Commerce Minister Piyush Goyal, during a media interaction in New Delhi on the occasion of the US trade delegation’s visit to India, refused to open the agriculture sector to American companies.
SNPNEWS.IN News, New Delhi (Gurmail Kamboj): US President Donald Trump has been enthusiastic about strengthening trade relations with India from the early days of his second term. In February 2025, efforts began for a Bilateral Trade Agreement (BTA) to increase bilateral trade to $500 billion, following an agreement between Trump and Modi. India has clearly refused to open the agriculture sector to American companies.
The Indian government’s argument is that opening the agriculture sector to US companies could make the economic situation of the country’s farmers extremely worrisome, as out of India’s 14.64 crore farmers, medium and small farmers constitute approximately 86%, who own only 47% of the total land area. Most of these (approximately 96%) own less than 10 acres. They sustain their families through agriculture along with allied activities (dairy, vegetable farming, poultry, etc.).
If the agriculture sector is opened to American companies—which operate large-scale farming and dairy operations on thousands of acres—95% of the country’s farmers would be unable to compete. This is because American agricultural products receive heavy subsidies, allowing them to be sold at cheaper rates. The US wants India’s large market (where millions depend on agriculture) to open up for them. Small farmers would be unable to match the production and price control of these companies, which could push crores of people into unemployment in one blow.
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A US delegation visited India (New Delhi) from December 9-12 for discussions on the Bilateral Trade Agreement (BTA). The delegation was led by Deputy US Trade Representative (USTR) Rick Switzer. Rick Switzer held meetings with Indian Commerce Secretary Rajesh Agarwal, Foreign Secretary Vikram Misri, and other officials. The talks between the US delegates and Indian officials were held at an informal level, where discussions took place on agriculture, dairy products, tariffs, and other trade issues.
Commerce Minister Piyush Goyal stated that the talks were positive, and India maintained its firm (long-standing) stance on not opening the agriculture sector in front of the US officials. The US official described India’s offer as “good” while saying that hurdles still remain. The talks will continue, and both sides are ready to move forward on an agreement without harming each other’s economic and social interests.
Main demands of the US in the India-US trade talks (Bilateral Trade Agreement – BTA):
● India should reduce or eliminate tariffs (import duties) on its agricultural products (such as corn, soybeans, sugarcane, almonds, apples, pulses, grapes, chocolate, cookies, etc.) and dairy products.
● Easy import permission for American GM corn, soy, and other crops in India.
● Removal of non-tariff barriers (such as certification or restrictions related to religious sensitivities) for dairy (milk and products) and meat.
● Market access for ethanol (biofuel), alfalfa hay, poultry, etc.
● Reduction of duties on automobiles, pharmaceuticals, medical devices, wines, petrochemicals, etc.
● Simplification of customs rules, relaxation of restrictions related to data storage, patents, and digital trade.
Initial meetings between India and the US on the (Bilateral Trade Agreement – BTA) issue:
The India-US trade talks (Bilateral Trade Agreement – BTA) started from the Modi-Trump meeting in February 2025, involving approximately 6 rounds with in-person meetings and virtual discussions. In the Modi-Trump joint statement, the initiation of BTA and Terms of Reference were finalized.
On March 4-6, India’s Commerce Minister Piyush Goyal visited Washington, where he held meetings with US Trade Representative (USTR) Jamieson Greer and Commerce Secretary Howard Lutnick on the BTA issue. This was the first major ministerial-level visit that gave political momentum to the talks. Goyal clarified that no compromise would be made on agriculture.
From March 25 to 29, 2025, Brendan Lynch and his team held meetings with officials of the Indian Commerce Ministry. Discussions included market access for agricultural products, but India maintained its firm stance. According to both sides, the talks were positive and encouraging. Both parties expressed commitment to a mutually beneficial agreement, and plans were made for virtual and in-person meetings in the next round.
On April 23-25, 2025, an important round of India-US trade talks (BTA) took place in Washington D.C. Additional Secretary and Chief Negotiator of the Indian Commerce Department, Rajesh Agarwal (who was appointed as the next Commerce Secretary on April 18), led the Indian team. During this meeting, discussions were held on Terms of Reference (ToRs) (which included about 19 chapters), such as tariff reduction, non-tariff barriers, customs facilitation, etc.
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These talks occurred during the US tariff pause (90-day grace period, starting from April 9). Both sides expressed commitment to completing the first tranche by Fall 2025 (September-October). Next in-person meetings were planned from the end of May. India remained firm on its old stand regarding agriculture and dairy matters.
US President Donald Trump increased pressure over India’s crude oil purchases from Russia and the trade deficit. On August 7, a 25% tariff was imposed on Indian products, with a threat to increase it to 50% from August 27. This increased tension in the talks, and the visit was cancelled/postponed.
On September 16, 2025, India-US trade talks resumed after the August tariff tension. The US delegation led by Brendan Lynch (Assistant U.S. Trade Representative for South and Central Asia and Chief Negotiator) held a meeting with Chief Negotiator Rajesh Agarwal (Special Secretary, Commerce Department). After this one-day discussion, tension between the two countries reduced.
On September 22-24, 2025, an Indian delegation led by Piyush Goyal visited the US. They met with US Trade Representative Jamieson Greer and other officials. Discussions covered various aspects of BTA, such as tariff reduction, market access, and non-tariff barriers. Both sides agreed to continue toward quickly completing a mutually beneficial agreement. After these meetings, the talks are ongoing, but issues related to agriculture, dairy, and tariffs remain hurdles.