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India-US Trade Deal Protects Key Sectors, Boosts Exports: Piyush Goyal

Union Commerce Minister Piyush Goyal has defended the India-US interim trade agreement, calling it "fair and balanced" and negotiated from a position of strength. He emphasized that sensitive agricultural products are protected and the deal grants India significant tariff advantages over competitors like China. Goyal clarified that the goal to purchase $500 billion in US goods is a statement of intent driven by commercial needs, not a binding obligation. He also projected major benefits for sectors like cotton and aviation, linking the deal to the broader vision of 'Viksit Bharat'.

Key Points: India-US Trade Deal Fair & Balanced, Says Piyush Goyal

  • Deal negotiated from $4T economy strength
  • Sensitive farm products like dairy protected
  • Zero tariffs for key Indian export sectors
  • $500B US import goal is an intent, not obligation
3 min read

India-US trade deal 'fair and balanced': Piyush Goyal

Commerce Minister Piyush Goyal defends India-US trade pact, highlighting tariff advantages, protected agriculture, and a $500B import intent.

"The US has reduced reciprocal tariffs on Indian exports from 50 per cent to 18 per cent. This puts India at a distinct advantage. - Piyush Goyal"

Mumbai, Feb 14

Union Commerce Minister Piyush Goyal, on Saturday, dismissed the Opposition's claims that the India-US interim trade deal hurts domestic interests.

He asserted that the agreement was negotiated from a "position of strength" as a $4 trillion economy and specifically protected the 'Aatmanirbhar' (self-reliant) sectors.

He claimed that the deal was structured to balance consumer interests and export-led growth without ceding sovereignty.

Terming the internal agreement "fair and balanced", Union Minister Goyal at the press conference said that the goal to purchase $500 billion in US goods (energy, aircraft, tech) over five years is an "intent", not a binding obligation, driven by India's actual commercial needs.

"The US has reduced reciprocal tariffs on Indian exports from 50 per cent to 18 per cent. This puts India at a distinct advantage over competitors like China (35 per cent) and Bangladesh/Vietnam (20 per cent). Several key Indian sectors will now enjoy zero tariffs," he added.

He also said that "sensitive" agriculture products like rice, wheat, corn, millets, and dairy -- have been explicitly kept out of the deal to ensure no negative impact on domestic producers, adding that they remain protected.

"No duty concessions were given to the US for dairy, poultry, meat, wheat, rice, maize, and soy," the Union Minister added.

"India only allowed selective access for items it needs or doesn't produce in surplus, such as walnuts, pistachios, and certain wines with a minimum import price," he said.

Union Minister Goyal projected a "huge and wonderful future" for the Indian cotton industry, saying that the trade deal will expand demand rather than hurt growers.

"India will benefit from a "yarn forward" mechanism (similar to concessions enjoyed by Bangladesh). This allows Indian garments to be exported to the US at zero duty if they use specific yarns."

Union Minister Goyal noted that India expects to import nearly $100 billion worth of Boeing aircraft, engines, and spare parts over the next five years.

He said that this boost in the aviation sector would improve remote area connectivity and potentially lead to lower airfares for Indian citizens.

On the Union Budget for 2026-27, Union Minister Goyal said it is a "blueprint for Viksit Bharat by 2047".

He described the budget as a "performance-oriented" document focused on three pillars of "duty" (Kartavya): economic growth, self-reliance (Aatmanirbharta), and infrastructure.

"The budget is designed to transform India into a developed nation by its centenary (100 years) of independence," he said.

He emphasised the significant push for infrastructure expansion to lower logistic costs and boost manufacturing.

He invoked the mantra of "Nagrik Devo Bhava" (The citizen is God), saying the budget reflects a collective resolve for inclusive development.

- IANS

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Reader Comments

S
Sarah B
As someone who follows international trade, the reduction of US tariffs from 50% to 18% for India is a massive competitive advantage. This could really help our exports compete with China and Vietnam. Good negotiating.
P
Priya S
I appreciate the intent to lower airfares with more Boeing planes, but I hope this doesn't mean our own aviation manufacturing takes a backseat. Aatmanirbharta should also mean building our own capabilities, not just buying from abroad. A respectful critique.
R
Rohit P
The $500 billion purchase "intent" sounds good, but let's see the actual numbers on the ground. Hope it's driven by real need as said, and not just to please the US. The devil is always in the details, yaar.
K
Kavya N
Finally some good news for our cotton farmers and the entire textile chain! The 'yarn forward' rule is brilliant. This can create so many jobs in small towns. Fingers crossed for implementation. 👏
M
Michael C
Keeping sensitive agri products out is a smart move. Food security is paramount. The focus on lowering logistic costs through infrastructure in the budget is the real key to long-term competitiveness. Hope it gets executed well.

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