NEW DELHI, Feb 3: The India – US Trade Deal announced by the President Donald Trump and the Prime Minister Narendra Modi on Monday, will exclude sensitive agricultural items and dairy, Commerce Minister Piyush Goyal said on Tuesday.
He said the details of the deal would be made public “soon.” Under the deal, the US has lowered its reciprocal tariff from 25 to 18% besides entirely removing the penal tariff of 25% imposed on India for buying Russian oil.
“The trade deal finalised by India with the U.S. is the best among India’s neighbours and its competitors,” Mr Goyal claimed while speaking at a press briefing. “PM Modi has always protected the agriculture and dairy sectors and has never compromised on their interests. In the U.S. trade deal as well, India’s sensitive sectors of agriculture and dairy have been excluded,” he said.
Beyond this, Mr Goyal did not specify any other details of what India had conceded to the U.S, nor did he address Mr Trump’s claims that India would stop buying Russian oil, increase oil purchases from Venezuela, and increase overall purchases from the U.S.
He also attacked the opposition for creating ruckus in Parliament stating that it was because of their actions in Parliament that he was conveying the information on the trade deal via a press conference and not on the floor of the House.
“Ordinarily, we would have wanted to speak in Parliament about this,” he said. “But, as you all saw, the way the Opposition, especially the Rahul Gandhi-led Congress party and their allies, the DMK, the Trinamool Congress, and the SP, behaved in Parliament, reaching the Speaker’s dais and insulting him, we have had to speak before you outside the House.”
Mr Goyal said the deal was in the “final stages of detailing” between the negotiating teams of the two countries. “As soon as the final understanding of the deal is inked, the joint statement is finalised, and technical processes are completed, full details will be shared,” the Minister said.
In a rare public admission, Mr Goyal acknowledged the impact of the U.S. tariffs on several sectors earlier. “Our farmers and exporters were all affected by the 50% tariffs,” he said, adding, “Our marine exporters were facing difficulties. The textile sector had also been facing the need for reduced tariffs.
“This is a deal that will protect the interests of every Indian and provide huge opportunities for all the people of India, and will protect the sensitive sectors, including agriculture and dairy,” Mr Goyal said, “It will open up huge opportunities for our labour-intensive export sectors such as textiles, apparel, plastics, home decor, leather and footwear, gems and jewellery, organic chemicals, rubber goods, machinery, and aircraft components.”
Mr Goyal also sought to address questions from the Opposition as to why the deal was first announced by Mr Trump. “The reciprocal tariff was set by the U.S., and they were the ones who had to reduce tariffs, so when they did reduce it to 18%, that news would obviously come from the U.S,” he explained.
In his post on Truth Social, Mr Trump also made several assertions about what Mr Modi had claimed to have agreed on India’s behalf. One of these was that India would buy “over $500 billion dollars [sic] worth of U.S. energy, technology, agricultural, coal, and many other products.”
According to sources in the Indian Government, the $500 billion worth of purchases is to be spread over five years from when the deal comes into effect, and is a sign of “India’s intent to import” equipment for data centres, increase civil nuclear cooperation, and increase the imports of advanced AI chips.
(Manas Dasgupta)
