Finance Minister Nirmala Sitharaman has strongly defended the recently announced India-US trade agreement, dismissing opposition allegations of lack of transparency while assuring that Indian interests, particularly in agriculture and dairy sectors, remain protected. In an exclusive interview with ABP News, Sitharaman called the tariff reduction a positive development for India and emphasized that any final assessment should be made only after the agreement is formally signed. The Finance Minister indicated that full details would be made available through proper parliamentary channels, with implementation timelines for various provisions also to be disclosed. She expressed confidence that the government carefully weighs all factors before taking such decisions and acts in the best interest of the country.
The India-United States trade agreement is delivering major relief across multiple export-oriented and labour-intensive sectors, with the US reducing tariffs on Indian goods from 50% to 18% and extending zero-duty access to a large basket of products. According to Commerce Minister Piyush Goyal, the agreement was structured to ensure that core farm segments, including dairy and key staple crops, remain protected from disruptive import competition, describing the outcome as one that respects the interests of Indian farmers while still expanding trade. Vikram Chhabra, senior economist at 360 ONE Asset, stated that the agreement removes a lingering overhang on trade and sentiment, even though finer details are still awaited. Industry bodies have broadly welcomed the tariff reductions while emphasising the need for execution and coordination.
Commerce Minister Piyush Goyal emphasised that India has fully safeguarded its sensitive dairy and agriculture sectors in the trade pact with the United States, even as it opened wider opportunities for labour-intensive and export-oriented industries. Goyal underlined that items such as dairy products and several major agricultural commodities have been kept out of the tariff-cut framework, in line with India's long-standing approach in free trade agreements. This strategic protection ensures that core farm segments, including dairy and key staple crops, remain protected from disruptive import competition, while the agreement still expands trade opportunities for other sectors. Finance Minister Sitharaman provided additional assurances, stating "No compromise on the interests of farmers or the dairy sector" and clarifying that "red lines" were established before negotiations began to protect these sensitive sectors. However, Agriculture groups have vowed to organize protests nationwide from Feb 4-11, with farmers' groups like Bharatiya Kisan Sangh stating "We won't allow the US farmers to enter India."
Commerce Minister Piyush Goyal announced that the India-US trade deal will provide significant benefits to MSMEs, artisans, and craftsmen, with lakhs of jobs expected to be created through increased exports. According to Goyal, "It is a big thrust to MSMEs employing a large number of women and youth. With exports from labour intensive sectors like textiles & apparel, leather & footwear, toys, and gems & jewellery to the US set to scale, lakhs of jobs will be created while boosting domestic manufacturing." The minister emphasized that "I can say with absolute certainty that the farmers, MSMEs, artisans, and craftsmen of India will not suffer any kind of loss," while India gains greater access to the US market. Tariffs will go down to zero on several key Indian export sectors, including generic pharmaceuticals, gems & diamonds, and aircraft parts, thereby further enhancing India's export competitiveness and Make in India initiatives.
The trade deal has sparked significant political tensions, with Leader of Opposition Rahul Gandhi terming the deal "surrender 2.0," questioning why major announcements affecting India came first from Washington rather than New Delhi. The opposition has raised concerns about lack of transparency in deal negotiations, potential impact on Indian agriculture, energy security implications, and market access commitments to the US. Eight opposition MPs were suspended following disturbances that included tearing and throwing of papers in the house, with the opposition criticizing the government for not allowing proper parliamentary scrutiny. PM Modi has welcomed the tariff reduction, stating that Made in India products will now have a reduced tariff of 18%, marking a thaw after months of trade tensions during which the US had imposed a cumulative 50% tariff on Indian goods. However, New Delhi officials have not elaborated further, saying only that a joint statement would be released in two to three days with more details.