THEBUSINESSBYTES BUREAU

NEW DELHI, FEBRUARY 8, 2026

Describing the recently concluded India–United States trade deal as historic and unprecedented, Union Minister of Agriculture and Farmers’ Welfare and Rural Development Shivraj Singh Chouhan said the agreement would usher in a new phase of growth and momentum for the Indian economy. Addressing a press conference at his residence in Bhopal, the Minister said the deal goes far beyond a conventional commercial arrangement and stands as a reflection of India’s rising stature and credibility on the global stage.

Chouhan emphasised that the agreement would not only strengthen the Indian economy but also provide it with a clear and forward-looking direction. According to him, the deal sends a strong message to the world that India’s policymaking is guided by commitment to national interest rather than compromise. “India moves ahead with confidence. We do not believe in transactional bargaining but in a balanced and positive approach based on dialogue, which is why India is today seen as a reliable and strong global partner,” he said.

The Union Minister underlined that the trade pact exemplifies the principles of diplomacy, development and dignity. He said diplomacy, for India, means putting the nation first, and the agreement firmly safeguards national interests. Development, he added, aligns with the vision of a Viksit Bharat, with the deal laying a strong economic foundation for long-term growth. Dignity, he noted, refers to the dignity of farmers, which has been fully protected and respected in the agreement. All concerns related to Indian agriculture have been addressed, ensuring security for farmers while simultaneously opening new avenues for growth and income enhancement. He said the deal would play a crucial role in expanding global market access for Indian agricultural products, strengthening the pillars of an Atmanirbhar and developed India.

Highlighting the direct benefits for agriculture, Chouhan said several Indian farm products will now enter the US market at zero tariff, while American agricultural products will not enjoy similar concessions in India. He stressed that India’s interests in agriculture and dairy have been fully protected. The United States has reduced tariffs, which earlier went up to 50 per cent on many products, to zero on a wide range of Indian exports, including spices, tea, coffee, coconut and coconut oil, cashew, betel nut, fruits such as mango, banana, guava and pineapple, mushrooms and certain grains. He pointed out that India’s agricultural exports stood at USD 4.45 billion in 2024–25, with spice exports registering an 88 per cent increase. With this agreement, Indian spices are expected to gain significant access to a large and high-value US market.

The Minister noted that India already commands a strong position in the global spices trade, exporting to nearly 200 destinations worldwide. The new agreement is expected to further accelerate exports of spices and other agricultural products, while ensuring that the domestic market remains fully protected. Any foreign agricultural product entering India will continue to attract tariffs, he said, adding that this balance is the core strength of the deal.

Chouhan categorically stated that all sensitive agricultural items have been excluded from the agreement and no product that could harm Indian farmers has been included. He said no tariff concessions have been granted on key commodities such as soybean, corn, rice, wheat, sugar, coarse grains, poultry, dairy products, oilseeds, pulses, ethanol and tobacco. Major grains, fruits and dairy products have been completely kept out of the agreement, ensuring that Indian farmers face no threat from imports. He also clarified that a wide range of American agricultural and dairy products, including wheat, rice, millet, vegetables, fruits and all forms of dairy products, will not get entry into the Indian market. Similarly, India will not import spices and spice powders from the US, reinforcing complete security for Indian farmers and domestic producers.

Speaking on broader economic impact, the Union Minister said the agreement would create new opportunities for farmers, women and youth. He highlighted that tariff reductions in sectors such as textiles would enhance India’s competitiveness, providing a boost to exports and directly benefiting cotton farmers. He said new business opportunities would also emerge for gems and jewellery, auto components, engineering goods and MSMEs. The agreement, he added, would bring global recognition to the work of women-led self-help groups, improving livelihoods and encouraging entrepreneurship.

Chouhan noted that under the leadership of Prime Minister Narendra Modi, India has completed nine free trade agreements so far, covering 27 countries, with several more under negotiation. He said these agreements would generate widespread benefits for the economy, farmers, workers, exporters and manufacturers, and help realise the vision of a developed India by 2047. Calling the India–US trade deal a milestone in the journey towards an Atmanirbhar and Viksit Bharat, he expressed his gratitude to the Prime Minister for his leadership and vision.