India Safeguards Agricultural Interests in US Trade Agreement, Says Piyush Goyal
Piyush Goyal Addresses Parliament on Trade Deal
On Wednesday, Union Commerce Minister Piyush Goyal reassured parliament members that India has successfully protected its agricultural and dairy interests in the trade agreement with the United States. Under this agreement, tariffs on Indian goods have been reduced to 18%, sparking political controversy within the country. The opposition has expressed concerns over U.S. President Donald Trump's assertion that India might eliminate tariffs on certain American products and could purchase $500 billion worth of energy, technology, agriculture, coal, and other goods from the U.S.
Concerns Over Agricultural Sector Addressed
In response to rising concerns regarding the agricultural sector, Goyal informed the Lok Sabha that both nations engaged in discussions for a year to ensure the protection of sensitive areas. He highlighted that during this time, there was a 'standing order' from the top leadership that the Indian Army should not fire without explicit permission, even if the Chinese army intruded into Indian territory.
Ongoing Discussions for a Balanced Trade Agreement
Goyal mentioned that since Prime Minister Narendra Modi's visit to the U.S. in February 2025, both countries have been discussing a balanced and mutually beneficial trade agreement. Over the past year, negotiators from both sides have engaged in talks at various levels. It is evident that both nations aim for the best outcomes while considering their respective economies and protecting sensitive economic sectors. India has successfully safeguarded its interests in agriculture and dairy, while the U.S. also had its sensitive areas.
Benefits for Indian Exporters
He further stated that this agreement would be advantageous for Indian exporters. Goyal emphasized that both countries would soon finalize the paperwork related to the agreement. He noted that on February 2, Prime Minister Modi and President Trump discussed several issues over the phone, leading to the announcement of the 18% tariff reduction on Indian goods. He clarified that this tariff is lower than those imposed by the U.S. on many competing countries, which would aid Indian goods in the American market. The agreement is expected to provide numerous benefits to Indian exporters while considering the sensitivity of the agricultural sector. Additionally, it will support small and medium enterprises (SMEs) and skill development.
A Step Towards Stronger India-U.S. Relations
The minister stated that this agreement would help realize the global vision of 'Make in India,' 'Design in India,' and 'Innovate in India.' It represents a significant step for India-U.S. relations and the vision for a developed India by 2047, showcasing the strong ties between the two largest democracies, which are natural partners. Goyal informed the parliament that both parties would soon complete the necessary paperwork to capitalize on the agreement. Furthermore, he assured that the government would diversify energy resources and ensure energy security for the public.