New Delhi: Indian Finance Minister Nirmala Sitharaman has reaffirmed that agriculture and dairy remain critical sticking points in India’s ongoing trade negotiations with the United States. Speaking to the Financial Express, she emphasized that these sectors are "big red lines" for New Delhi, where negotiators are treading with significant caution.
India and the U.S. are currently working toward a potential trade agreement, with a deadline of July 9 set by U.S. President Donald Trump for implementing reciprocal tariffs if no deal is reached.
While Sitharaman expressed hope for a comprehensive and beneficial agreement, she made it clear that India’s sensitivities around its agricultural and dairy sectors are non-negotiable. “Of course, I would welcome a strong and well-balanced deal. An early resolution would be in India’s interest,” she said.
The United States is pressing for broader access to India’s markets, particularly for agricultural products, ethanol, dairy, alcoholic drinks, vehicles, pharmaceuticals, and medical equipment. U.S. officials argue this is necessary to address the existing trade imbalance.
On the Indian side, concerns are rising among auto manufacturers, pharmaceutical companies, and small businesses, many of which worry about being undercut by large American competitors. Sitharaman assured that these concerns would be addressed through comprehensive industry consultations as negotiations progress.
