Modi's Trade Pacts Open Global Markets, Congress Stuck in Paralysis: Sonowal

Addressing a press conference in Dibrugarh, Sonowal highlighted India's shift since 2014 from a "defensive and hesitant trade posture" to assertive, strategically negotiated global engagement. He pointed to nine major FTAs finalised in the last six years, granting preferential access to 38 developed nations across Europe, the Gulf, Oceania, and North America. These pacts account for nearly 30% of India's export value approximately $242 billion (₹22 lakh crore) and have opened preferential access to about 70% of global trade markets.

"For decades, Congress reduced trade policy to defensive posturing and policy paralysis. They lacked the confidence to believe that Indian industry, Indian farmers, and Indian entrepreneurs could compete globally," Sonowal said. "Under Prime Minister Modi ji's leadership, India negotiates from a position of strength expanding markets, securing better tariff terms than competing economies and safeguarding our core interests.

Sonowal cited the recent India-US interim trade deal as a key symbol of this transformation. The deal aims to elevate bilateral trade to $500 billion annually, with the US reducing reciprocal tariffs on Indian goods to 18% lower than several competitors. It provides zero duty access for critical sectors such as generic pharmaceuticals, gems and diamonds, aircraft parts, and select agricultural products, including spices and tea, while extending preferential treatment to 232 tariff lines. Importantly, 90-95% of sensitive agricultural items, wheat, rice, maize, dairy, poultry, and key spices, remain fully protected.

"This government has shown that you can open global markets without compromising farmers' welfare. Congress created fear. PM Modi has created an opportunity," Sonowal emphasised.

He also spotlighted the landmark India-EU Free Trade Agreement concluded in late January 2026 after negotiations relaunched in 2022. The pact offers preferential access to 99.5% of India's exports to 27 European nations, with 90.7% becoming duty-free upon implementation. Labour-intensive sectors like textiles, leather, footwear, and gems and jewellery stand to gain significantly, alongside the opening of 144 services sub-sectors to bolster India's IT and professional services dominance.

The India-UK Comprehensive Economic and Trade Agreement ensures duty-free access for nearly 99% of India's exports and opens 137 services sub-sectors, benefiting professionals in IT, finance, telecom, and education.

Agreements with Oman and New Zealand provide near-total or full duty-free access from day one, expanded services entry, and new mobility and investment pathways.

Sonowal described these deals as a "structural shift" in India's global positioning, driven by Modi's vision. "Our dynamic PM Narendra Modi ji has inspired confidence not only among world leaders but also among our entrepreneurs, MSMEs, and youth. He has demonstrated that India will no longer be a passive participant in global trade but a rule-shaper and opportunity creator."

Turning to Assam's gains, Sonowal noted that tea exports have regained zero-duty access in the US market under the recent interim deal, fueling the strongest growth in 25 years with shipments rising by 40 million kg in the 2025-26 cycle. Total Assam tea exports are projected to exceed 150 million kg, valued at around ₹2,500 crore. Other sectors, including spices, speciality rice, handloom, handicrafts, bamboo products, petrochemicals, and horticulture, are poised for expansion, with the state's overall exports expected to surpass ₹10,000 crore by 2026-27.

"The Congress party has consistently opposed reforms, infrastructure and transformative trade agreements because its politics thrives on pessimism," Sonowal said, referencing past "Xuta Kombol politics." "From their negativity, our government has emboldened Assam's tea industry and its trade prospects with this agreement with the US."

He concluded that these agreements reflect the confidence of a "New India" under Modi's leadership, creating value, wealth, and opportunity while advancing toward Viksit Bharat and prosperity for every citizen.

- ANI