November 18, 2025

 

India to open market to duty-free soybean, corn in upcoming trade deal with US

 

 

The United States and India are set to announce a bilateral trade agreement by the end of November after Washington agrees to withdraw penalty tariffs, Deccan Chronicle reported on November 16, citing sources involved in the negotiations.

 

India will open its market to duty-free imports of soybean, corn, and certain dairy products, while the two sides are finalising reciprocal tariff rates on industrial and agricultural goods, the report stated.

 

"The deal is expected to be announced before the end of November," officials privy to the negotiations said. "The Russian oil issue is well-settled, and US President Donald Trump also has acknowledged it. So, the penalty tariffs will be withdrawn."

 

India and the US have held high-level talks aimed at resolving trade frictions that escalated after the US imposed 50% tariffs on selected Indian exports. Out of 50% tariff, 25% is for buying Russian oil. However, India's imports of Russian oil have already declined in October, with a sharp fall expected from November.

 

The focus now is on finalising reciprocal tariffs, the report said. Two ranges are being discussed: between 12% and 15%, or between 15% and 19%.

 

According to the report, both sides have settled most issues related to product lists eligible for duty-free or reduced-duty imports. India's key concession involves allowing the import of US soybean and corn, subject to regulatory clearances. India plans to use the corn imported from the US for the production of ethanol.

 

India has reportedly agreed to buy soybean, which is classified as non-genetically modified, directly from the industry. However, the US is not pushing much on large purchases of soybean as China is currently buying it from the US.

 

On dairy products, India has agreed to limited imports under strict safeguards. "Based on certain conditions, it may allow a few dairy products, but not liquid milk," an official was quoted as saying.

 

Agricultural imports, particularly of dairy, were among the most contentious issues during negotiations.

 

- Business Today