answered on 2026-03-10
Subject: Impact of India-US Trade Deal
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Benny Behanan

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## UNSTARRED QUESTION NO. 2964

## LOK SABHA ANSWERED ON 10/03/2026

## IMPACT OF INDIA-US TRADE DEAL

## 2964.  SHRI BENNY BEHANAN:

Will  the  Minister  of COMMERCE  AND  INDUSTRY ( वाणिज्य  एवं  उद्योग  मंत्री) be pleased to state:

- (a) whether the Government has conducted any comprehensive assessment of the likely impact of the proposed India-US trade agreement between India and the United  States  on  Indian  agriculture  and  farmers'  incomes,  if  so,  the  details thereof;
- (b) whether  the  agreement  proposes  reduction  of  import  duties  or  expansion  of market  access  for  agricultural  commodities  such  as  dairy  products,  pulses, oilseeds, cotton, maize and other farm products, if so, the details thereof;
- (c) the  details  of  safeguards  proposed  to  protect  small  and marginal  farmers from possible adverse effects arising out of increased imports and price volatility;
- (d) whether  the  Government  has  estimated  the  likely  impact  of  the  agreement  on MSP operations,  public  procurement  and  food  security  mechanisms,  if  so,  the details thereof;
- (e) whether  any  study  has  been  undertaken  to  assess  the  likely  impact  of  the agreement on India's GDP, particularly the contribution of the agricultural sector, if so, the details thereof; and
- (f) whether  the  Government  place  the  details  with  farmers'  organisations,  State Governments  and  other  stakeholders  in  the  public  domain,  if  so,  the  details thereof?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) to (f) India and the United States announced a trade deal on 2nd February 2026. A Joint Statement for the same was released on February 07 2026.

- The  agreement  will  provide  opportunities  to  Indian  farmers  and  fishermen  to enhance  their  exports  in  their  areas  of  strength,  such  as  marine  products, basmati  rice,  spices,  tea  and  coffee,  oilseeds,  and  certain  fruits.  It  will  also provide preferential tariff access to a big market for agroforestry-linked products such  as  vegetable  saps,  waxes,  nuts,  plating  material,  coconut,  poppy  seeds, vegetables and certain roots, along with processed fruit products such as juices,

pulp  and  jams.  The  tariff  concessions  will  create  a  conducive  environment  for Indian  farmers  to  sell  to  a  huge  American  annual  import  market  of  more  than Rs.14 lakh crore.

- India  has  fully  protected  its  sensitive  agricultural  sectors  through  a  carefully designed Exclusion Category, ensuring no tariff concessions are provided in the Agreement  on  key  products  such  as  Rice,  Wheat,  Poultry,  Dairy,  Soyameal, Maize, Millets, Groundnuts, Honey, Tobacco etc.
- India  has  offered  limited  and  carefully  calibrated  tariff  concessions  on  select agricultural  products  while  safeguarding  domestic  sensitivities  through  quotas, phased  concession  and  partial  duty  reductions.  On  products  such  as  Apples, Walnuts  and Soyabean Oil where India  imports  in  significant  quantities  due  to domestic demand exceeding production, concession is limited and quota-based so  that  imports  help  in  diversification  of  sourcing.  The  quotas  are  well  within current  global  imports  so  that  supply  gaps  are  met  without  adversely  affecting Indian farmers. Similarly, in the backdrop of growing demand, animal feed related products such as DDGS and Non-GM Red Sorghum, have been considered in limited quantities and with partial tariff concessions so that there is no adverse impact on domestic feed crops. Likewise, Cotton has been offered in a calibrated quota-based  concession  considering  India's existing trade pattern of both importing and exporting cotton and cotton products to meet quality requirements.
- Overall the terms of concessions in the Agreement are expected to benefit Indian farmers and open new export opportunities.

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