Goyal argued that the new rate was lower than tariffs imposed on several competitor nations, giving Indian goods a competitive edge in the American market.
New Delhi: Commerce and Industry Minister Piyush Goyal on Wednesday told the Lok Sabha that the recently concluded India–US trade agreement represents a “historic and structural” step towards strengthening bilateral ties and advancing India’s vision of Viksit Bharat 2047.
He noted that Prime Minister Narendra Modi and President Trump had discussed the agreement during a phone call on February 2, after which Washington announced the tariff reduction. Goyal argued that the new rate was lower than tariffs imposed on several competitor nations, giving Indian goods a competitive edge in the American market.
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The Minister further assured Parliament that the government would diversify energy resources to protect the interests of India’s 140 crore citizens. “Diversifying energy resources is the basis of our strategy. As India heads towards Viksit Bharat, we need to improve our capacity in the energy and nuclear sector. The US is a leading nation in these fields, and comparative advantage will boost exports in several sectors,” he said.
Addressing Members of Parliament, Goyal emphasised that India had successfully safeguarded the interests of sensitive sectors, particularly agriculture and dairy, during year-long negotiations with the United States. He assured MPs that the agreement would benefit exporters, MSMEs and skill development, while also supporting the government’s Make in India, Design in India and Innovate in India initiatives.
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The deal, which reduces tariffs on Indian goods to 18 per cent, has sparked political controversy. The Opposition raised concerns following US President Donald Trump’s claims that India might lower tariffs to zero on certain American products and commit to purchasing USD 500 billion worth of US energy, technology, agricultural and coal exports.
Goyal responded by stressing that both nations had carefully considered their respective economic sensitivities. “Since Prime Minister Narendra Modi's US visit in February 2025, the two nations have been discussing a balanced and profitable trade deal. In the last year, negotiators from both sides have held talks at several levels. It is obvious that, looking at their respective economies, both nations would like the best result to safeguard the sensitive economic sectors. India has been successful in safeguarding the interests of sensitive sectors, such as agriculture and dairy. The US also had some sensitive sectors. After one year of talks, negotiators from both sides ensured the trade deal,” he said.
His remarks were delivered against a backdrop of continuous sloganeering and protest from Opposition MPs, who have accused the government of compromising national interests. On Tuesday, Goyal reiterated that Prime Minister Modi had consistently championed agriculture and dairy, ensuring their protection in the trade deal.
ANI
Published: 04 Feb 2026, 01:18 pm IST
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