The India-US trade deal has deliberately ring-fenced politically sensitive agricultural segments, with staples such as rice, wheat, soya and corn kept out of the agreement, senior government sources told CNBC-TV18. Sugar and dairy products have also been excluded from the India-US FTA, they said. This, the government says, is aimed at insulating Indian farmers and dairymen from external shocks.Agriculture and dairy have long been treated as red-line sectors by New Delhi, given the sheer scale of rural livelihoods dependent on them and the political risks of exposing small producers to heavily subsidised American imports. Officials point out that these sectors have remained “sticky issues” not just in talks with the US, but also in negotiations with the European Union and the UK.The clarification from New Delhi comes amid assertions by US President Donald Trump and senior American officials that India has agreed to open up its agriculture sector as part of the broader trade understanding.But the Indian government has clarified that India remains committed to protecting the interests of its farmers.
US President Trump has announced that India would buy American products worth $500 billion as part of the latest trade agreement between the two countries.
Detailing the important aspects of the pact, Commerce and Industry Minister Piyush Goyal presented a snapshot of how the money would be spent. "The target of $500 billion bilateral trade will mean more exports as well as sourcing," he said.
