Indo-US Trade: Global integration meets rural anxiety

The Indo-US trade agreement sparks debate over benefits for some farmers versus concerns for domestic producers amid global integration.

While the 2026 Indo-US Interim Trade Agreement is framed as a strategic balance between global integration and rural protection, it has also sparked intense criticism over fears that domestic producers may lose their competitive edge and market share on their own home soil. 

For the Indian government, the deal is a landmark victory that secures a 0%–18% tariff window into the $30-trillion American market, a significant de-escalation from the 50% punitive duties that had crippled exports in late 2025. 

As the official agreement between New Delhi and Washington is finalised, it is becoming clear that the deal will help some Indian farmers while hurting others, triggering both hope in the spice gardens of the south and anxiety in the grain belts of the north. 

While, on the winning side, according to traders and farmers, the deal provides an unprecedented ‘green channel’ for Indian horticultural and high-value products. “Small-scale farmers of spices, tea, coffee, and cashews, along with growers of fresh mangoes, guavas, and avocados, will now enjoy zero-tariff access to American consumers,” they noted. 

S. Rethinavelu, founder and president, Agri and All Trade Chamber, said, “This shift not only boosts farmer realisations but also gives India a sharp competitive edge over regional rivals like Vietnam and China. Furthermore, the Indian poultry and livestock sectors are set to benefit from the opening of a specific window for animal feed.”