US farmers gain greater access to India’s vast market under new trade deal

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TL;DR

A newly announced India-United States trade deal cuts reciprocal tariffs on Indian goods and is expected to increase US agricultural exports to India, potentially reducing the agricultural trade deficit and strengthening bilateral economic ties.

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A significant India-United States trade deal announced on 3 February 2026 is expected to expand exports of American farm products to India’s market, according to US Secretary of Agriculture Brooke Rollins.

Under the agreement, reciprocal tariffs on Indian goods will be reduced from 25 % to 18 % effective immediately, easing trade frictions and lowering costs for both sides.
Rollins said boosting US agricultural exports to India’s large and growing consumer market will raise prices for American farmers and help reduce the agricultural trade deficit, which stood at about $1.3 billion in 2024.

The trade deal follows months of tariff escalation and negotiation, during which steep levies — in some cases up to 50 % — had previously dampened bilateral trade.

US President Donald Trump and Indian Prime Minister Narendra Modi confirmed the pact on a call, with both leaders framing it as a step to bolster collaboration and mutual economic benefit. Modi welcomed the agreement as a development that would benefit Indian exporters and strengthen ties between the world’s two largest democracies.

In addition to tariff changes, India agreed to reduce other barriers to US goods and to purchase significant volumes of American energy, technology, and agricultural products, totaling potentially over $500 billion in trade commitments.

Observers say the pact could also improve investor confidence and signal a broader reset in India’s trade relations with major partners, even as other bilateral negotiations continue.