Commerce Minister Piyush Goyal breaks down why the US President went public first with the trade deal first, and what it means for India’s industries and sensitive sectors
Commerce Minister Piyush Goyal on Tuesday clarified that US President Donald Trump announced the landmark India-US trade deal before Prime Minister Narendra Modi because “it was Washington that had originally imposed tariffs on Indian goods and subsequently withdrew them.”
“US had imposed reciprocal tariff, so announcement regarding reduction came from President Trump,” Goyal said responding to queries why President Trump had tweeted about the agreement ahead of India.
Goyal said India and the United States will soon put out a joint statement on their trade deal and share details about it after a “final understanding” is inked and technical processes are completed.
President Trump and PM Modi announced the breakthrough trade deal following a telephonic conversation, effectively ending a period of severe trade tensions between Washington and New Delhi.
The agreement cuts US tariffs on Indian goods from a punitive 50% down to 18% and removes an additional 25% levy imposed last August in response to India’s continued purchases of Russian oil. The move brings the total effective tariff down from the previous 50%.
Detailing the wide-ranging benefits of the agreement for India, Goyal said that sensitive sectors such as agriculture and dairy were carefully protected during negotiations.
“PM Modi has always championed both the agriculture and dairy sectors, safeguarding their interests and working tirelessly to ensure a bright future and ample opportunities for the people in this sector. I am pleased that the entire country understands and appreciates this, and it resonates deeply with them. The sensitive factors of India’s economy, particularly agriculture and dairy, have been protected,” Goyal said.
Highlighted the opportunities it would create for export-oriented industries, he said, “I believe that through this deal, our MSMEs, our engineering sector, all the players in our engineering sector — whether they manufacture auto components, electrical parts, or work on selling various types of engineering goods in America, or plan to do so in the future — our textile sector, our gems and jewelry sector, our leather goods sector, our marine goods sector, will all get numerous opportunities through this deal.”
Goyal noted the widespread enthusiasm across the country following the deal’s announcement, particularly among stakeholders in export-oriented and technology sectors.
“We have seen reports from across the country; there is widespread enthusiasm. All those involved in India’s exports, those connected to India’s technology sector, those who want to bring modern technology to India or become part of global supply chains and global value chains, those who want to establish global capability centers, and those who want to invest in various sectors, especially labor-intensive ones that provide employment to millions of people — all are excited by this,” he added.
With inputs from agencies
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