'Step Towards Self-Reliant India': Why Agri, Dairy Protection Is The Real Win In Trade Deal With US

Last Updated:February 07, 2026, 08:45 IST

Dairy & agriculture have historically been red lines for India in trade talks, particularly with countries like US, where large-scale, highly subsidised agri-businesses dominate

As India and the United States moved a step closer in their partnership on Saturday with the finalisation of an interim trade agreement, what stood out was one of the most politically and economically sensitive achievements: the deliberate protection of India’s agriculture and dairy sectors.

Taking to X after the framework was announced, commerce minister Piyush Goyal said: “In the India-US trade agreement, dairy, fruits, vegetables, spices, and other grains have been protected. This will safeguard the interests of domestic farmers, strengthen local agriculture through preferential access to such a large market, and mark another powerful step forward in the direction of a self-reliant India."

The above-mentioned sectors are not just commercial domains, but the backbone of rural livelihoods, supporting millions of small and marginal farmers across the country.

Under the interim framework, India has ring-fenced dairy, fruits, vegetables, spices, and key grains from broad tariff concessions. This is significant because dairy and agriculture have historically been red lines for India in trade negotiations, particularly with countries like the US, where large-scale, highly subsidised agri-businesses dominate. Opening these sectors indiscriminately could have exposed Indian farmers, many of whom operate at subsistence or near-subsistence levels, to severe price shocks and unfair competition.

There is also the political angle to the row. Agriculture and dairy are politically sensitive in India, with farmers’ interests being a major political concern. Any large liberalisation that threatens their incomes can lead to strong public backlash and social unrest. This was a key reason India withdrew from the Regional Comprehensive Economic Partnership (RCEP) in 2019 as the government felt cheaper imports could hurt domestic crops and dairy.

Government sources had earlier clarified that India has not diluted its long-standing stance on agriculture and dairy. Instead of market opening through imports, the framework focuses on preferential access for Indian produce to the US market, allowing domestic farmers and agri-exporters to benefit from demand in one of the world’s largest consumer markets without undermining local production. This aligns with the government’s broader strategy of export-led growth while preserving domestic food security.

The move is also “much-needed" in the current global context. With supply chains under stress, geopolitical uncertainty rising, and protectionism increasing worldwide, India securing its sensitive sectors while still advancing a major trade partnership reflects a calibrated and pragmatic approach. Rather than rushing into sweeping concessions, the interim deal creates breathing room—building trust with the US while keeping India’s core interests intact.

By protecting dairy and agriculture, the agreement reinforces the idea of Atmanirbhar Bharat (self-reliant India) in a practical sense: strengthening domestic capacity first, then integrating globally on India’s own terms. At the same time, the framework ensures that Indian farmers and agri-based industries are not left out of global trade opportunities but are integrated in a way that is gradual, targeted, and sustainable.

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