Union Minister of Commerce & Industry Piyush Goyal Issues Clarifications on India US Trade deal
“The detailed contours of the agreement will be announced shortly after completion of these processes,” he added.
Union Minister of Commerce & Industry Piyush Goyal on Wednesday issued what he called a “factual clarification” on the India–US trade deal.
Goyal said he was scheduled to deliver the statement in Parliament; however, due to the alleged ruckus created by the Opposition, he released the full statement publicly for everyone’s benefit.
The Opposition, including Leader of the Opposition Rahul Gandhi, strongly criticised the deal and alleged that the India–US trade agreement, announced late on Monday night, was signed under immense pressure and that Prime Minister Narendra Modi is “compromised.” They also cited a statement by US Secretary of Agriculture Brooke Rollins on increased exports of American farm products to the Indian market, calling the deal “deeply alarming for India.”
In the statement released on Wednesday, Union Minister Piyush Goyal said that India and the United States of America have been engaged in regular discussions over the last year to conclude a “balanced and mutually beneficial bilateral trade agreement.”
“Given the significant and varied interests of the two sides, it is natural that both sides would want to ensure the best possible outcome, while safeguarding critical and sensitive sectors in their respective economies,” he added.
Goyal claimed that during the course of the negotiations, India was able to secure the best possible outcome, particularly by ensuring that the interests of the agriculture and dairy sectors were protected.
“The US side too had areas that were sensitive from its point of view. Following a nearly year-long discussion spread over many rounds, the two negotiating teams were able to narrow their differences significantly and finalise several areas of the bilateral trade agreement,” he added.
The India–US trade deal was first announced by US President Donald Trump after a telephonic conversation with Prime Minister Modi on Monday night, during which he shared some details of the agreement, including reduced tariffs on Indian exports to the US.
Later that night, Prime Minister Modi also took to X to announce the deal involving a reduced 18 per cent tariff; however, he did not share further details.
Piyush Goyal on Wednesday underlined that the rate is lower than the tariffs imposed by the US on several competing countries and is expected to enhance India’s export competitiveness in the US market.
“The agreement also provides significant comparative advantage to Indian exporters, particularly in labor-intensive sectors and manufacturing,” Goyal further said, adding that “India’s core sensitivities in food and agriculture have been fully safeguarded” in the deal.
The partnership, Goyal said, will unlock new opportunities for MSMEs, entrepreneurs, skilled workers and industry.
“It will also enable access to advanced technologies and support India’s vision to ‘make in India’ for the world, design in India for the world, and innovate in India for the world,” he added.
He continued, “This landmark framework agreement therefore marks an important step in strengthening India-US relations and advancing our journey towards viksit Bharat 2047. It also reflects the strength of engagement between two of the largest democracies in the world, who are natural partners working together for shared prosperity.”
However, the details of the deal are yet to be shared, and it has also been criticised by the Congress, with Leader of the Opposition in the Rajya Sabha Mallikarjun Kharge posting that the “nation does not know any aspect of the Trade Deal” and raising several questions.
Following are the questions raised by Kharge in a post on X:
“1) Has India compromised in any manner under US pressure? Have we agreed to ZERO tariffs on American imports, as claimed by Mr. Trump?
2) Would our farmers be secure? Have we, fully or partially opened up our agricultural sectors for the US Agri market?
3) Would India stop buying oil from Russia? What has India conveyed to Russia in this regard?”
In his statement, Goyal informed that the two sides will now work together to complete the necessary technical processes and finalise the paperwork related to the trade deal.
“The detailed contours of the agreement will be announced shortly after completion of these processes,” he added.
Regarding issues related to India’s energy sourcing, Goyal stated, “I wish to clarify once again as the government has stated publicly on several occasions, that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government.”
He said that diversifying India’s energy sourcing is in keeping with market conditions and evolving international dynamics.
“In so far as references to sourcing from the United States are concerned, honorable members would appreciate that India and the US are largely complementary economies. As India proceeds on the path to Viksit Bharat, we will need to grow our capacities enormously in multiple sectors, including energy, aviation, data centers, nuclear power, etc., to name only a few,” he explained.
He added that the US is a world leader in these areas and that “it is natural, therefore, for us to focus on the trade potential in these sectors, which will lead to an expansion not only in our sourcing but also in our exports.”
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