
US & EU Deals Create Massive Market Opportunity While Protecting Key Farm Sectors.
New trade agreements with both the United States and the European Union have opened up a substantial USD 400 billion export opportunity for India’s agriculture sector, according to a senior government official. These pacts expand access to two of the world’s largest consumer markets, potentially reshaping global agricultural trade flows and positioning India as a major supply partner.
Current agricultural export figures reflect significant room for growth: India’s shipments to the US are about USD 2.8 billion, while imports of agri goods from the US stand at around USD 1.5 billion. Overall, India’s total agricultural trade balance is positive, with exports valued near USD 51–52 billion against imports worth approximately USD 35 billion — trends that government sources say are on an upward trajectory.
While the trade deals unlock large new market access, sensitive domestic industries — including dairy, poultry and cereals — have been explicitly excluded from duty concessions as part of the negotiation framework. This move reflects policymakers’ efforts to shield farmers and rural livelihoods from sudden competitive shocks, a key concern voiced by opposition parties and agricultural stakeholders.
Industry analysts in the international dairy and agribusiness sectors will note that this strategy aligns with broader protection measures seen in similar agreements, where tariff exclusions are used to preserve domestic production capacity while still encouraging export expansion. The balance between market opening and agricultural safeguarding will be critical to maintaining export momentum without undermining local producers.
The expanded access to EU markets, combined with the US opportunity, underscores a strategic pivot in India’s global agricultural outreach, aiming to leverage its production base, diversify export destinations, and integrate more deeply into global food supply chains. For dairy and other agrifood sectors eyeing growth beyond traditional markets, the implications could be substantial.
Source: Rediff Money Desk – https://money.rediff.com/news/market/india-agri-sector-usd-400-billion-trade-opportunity/42129820260216
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