India-US Trade Deal: Goyal Dismisses Trust Deficit, Details New Agreement

Speaking exclusively with ANI on whether there was a lack of trust with the US, particularly under the Trump administration, Goyal said, "I don't think there's any trust deficit between the United States of America and India or between our leaders."

"For us, this is a Trade Agreement which will further cement the US-India long-term strategic goals into outcomes and I see that we have come up through the negotiations with a very good Agreement, which will serve both countries honourably, which will provide opportunities for both countries in their respective areas of strength," the Minister added.

He emphasised that India and the US have partnered across several domains, including defence, trade and strategic cooperation, built on mutual respect and shared interests.

"Negotiations are very intense, very detailed. They go line by line and we have some 12,000 lines. You have to crystal gaze into the future. You have to understand both sides' strengths and weaknesses...It's a very intense work. Takes long patient study, understanding and negotiation and never has to be done in a hurry, which is why I often say that we should have speed, not haste. One should never negotiate with the deadline in our hand," the Minister said.

Addressing concerns that differences over Russian oil or defence matters could impact the India-US trade deal, the minister categorically ruled out any such linkage. "No, not at all," Goyal said, stressing that trade negotiations are independent of foreign policy or defence considerations handled by other ministries.

Explaining India's energy trade with the US, Goyal noted that purchasing crude oil, LNG or LPG from the US serves India's strategic interest by diversifying energy sources.

"The buying of crude oil or LNG, LPG from the US is in India's own strategic interests as we diversify our oil sources. But the decisions are taken by the buyers, by the companies themselves. So, the trade deal doesn't discuss who will buy what and from where. The trade deal ensures that the pathway to trade is smooth, ensures preferential access. FTAs are all about preferential access to your competition. So, today when we got an 18% reciprocal tariff, we have a preference over other developing nations who are usually our competition," he said.

Goyal underlined that the core purpose of a trade agreement is to ensure smoother trade pathways and preferential market access. "FTAs are all about preferential access vis-a-vis your competition," he said, adding that reciprocal tariff arrangements give India an edge over other developing nations. This preferential treatment, he said, is what makes free trade agreements attractive and beneficial for long-term economic growth.

The United States and India announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by President Donald Trump and Prime Minister Narendra Modi on February 13, 2025. As part of the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US agricultural and food products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

On the other hand, the United States will impose a reciprocal tariff of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and certain machinery. Subject to the successful conclusion of the Interim Agreement, the US has said it will later remove reciprocal tariffs on select items, including generic pharmaceuticals, gems and diamonds, and aircraft parts.

The United States will also remove tariffs on certain aircraft and aircraft parts from India, which were imposed to address national security threats, the joint statement said.

According to the statement, India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers' grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. India also intends to purchase USD 500 billion of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.

- ANI