Union Commerce and Industry Minister Piyush Goyal on Wednesday mounted a strong defence of the India–United States trade agreement in Parliament, asserting that New Delhi had successfully protected its most sensitive sectors particularly agriculture and dairy while securing meaningful gains for Indian exporters and professionals.
Speaking in the Lok Sabha, Goyal said the agreement, finalised after nearly a year of negotiations, strikes a careful balance between trade liberalisation and national interest, countering opposition claims that the deal compromises farmers or domestic industry.
“As the House is aware, negotiations between India and the United States have been underway since Prime Minister Narendra Modi’s visit to the US in February 2025. Throughout this process, India has ensured that its sensitive sectors, especially agriculture and dairy, remain fully safeguarded,” Goyal said.
Year-Long Negotiations, Sectoral Safeguards
The minister said negotiators on both sides engaged in detailed discussions at multiple levels over the past year, recognising that trade agreements inevitably require both countries to protect core interests while seeking mutual benefit.
“After several rounds of deliberations spanning approximately one year, negotiators from both sides have succeeded in finalising key areas of the bilateral trade agreement,” he told the House, adding that the US too had identified sectors it considered sensitive.
Goyal emphasised that India did not concede ground in areas critical to food security, farmer livelihoods, or rural stability longstanding red lines in Indian trade policy.
Tariff Reduction to 18%, Lower Than Competitors
Referring to the recent phone call between Prime Minister Modi and US President Donald Trump on February 2, 2026, Goyal said the US decision to reduce tariffs on Indian goods from 25 per cent to 18 per cent places India in a more competitive position compared to several other exporting nations.
“I would like to emphasise that this tariff is lower than the US tariff imposed on many competitor countries,” he said, calling it a significant win for Indian exporters.
President Trump had announced the tariff cut on his social media platform Truth Social, describing the agreement as a gesture of friendship and respect toward Prime Minister Modi. PM Modi later welcomed the announcement, saying it would benefit India’s 1.4 billion people and deepen cooperation between the world’s two largest democracies.
Boost for ‘Make in India’ and Export Competitiveness
Goyal rejected criticism that the deal undermines domestic manufacturing, saying it complements flagship initiatives such as Make in India, Atmanirbhar Bharat, Viksit Bharat, and Design in India for the World.
He said lower tariffs would improve the price competitiveness of Indian goods in the US market, helping exporters integrate more deeply into global supply chains.
“This agreement will enhance export competitiveness, promote manufacturing, and create new opportunities for Indian businesses, including micro, small, and medium enterprises,” the minister said.
Industry bodies have echoed this view, with exporters pointing to potential gains in sectors such as chemicals, auto components, electronics, textiles, and engineering goods.
Opportunities for Professionals and MSMEs
Beyond goods, the minister highlighted the agreement’s benefits for services and skilled professionals. He said the deal opens up greater opportunities for Indian professionals and service providers in the US market, while also supporting India’s growing services exports.
“The agreement creates new avenues for skilled Indian professionals and MSMEs, strengthening India’s position in global value chains,” Goyal said.
Energy Security Remains a Priority
Addressing concerns around energy trade, Goyal stressed that India’s energy security remains a top government priority and that trade discussions with the US were conducted with this principle firmly in mind.
“Energy security for Indians is the top priority of the government,” he said, adding that the agreement balances trade expansion with national requirements.
Political Pushback Continues
The opposition Congress has criticised the manner in which the trade deal was announced, arguing that such a significant economic decision should have been first disclosed by the Indian government and debated in Parliament.
Congress leaders have also sought clarity on Trump’s claims regarding zero tariff and non-tariff barriers, agricultural market access, and India’s future oil purchases.
Goyal countered that the government has been transparent and that Parliament is being kept informed as details are finalised.
Not the Final Word
The minister noted that the current agreement is not the final form of India–US trade engagement, suggesting that further discussions will continue to refine timelines, implementation mechanisms, and sectoral frameworks.
US Ambassador to India Sergio Gor has also said that some components of the agreement are still being formalised, with finer details expected in the coming days.
A Calculated Trade Bet
As global trade realignments accelerate, the India–US deal reflects New Delhi’s attempt to secure market access and strategic partnerships without sacrificing core domestic interests. With agriculture and dairy explicitly shielded, the government argues the agreement offers economic upside while preserving political and social stability.
Whether the deal delivers on its promises will ultimately depend on implementation but for now, the government remains firm that India has negotiated from a position of strength, not concession.
