NEW DELHI: India's negotiators have reached a significant milestone in trade relations with the United States by announcing a framework for an interim trade agreement focused on various agricultural goods. Ashok Gulati, a Distinguished Professor at the Indian Council for Research on International Economic Relations (ICRIER), emphasized the careful and balanced approach taken in the negotiations. "The Indian negotiators have played it pretty safe, and it's a very balanced deal," Gulati remarked during a conversation with Business Today.

Under the newly established agreement, India plans to eliminate or reduce tariffs on a range of US industrial goods and agricultural products, which includes dried distillers' grains, tree nuts, and soybean oil. Gulati noted that this interim deal outlines a limited yet structured opportunity for US agricultural produce. He highlighted distillers’ dried grains (DDGS) as a critical component, which will primarily be used in poultry feed that could enhance India's poultry and dairy sectors significantly.

However, the discussion on highly sensitive topics like the direct import of genetically modified crops and dairy has been notably absent from the agreement. Gulati pointed out that these issues were intentionally avoided during negotiations. "We have not allowed direct import of genetically modified crops from that angle," he stated. He underscored the significance of addressing non-tariff barriers in the agricultural sector, especially concerning dairy products, which could raise debates within Indian farming communities.

The tariffs on tree nuts, which are favorable to Indian consumers, will likely remain modest due to the limited domestic production. “Almost 90% of the almonds that we consume in the country come from the US,” Gulati explained. He concluded by referencing the historical advancements in biotechnology and cautioned that ideology should not hinder scientific progress in agriculture. "If we don't pay heed to that, we'll be left behind," he declared, clearly indicating the potential challenges ahead for Indian agriculture in the face of evolving global standards.