India opens market for USA dairy amidst trade agreement developments

INDIA – India and the United States of America have neared a trade agreement that includes limited openings for USA dairy products.

The United States and India are close to announcing a major trade agreement. Officials expect the announcement before the end of November.

The two countries made progress after Washington agreed to withdraw its penalty tariffs. These tariffs had strained relations for months. The shift came after India reduced its imports of Russian oil, which had triggered part of the penalty.

Negotiators are now discussing new tariff rates on industrial and agricultural goods. They are considering two ranges: 12–15% or 15–19%. Most product lists for duty-free or reduced-duty access are ready. Both sides want a fair balance that supports trade without hurting domestic industries.

India has agreed to allow duty-free imports of US soybeans and corn. The country plans to use imported corn to boost ethanol production, which supports its national biofuel goals.

India will also buy non-genetically modified soyabean directly from US suppliers. The United States is not pushing for large soybean exports at the moment, as China is already buying heavily from USA producers.

Dairy trade remained one of the most challenging issues in the talks. India has now agreed to allow limited imports of select dairy products.

These imports will comply with strict safety and regulatory requirements. Liquid milk will not be included in the agreement. India took a cautious approach because millions of small farmers depend on dairy for income.

USA President Donald Trump said the deal will strengthen economic and security ties between the two nations.

He noted that it will also support US energy exports and encourage new investments. For India, the agreement offers access to reliable feedstock and new trade stability. For the United States, it opens fresh opportunities in agriculture and reduces long-standing tariff disputes.

If finalised as expected, the deal will reshape agricultural trade between the two countries.

It will create new channels for dairy, soybean and corn. It will also reduce uncertainty for exporters and farmers. Both nations see this agreement as a step toward a stronger and more predictable partnership.

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