Agricultural goods, dairy might be excluded from India-US trade deal
03 Feb 2026
India is likely to maintain its long-standing position of excluding sensitive agricultural goods and dairy items from the proposed trade deal with the United States.
A government official, who wished to remain anonymous, confirmed this stance to Moneycontrol.
The move comes as part of India's traditional approach in trade negotiations where key farm products and dairy have been excluded from recent deals with countries such as the UK, New Zealand, and the European Union.
Trump announced trade deal yesterday
Deal details
The trade deal between India and the US was announced by US President Donald Trump yesterday.
He had said that the agreement would greatly reduce reciprocal tariffs.
As part of this agreement, Trump had claimed that the US would lower reciprocal tariffs on Indian goods to 18%, while duties on American products imported into India would be reduced to zero.
Negotiators working on documentation
Ongoing discussions
The official also revealed that negotiators from both the sides are currently working on the documentation for the trade deal and are in talks about it.
However, it is not yet clear if this deal is a part of a larger Bilateral Trade Agreement (BTA) or if it is the BTA itself.
The two countries had agreed to launch talks for such an agreement in February 2025.
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