India has moved to clarify its position on agricultural imports amid growing speculation that it may have offered market access concessions in return for a reduction in tariffs. A government official said the approach remains cautious and firmly aligned with the country’s long-standing trade policy framework.
According to the official, cited by ANI, India continues to follow its established Free Trade Agreement (FTA) template, which prioritises protection for sensitive farm products. This strategy ensures that domestic farmers are shielded from sudden import pressures while allowing selective liberalisation where risks are minimal.
Only agricultural items considered least sensitive will be granted immediate duty-free access. These are products that India already offers to most of its FTA partners, including under the trade agreement with the United Kingdom.
The official also highlighted India’s strong position in agricultural trade with the United States. India currently records a surplus of around USD 1.3 billion in this sector, underlining the competitiveness of its farm exports.
India exports agricultural goods worth about USD 3.4 billion to the US each year, while imports from the American market stand at roughly USD 2.1 billion. This trade balance, the official said, reflects the strength of Indian agriculture in meeting global demand without compromising domestic interests.
"This deal will only strengthen our agricultural export position while protecting our sensitive sectors," he said.
The official said India has successfully negotiated substantial market access for employment-intensive export sectors that were previously burdened by steep 50 per cent tariffs. He said the move would provide an edge to New Delhi over key competitors, including Vietnam, Indonesia, China, Malaysia, Thailand, Bangladesh and Cambodia.
PM Modi protecting interests of people in agriculture, dairy sectors
Commerce Minister Piyush Goel also addressed these concerns, saying PM Modi has worked proactively to protect the interests of people involved in dairy and agriculture sectors.
"PM Modi has always championed both the agriculture and dairy sectors, safeguarding their interests and working tirelessly to ensure a bright future and ample opportunities for the people in this sector. I am pleased that the entire country understands and appreciates this, and it resonates deeply with them. The sensitive factors of India's economy, particularly agriculture and dairy, have been protected,” he said in a video address.
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