The Indian government has issued its first official statement on the India-US Trade Deal, calling it a major win for the country. On Tuesday, Union Commerce and Industry Minister Piyush Goyal said the agreement protects India’s core interests and strengthens the economy. According to him, the deal is one “every Indian can feel proud of.”
Speaking to the media, Goyal made it clear that the government did not compromise on any sensitive sector. He added that Prime Minister Narendra Modi personally ensured strong safeguards for agriculture and dairy, which remain critical to India’s rural economy.
India-US Trade Deal: US Cuts Tariffs on Indian Goods to 18%
Most importantly, after India-US Trade Deal the United States has sharply reduced tariffs on Indian exports. Under the new agreement, total tariffs have dropped from 50% to 18%.
Earlier, the US imposed a 25% reciprocal tariff in April. Later, it added another 25% penalty over India’s purchase of Russian oil. However, a White House official confirmed that Washington has now removed the penalty tariff. As a result, Indian exporters will face only an 18% tariff.
This decision brings immediate relief to Indian manufacturers. Moreover, it improves India’s price competitiveness in the US market.
Major Boost for Indian Export and Manufacturing Sectors after India-US Trade Deal
According to Piyush Goyal, the trade deal will significantly expand India’s export potential. In particular, it will benefit labour-intensive and manufacturing-driven sectors.
These include:
- Engineering goods and machine components
- Textiles and apparel
- Marine products and seafood
- Gems and jewellery
- Leather, footwear, chemicals, and technology
Notably, these industries employ millions of workers across India. Therefore, the agreement is expected to generate jobs and support small and medium enterprises (SMEs).
In addition, Goyal said the deal will integrate Indian companies into global value chains, which will strengthen long-term growth.
Agriculture and Dairy Remain Fully Protected
Meanwhile, the government addressed concerns raised by farmers and opposition leaders. Goyal stressed that India fully protected its agriculture and dairy sectors during negotiations.
“The Prime Minister has always prioritised farmers and dairy producers,” Goyal said. “He has never allowed their interests to be compromised.”
Similarly, Agriculture Minister Shivraj Singh Chouhan informed Parliament that the government signs trade agreements only after building strong safeguards. He confirmed that protection against unfair competition from heavily subsidised foreign farm products remains in place.
Therefore, the government insists that Indian farmers will not face adverse impacts.
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