India currently maintains some of the world’s highest agricultural import tariffs, including steep duties on alcoholic beverages, fruits, and vegetables. Moving toward zero-tariff access could allow subsidised US commodities such as corn, soybean oil, and dairy products to enter the Indian market at competitive prices, posing a major challenge for small-scale Indian farmers already operating on tight margins.

US officials have framed the agreement as a strategic gain for American agriculture, highlighting expanded export opportunities into India’s vast consumer base. The deal is also viewed as a pathway to reducing the US agricultural trade deficit with India, estimated at $1.3 billion in 2024, while boosting rural incomes in the United States through higher overseas sales.

The agreement’s purchasing commitments reportedly span agriculture, energy, and technology, with increased imports of US almonds, walnuts, and apples expected to directly affect growers in Indian regions with similar climates. At the same time, long-standing US ambitions to access India’s dairy and poultry markets could intensify pressure on domestic producers if certification or cultural restrictions are eased.