India and the United States are preparing to sign an interim trade agreement in March, with implementation expected as early as April 2026. The announcement was made by India’s Commerce Minister Piyush Goyal, who emphasized that the deal will strengthen bilateral trade, particularly in agricultural products, and deepen economic cooperation between the two countries.
Agriculture remains a central component of the agreement. In 2024, the United States exported $2.25 billion worth of agricultural products to India, led by tree nuts, including almonds valued at $1.12 billion. At the same time, India exported $6.2 billion in agricultural goods to the US market, including seafood, spices, and other high-value products.
One of the key outcomes of the negotiations is a concession by the United States on pulses. The revised version of the agreement removed specific provisions that would have reduced tariffs on certain pulse imports into India, which are considered highly sensitive for Indian farmers. This allows India to maintain protections for its domestic pulse producers and avoid a sharp increase in imports of this strategically important crop group.
At the same time, the agreement includes gradual tariff reductions on other agricultural products, such as dried distillers’ grains (DDGS), red sorghum, tree nuts, fruits, and soybean oil. India plans to implement these tariff reductions over a period of up to 10 years, ensuring a balanced approach between opening its market and protecting domestic agriculture.
According to analysts from the USDA, the agreement is expected to support agricultural trade growth while safeguarding India’s domestic sector. Experts note that the compromise on pulses was a critical factor in reaching the deal and could pave the way for expanded agricultural cooperation and more stable trade relations between the two countries.
