India's core sensitivities in food, agri safeguarded in US deal: Goyal

Commerce and industry minister Piyush Goyal told Parliament that India protected key food and agriculture interests in the trade deal with the US, while both sides addressed sensitive areas

Emphasising that ensuring energy security of Indians is the “supreme priority”, Commerce and Industry Minister Piyush Goyal told the Parliament on Wednesday that the government aims to diversify energy sources keeping in mind the changing international dynamics.

 

“Diversifying energy sourcing, keeping with objective market conditions and evolving international dynamics is a key strategy. All of India’s actions are taken with this in mind,” Goyal said in his statement on the India-US trade deal.

 

Announcing the trade deal, US President Donald Trump had on Monday said that New Delhi has agreed to stop buying Russian oil and buy much more from the US and, potentially, Venezuela, which will help end the war with Russia and Ukraine.US slashed tariffs on India to 18 per cent from 50 per cent.

 

 

Stressing that India’s core sensitivities in food and agriculture have been fully safeguarded in the trade deal, he said that not only India, the American side has also protected areas that were sensitive from their point of view.

 

Explaining the rationale towards New Delhi’s intention to buy goods worth $500 billion from the US over the next five years, the minister pointed out that both countries are largely complementary economies. As India progresses on the path to becoming a developed nation, the country will need to grow capacities in sectors, including energy, aviation, data centers, and nuclear energy. Since the US is a global leader in these sectors, India will explore trade possibilities in these areas, which will expand imports and exports.

 

The India-US agreement came over five months after Washington imposed 50 per cent tariffs on several Indian exports, including a 25 per cent punitive duty for India’s purchases of Russian oil.

 

While Trump said that New Delhi will reduce tariffs to ‘zero’, India has maintained that a deal has been agreed upon, while protecting the sensitive sectors. For instance, India will continue to not offer tariff concessions to items such as dairy, poultry, cereals, GM food, soya meal, corn, maize.

 

India-US Bilateral Trade Agreement (BTA) negotiations were launched in March and have included half a dozen rounds of talks.

 

“Following a nearly year-long discussion spread over many rounds, the two negotiating teams were able to narrow their differences significantly and finalise several areas of the bilateral trade agreement. The day before yesterday, Prime Minister Narendra Modi and President Donald Trump spoke over the phone to discuss multiple issues of bilateral and international significance. Subsequently, President Trump announced a reduced rate of 18 per cent for Indian exports to the US,” Goyal said, adding that the agreement will provide significant comparative advantage to Indian exporters, particularly in labour-intensive sectors and manufacturing.

 

“I would like to inform the Hon’ble members that, in terms of next steps, the two sides will now work together to complete the necessary technical processes and finalise the paperwork related to the trade deal, so as to expeditiously unlock its potential. The detailed contours of the agreement will be announced shortly after completion of these processes,” he said.