Government Says Farm And Dairy Interests Protected In India–US Trade Agreement

Union Commerce Minister Piyush Goyal on Wednesday informed Parliament that India had ensured the protection of key sensitive sectors, including agriculture and dairy, while finalising the recently announced trade agreement with the United States. Addressing the Lok Sabha amid protests by Opposition members, the minister said the negotiations were conducted with caution to prevent any compromise on India’s core interests.

Goyal explained that the agreement was the result of nearly a year of detailed negotiations between the two countries, marked by repeated discussions at multiple levels. He said it was natural for both sides to prioritise their own sensitive sectors, and stressed that India succeeded in safeguarding areas of critical importance, particularly farming and dairy, before giving final shape to the bilateral pact.

The trade deal was announced earlier this week by US President Donald Trump, who stated that reciprocal tariffs on Indian goods would be reduced from 25 per cent to 18 per cent. However, Trump’s claim that India had agreed to purchase over USD 500 billion worth of American products, including agricultural goods, sparked political debate back home and drew criticism from Opposition leaders. Congress leader Rahul Gandhi accused Prime Minister Narendra Modi of compromising national interests, allegations that intensified scrutiny of the agreement.

The Indian government has not yet officially responded to the USD 500 billion purchase figure mentioned by the US President, leading to questions about its scope, timeline, and feasibility. Government sources have, however, maintained that farmers’ interests remain fully protected, noting that agriculture was one of the most contentious issues during the negotiations and a key reason behind delays in finalising the pact.

Officials also indicated that strategic energy imports, including crude oil purchases, could emerge as an important component of the agreement. They reiterated that India would continue to uphold safeguards in sensitive sectors even as it seeks greater market access under the broader trade framework.

The trade talks had been strained by high tariffs imposed by the US, which at one point reached 50 per cent on Indian goods. These included additional penalties linked to India’s purchase of Russian oil, which Washington claimed was indirectly supporting Moscow’s war in Ukraine. India repeatedly rejected these allegations, but the differences contributed to prolonged delays in reaching an agreement.

Trump announced the deal on social media, saying he had spoken with Prime Minister Modi. The Indian Prime Minister later thanked the US President and highlighted that Indian-manufactured goods would now face lower tariffs in the American market.