New Delhi: The government on Tuesday said that India’s sensitive agriculture and dairy sectors have been fully protected under the newly announced India–US trade deal, with no compromise on farmers’ interests. Union Commerce and Industry Minister Piyush Goyal said the complete technical framework of the agreement would be made public shortly through a joint bilateral statement once formal processes are concluded.
Calling the pact “the best deal in the neighbourhood and among all Indian competitors”, Goyal said the United States has sharply reduced reciprocal tariffs on Indian goods from 50 per cent to 18 per cent. He stressed that India now enjoys a more favourable tariff position than competing economies such as Indonesia, Vietnam, Bangladesh and China, giving Indian exporters a clear advantage in global markets.
The minister rejected criticism from the Congress, which questioned the manner in which US President Donald Trump announced the deal ahead of Prime Minister Narendra Modi. Goyal said tariff reductions were naturally communicated first by the country that imposed them and accused the Opposition of double standards for questioning a move they had long demanded. He also hit out at Leader of Opposition Rahul Gandhi, saying national interest lay at the core of the agreement.
Goyal said the deal would significantly boost labour-intensive and export-oriented sectors including textiles, apparel, leather, footwear, gems and jewellery, plastics, machinery, aircraft components and marine products. He added that Indian MSMEs and small manufacturers would gain improved access to the US market, leading to higher exports of engineering goods and auto components and generating substantial employment opportunities.
Highlighting the broader strategic impact, the minister said the pact is expected to attract advanced technologies, promote collaboration in semiconductors and artificial intelligence, and strengthen India’s role in global supply chains. He said the agreement would help integrate India more deeply into global value chains and enhance manufacturing competitiveness.
On claims by President Trump that India would purchase $500 billion worth of American goods, official sources clarified that this figure is spread over five years and aligns with the joint ambition of both countries to raise annual bilateral trade to $500 billion. There was no official confirmation on Trump’s assertion that India would halt crude oil imports from Russia, though Indian officials indicated that refineries remain free to decide their sourcing strategies.
An SBI Research report released on Tuesday said the deal could help India save up to $3 billion annually on fuel imports by diversifying crude oil sourcing, calling energy savings one of the key gains from the agreement.
