Commerce and Industry Minister Piyush Goyal has reiterated India’s strong commitment to protecting its farmers’ interests while maintaining a constructive dialogue with the United States on trade matters. The Indian government has emphasized the necessity of a balanced trade partnership and underscored the importance of shielding the agricultural sector from potential disruptions caused by increased imports.
According to sources cited by Business Today, India is unlikely to fully open its agricultural sector to US imports due to concerns about the impact on local farmers. However, in pursuit of a broader trade agreement with the world’s largest economy, India may consider reducing tariffs on select products, including automobiles, electronic goods, pharmaceuticals, medical devices, and alcoholic beverages such as whiskey.
A high-level meeting is scheduled to take place this week at the Prime Minister’s Office (PMO), where officials from the Commerce Ministry, Ministry of External Affairs, Finance Ministry, and NITI Aayog will review the progress of trade negotiations with the US, among other key issues.
Last week, Commerce Minister Piyush Goyal visited Washington for discussions with top US officials, including US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. These talks primarily focused on finalizing a bilateral trade agreement aimed at expanding the two-way trade volume beyond $500 billion by 2030. The discussions form part of broader efforts to resolve tariff disputes and enhance market access for businesses in both nations.
Government insiders have emphasized India’s firm position on safeguarding the livelihood of its farmers while engaging in trade negotiations. The country has conveyed that any trade agreement must consider the economic well-being of its vast farming community, which remains the backbone of the nation’s economy. While India is open to reducing trade barriers in selected sectors, the government remains resolute in ensuring that domestic interests are well-protected.
The Ministry of External Affairs has confirmed that discussions are in progress to boost trade in goods and services through the anticipated Bilateral Trade Agreement. These talks align with Prime Minister Narendra Modi’s scheduled visit to the United States on February 12-13, which will mark his first visit since Donald Trump’s return to office as President.
Trade between India and the US reached an all-time high of $118.2 billion in the last financial year, making the US India’s largest trading partner. However, tensions persist as President Trump has repeatedly criticized India’s high tariffs, calling them excessive and a hindrance to American businesses. “India imposes massive tariffs. It’s almost impossible to sell anything there… but now they’ve agreed to lower them significantly since we’ve been calling attention to it,” he remarked last week.
At present, the US has a trade deficit of $45.6 billion with India. Data from the World Trade Organization (WTO) indicates that the US has a trade-weighted average tariff rate of 2.2%, whereas India’s stands at 12%.
Last month, both nations reached an understanding to finalize the initial phase of the Bilateral Trade Agreement by the end of this year. This move is expected to pave the way for further trade liberalization and closer policy alignment between the two economies. Additionally, sources indicate that the imposition of US tariffs on Chinese imports could prove advantageous for India by providing a significant boost to the country’s electronics manufacturing sector.