India-US Trade Deal Boosts Dairy Export Prospects

The recent India-US trade deal is seen as a positive development for Indian exporters, especially in the value-added dairy sector, providing greater clarity on tariffs and fostering a more predictable trade environment. This could enhance the broader dairy ecosystem and facilitate international market engagement.

The India-US trade deal is being hailed as a constructive policy development for Indian exporters, particularly those in the value-added dairy segment, according to K Rathnam, CEO of Milky Mist Dairy Food Ltd. Announced on Monday, the agreement promises to reduce the reciprocal tariffs on Indian goods imposed by the US from 25 percent to 18 percent.

Rathnam emphasized that clearer tariff structures help create a more predictable trade environment for products like cheese, ghee, and specialized dairy ingredients. "At Milky Mist, we view such policy measures as supportive of structured and transparent bilateral trade," he stated, highlighting the deal's potential to strengthen the broader dairy ecosystem.

This agreement is particularly significant following the US's decision to impose steep 50 percent tariffs on Indian goods entering American markets starting August 27, 2025. The new deal offers a more balanced approach, fostering improved engagement with international markets and benefiting farmers, processors, and other stakeholders in the dairy industry.

(With inputs from agencies.)