New Delhi: India will take all necessary steps to safeguard and promote its national interest, Union Commerce and Industry Minister Piyush Goyal said on Thursday, a day after US President Donald Trump announced a 25 percent tariff and additional penalties on Indian exports to the United States, effective from August 1.

Government engaged with stakeholders

Making a suo motu statement in both Houses of Parliament, Goyal stated that the government is closely examining the implications of these tariffs and is in consultation with stakeholders, including farmers, exporters, MSMEs, and industry bodies.

“The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry. We will take all necessary steps to secure and advance our national interest,” he said.

Goyal added that the Commerce Ministry is actively engaging with stakeholders to gather feedback on the situation and determine a way forward.

Tariffs imposed amid ongoing trade talks

The announcement from President Trump comes at a critical juncture, just ahead of the sixth round of bilateral trade talks between India and the US, scheduled for August 25. The two sides have been negotiating a comprehensive bilateral trade agreement (BTA) since March 2025, with a goal of more than doubling trade in goods and services to USD 500 billion by 2030, up from the current USD 191 billion.

So far, five rounds of talks have been completed, and both countries are aiming to conclude the first phase of the agreement by the fall of 2025 (October–November). They are also exploring the possibility of an interim deal ahead of the final BTA.

President Trump’s surprise move also includes an unspecified penalty over India’s procurement of crude oil and military hardware from Russia.

Trump reiterated his strong views on India-Russia ties, stating, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”

He also criticised India’s trade policies, adding, “We have done very little business with India, their tariffs are too high, among the highest in the world.”

India’s economic rise highlighted

In his address, Goyal pointed to India’s remarkable economic transformation over the past decade.

“We have risen from the 11th largest economy to one of the top 5 economies, driven by our reforms, hard work of our farmers, MSMEs and entrepreneurs. It is also widely expected that we will become the 3rd largest economy in a few years,” he said.

He added that international institutions and economists now view India as the “bright spot” in the global economy, with the country contributing nearly 16 percent of global growth.

India firm on its trade position

Responding to US expectations around agriculture and dairy concessions, Goyal reaffirmed India’s stance, which has become increasingly firm in recent talks. India continues to seek import duty concessions from the US for labour-intensive sectors like gems and jewellery, auto parts, and others.

The Minister also noted that India has made significant progress in becoming a global manufacturing hub under the 'Make in India' initiative.

“India’s young, skilled and talented workforce is driving innovation and competitiveness of Indian industry. Our exports have steadily increased during the last 11 years,” he said.

He emphasised that in a protectionist global environment, India has successfully negotiated mutually beneficial trade agreements with several countries, including the UAE, UK, Australia, and the EFTA group.

“We are also committed to similar trade agreements with other countries. We are consistently working for the welfare of the farmers and Indian agriculture, to promote prosperity and ensure food security,” Goyal added.

PTI inputs