India–US Trade Deal Sparks Debate Over Zero Tariffs On Farm Goods
The India–US trade talks have entered a decisive stage after US Trade Representative Jamieson Greer said New Delhi could eliminate tariffs on a ‘vast array’ of American agricultural products. His remarks have sparked political debate in India, with the government under pressure to clarify how far it will open its farm sector.
What Did the US Say About Zero Tariffs?
Greer told reporters that the proposed agreement would bring India’s tariffs down to zero on a wide range of US agricultural and manufactured goods. He named products such as tree nuts, fruits, vegetables, wine, and spirits as categories likely to benefit.
According to him, the deal would dramatically improve market access for American exporters and mark a sharp break from India’s traditionally high tariff regime.
From the US perspective, even partial liberalisation of India’s farm market counts as a major gain. American officials have long argued that India’s import duties restrict trade and distort prices.
Greer framed the proposed cuts as part of a broader reset that would also see India drop industrial tariffs from an average of around 13–14% to zero.
Which Farm Sectors Will India Protect?
Indian negotiators have pushed back against the suggestion of blanket liberalisation. Officials familiar with the talks say India will retain protections for sensitive agricultural sectors that affect farmer livelihoods and food security.
Staples such as rice, dairy products, and sugar remain politically untouchable and are unlikely to fall under a zero-tariff regime. This approach reflects India’s past trade strategy.
New Delhi has resisted opening agriculture in most free trade agreements, arguing that millions of small farmers cannot compete with heavily subsidised producers in developed economies.
The current negotiations appear to follow that template: limited access for niche or non-essential items, while core crops stay shielded.
Why Does The Deal Still Matter Politically?
The ‘zero tariff’ claim has triggered opposition criticism, especially from farm-dependent states. Critics warn that cheaper imports could depress local prices if safeguards fail. The government has responded by stressing that negotiations continue and no final tariff schedule exists yet.
Beyond agriculture, the deal carries wider economic and strategic weight. The US plans to cut duties on Indian exports, which could help sectors such as textiles and engineering goods. India has also signalled higher purchases of US energy, aircraft, and defence equipment, underscoring the geopolitical angle.
For now, the headline promise of zero tariffs masks unresolved details. Until negotiators publish product lists and timelines, the real impact on Indian agriculture will remain an open and politically charged question.