India Draws the Line—Agriculture, Dairy Off-Limits in US Trade Talks

Image Source: Business Standard

As India and the United States inch closer to a potential trade pact ahead of the July 9 tariff deadline, Finance Minister Nirmala Sitharaman has made it clear: agriculture and dairy are nonnegotiable red lines. In an exclusive interview with Financial Express, Sitharaman emphasized that while India is eager for a “big, good, beautiful” agreement, it won’t come at the cost of its farmers.

Sensitive Sectors Shielded:

Sitharaman stated that “a high degree of caution” is being exercised around agriculture and dairy, citing their critical role in rural livelihoods and food security.
US Demands vs. Indian Caution:
The US is pushing for greater access to agricultural goods, ethanol, and dairy, along with reduced tariffs on electric vehicles, wines, and GM crops. India has firmly rejected GM crop access, citing food safety and farmer welfare.
India’s CounterPush:
India is seeking lower US duties on exports like textiles, gems, leather, and seafood, aiming to protect jobgenerating sectors.

Negotiation Status:

Talks have extended beyond their original June 27 deadline, with both sides hoping to finalize an interim deal before punitive tariffs kick in.

Strategic Balance

Sitharaman stressed that India is open to market access in other areas but won’t compromise on core domestic priorities. “We just can’t walk into it,” she said, referring to emerging market constraints.

The message is clear: India wants a deal—but not at the cost of its soil.

Sources: Financial Express, US News, Moneycontrol