India is prepared to step up purchases of American defence equipment, energy supplies and aviation products as part of the ongoing India–US trade deal discussions, but New Delhi has made it clear that agricultural goods from the US will not be given entry under the agreement.

According to government sources, India and the US are currently negotiating a broad trade package. While there has been progress in several areas, the Indian side has drawn a firm line on agriculture, saying that allowing American farm products into the domestic market would hurt millions of Indian farmers.

India wants the US to withdraw the extra 25% tariff so that Indian goods can regain better access to the American market. After this, India may push for a further reduction in the remaining 25% tariff in the next stage of negotiations.

According to Informist news agency, government officials said that during the trade discussions, India has kept the agriculture sector aside and does not want to negotiate on it.

In simple terms, India has refused to allow American agricultural products into the Indian market. India believes that permitting US farm goods would increase competitive pressure on domestic farmers and reduce their income. For this reason, agriculture has not been included in the trade deal.