New Delhi, Feb. 7 -- As India and the US formalised a new trade agreement, both sides foresee strong potential for expansion in agricultural trade, despite long-standing differences over market access and tariffs.

As per the joint statement, Indian exports to the United States will now be subject to an 18% tariff, a steep reduction from the earlier 50%, which had comprised a 25% reciprocal tariff and an additional 25% punitive duty linked to India's procurement of Russian crude oil.

In return, India will cut or remove import duties on all US industrial goods and on several US food and agricultural products. These include dried distillers' grains (DDGs), red sorghum used as animal feed, tree nuts, fresh and processed fruits, soybean oil,...