Under the new deal, New Delhi has agreed to eliminate or reduce tariffs on a wide set of U.S. industrial goods and food products—from soybean oil to fresh and processed fruits, tree nuts, wine and spirits—though the official text did not list every item covered. This tariff realignment is aimed at deepening two-way trade and could help integrate global value chains for dairy feed and processed foods.

While the framework signals a willingness to open up, India has also stressed protection for sensitive farm sectors, including core staples like dairy, cereals and other commodities where domestic production or smallholder livelihoods are a priority. Government officials and subsequent reporting make clear that India has sought to shield dairy and key agricultural segments from broad tariff concessions to avoid exposure to price-competitive imports that could challenge local producers.

The broader pact connects with a push to rebalance the bilateral trade relationship, including tariff cuts by the U.S. on Indian exports and mutual efforts to resolve disputes over punitive duties. India’s import pledge under the framework also touches on other sectors beyond agriculture, but the core narrative for producers hinges on how tariff and non-tariff adjustments affect feed, dairy products, and agricultural inputs.