365telugu.com online news,NEW DELHI,February 7th,2026: Following the formalization of a landmark trade framework between India and the United States, Commerce Minister Piyush Goyal has moved to reassure the nation’s agricultural heartland, asserting that domestic farmers and dairy producers remain “fully protected” under the new terms.
The deal, which aims to reshape the economic corridor between the two giants, balances aggressive tariff cuts in technology and manufacturing with rigid barriers around India’s sensitive primary industries.
The “No-Go” Zone: Agriculture and Dairy
In a move to safeguard rural livelihoods, New Delhi has successfully kept its most sensitive food sectors off the negotiating table. The government confirmed that zero tariff concessions were granted for staple crops, including wheat, rice, maize, and oilseeds.
The dairy industry—a massive source of rural employment—is also shielded entirely. Imports of US milk, cheese, butter, and ghee will face the same high duties as before, preventing cheaper American dairy products from flooding the local market. Similarly, India’s iconic spice and tea industries remain under full protection.
Winners: Manufacturing and High-Tech
While agriculture remains closed, the gates have swung open for industrial growth. India is slashing duties on:
Technology & AI: Heavy reductions on GPUs, AI hardware, and data-center equipment are expected to lower the cost of digital infrastructure.
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Manufacturing: Tariffs on machinery, electrical components, and vehicles are being phased down to boost India’s “Make in India” initiatives.
In exchange, Washington has agreed to a uniform 18% tariff on a vast array of Indian exports. This is a significant win for Indian pharmaceutical companies, textile manufacturers, and gemstone exporters, who previously faced much higher or fluctuating duty structures.
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The “Spirit” of the Deal: Whisky and Wine
One of the most visible changes for urban consumers will be in the alcohol sector. Because imported spirits do not compete directly with the livelihoods of Indian farmers, New Delhi has included them in the liberalization list.
Industry analysts expect duties on premium spirits—currently as high as 150%—to drop to between 30% and 40%. This could see the retail price of a mid-range Scotch or American Bourbon drop by nearly 40% in major cities like Mumbai and Delhi. While a boon for consumers, it poses a new challenge for domestic “craft” spirit brands, which will now face stiffer price competition from global giants.
The agreement is being viewed as a strategic pivot. By lowering costs for industrial inputs while protecting the agrarian base, India aims to modernize its economy without triggering the social unrest often associated with trade liberalization.
“This deal doesn’t just provide market access,” Minister Goyal stated via social media. “It gives a massive boost to our digital infrastructure while keeping our farmers’ interests front and center.”