Farmers Hail India-US Trade Deal as Boost for Livelihoods and Rural Economy

IANS spoke to farmers in Gujarat, Uttar Pradesh and Rajasthan, who expressed optimism over the impact of the trade framework on Indian agriculture, exports and local produce.

In Jamnagar, Gujarat, a farmer said, "I believe the recently signed trade deal will be very beneficial for farmers. In Saurashtra, most spices like cumin and carom seeds are produced. Considering the trade deal, it will provide significant advantages to farmers."

In Farrukhabad, Uttar Pradesh, Bharatiya Kisan Union (Mahatma Tikait) National Vice President Prabhakar Mishra supported the government's move and said the decision was taken in the interest of Indian farmers.

"We will say that whatever foreign companies there are, whether in dairy or other sectors, Prime Minister Modi's decision and the government's decision are absolutely correct. Whatever belongs to India will operate from Indian platforms, benefiting Indian farmers. This decision of our government and our Prime Minister is commendable," he said.

Another farmer in Farrukhabad said the agreement would help improve village economies.

"The government's actions will strengthen our farmers' livelihoods and improve conditions in the villages," he said.

In Chomu, Rajasthan, farmers said the agreement reflected the government's firm stand on trade and tariffs. A farmer said, "Trump had imposed a 50 per cent tariff on India, but PM Modi did not bow down to it. In the recent agreement, full consideration was given to the interests of farmers."

Another farmer in Chomu said, "In the trade deal between the United States and India, the Modi government ensured that the interests of Indian farmers were fully protected."

The interim trade framework was announced amid US President Donald Trump's push for reciprocal trade and Prime Minister Narendra Modi's emphasis on the 'Make in India' initiative. The agreement follows months of negotiations, which gained momentum after the US imposed higher tariffs on Indian goods linked to India's Russian oil purchases.

Under the deal, India has committed to eliminating or reducing tariffs on several US industrial and agricultural products, while the US will lower its tariffs on Indian exports from 50 per cent to 18 per cent, effective February 7, 2026.

India has also pledged to procure up to $500 billion in US goods over the next five years, including energy, technology and agricultural items.

Agriculture, considered a sensitive sector for both countries, features prominently in the framework. The US, a major agricultural exporter, has been seeking to address its trade deficit with India, which stood at $1.3 billion in 2024.

In India, farming continues to support nearly half of the country's population, even though it contributes around 16 per cent to the GDP. To protect smallholders, India has reportedly ring-fenced key products while allowing market access in select segments.

As part of the interim deal, India will eliminate or reduce tariffs on US food and agricultural products, including dried distillers' grains, red sorghum for animal feed, tree nuts such as almonds, walnuts and pistachios, fresh and processed fruits including apples and pears, soybean oil, wine and spirits.

- IANS