Union Commerce Minister Piyush Goyal on Wednesday assured Parliament that India’s agriculture and dairy sectors have been fully protected in the proposed India–US trade agreement, amid political backlash over the deal’s terms.
Speaking in the Lok Sabha, Goyal said the agreement was finalised after nearly a year of negotiations and that India had ensured safeguards for its most sensitive sectors. His statement came as the Opposition raised concerns over remarks by US President Donald Trump, who suggested that India could lower tariffs on select American goods to zero and commit to large-scale purchases of US energy, technology, and agricultural products.
The trade deal, which proposes reducing US tariffs on Indian goods to 18 per cent, has triggered a political row, with critics warning of potential risks to domestic farmers and dairy producers.
Responding to these concerns, Goyal said discussions between the two countries began in earnest following Prime Minister Narendra Modi’s visit to the United States in February 2025 and continued at multiple levels over the past year.
“Both countries have sensitive sectors, and every effort was made to protect them,” Goyal said, adding that India had successfully safeguarded key areas such as agriculture and dairy, while accommodating mutual interests.
The commerce minister also underlined the benefits for Indian exporters, noting that the 18 per cent tariff rate is lower than that imposed on several competing countries, which would improve India’s competitiveness in the US market.
Referring to a phone conversation between Prime Minister Modi and President Trump on February 2, Goyal said the tariff reduction announcement followed soon after. He added that the agreement would boost exports, support MSMEs, and contribute to skill development in India.
Goyal further said the remaining formalities related to the agreement would be completed shortly, signalling that the trade pact is nearing finalisation.
