New Delhi, Feb 3 (IANS) India’s trade deal with the United States will not compromise the country’s agriculture and dairy sectors, Commerce and Industry Minister Piyush Goyal asserted on Tuesday following widespread criticism by the opposition.
Implying that opposition parties have found the taste bitter even before the pudding has been brought out, the minister also pointed out that though formalities have been completed, the trade deal has not yet been inked.
Washington does gain market access to India, as will New Delhi to the United States, but the details are still not out.
An agreement with such a large market, if implemented effectively, can substantially boost India’s exports, broaden market access, and underscore the strategic importance of sustained cooperation between two of the world’s largest democracies, as observed by industry bosses.
The tariffs imposed earlier had affected India’s exports to the United States, where exports fell from $6.86 billion in August to $6.30 billion in October, while imports in the respective months rose from $3.60 billion to $4.84 billion.
As experts have pointed out, several areas of the deal remain unannounced.
No American farm or dairy products will get market access in India, and New Delhi will safeguard millions of its small farmers and cooperatives from cheap imports, stated Goyal.
Rather, “this agreement unlocks unprecedented opportunities for farmers, MSMEs, entrepreneurs, and skilled workers to Make in India for the world, Design in India for the world, and Innovate in India for the world”, he added.
While US President Donald Trump said that India has agreed to move its tariffs and non-tariff barriers on US goods toward zero, he has not specified which sectors would be covered under the proposed move.
As Goyal shared on Tuesday, negotiating teams are still at the table.
Elsewhere, the dichotomy was evident in a section of farmer organisations vehemently opposing the India–US trade deal, calling it “total capitulation in the face of Trump’s threats” and “surrendering India’s national interests”.
However, as a statement from the Left-leaning All India Kisan Sabha stated: “Even as we await official communication regarding the specificities, including when the new tariffs would come into effect, how the trade barriers would be reduced, and which US products India has committed to buying…,” before going on to voice its doubts.
The statement was released around the same time that Goyal was stressing that the deal safeguards sensitive sectors while opening vast opportunities for exporters, farmers, fishermen, and youth.
Though the stock market and currency may not be the only barometers to judge the efficacy of a trade deal, but these do reflect the general sentiment.
By Tuesday afternoon, Indian markets surged and the rupee strengthened after President Trump’s announcement of the India–US trade deal.
The Sensex closed up over 2,000 points, the Nifty gained 639 points, and analysts said the rupee’s rally reflected renewed foreign investor confidence. It can be considered that Trump’s social media post announcing a tariff cut from an overall 50 to 18 per cent removed a long-standing weight off investors’ shoulders.
Two major industry bodies too welcomed the development.
Confederation of Indian Industry (CII) President Rajiv Memani said in a statement: “The expected reduction of US–India tariffs to 18 per cent marks a significant step forward in the strategic economic partnership between India and the US.”
According to Federation of Indian Chambers of Commerce and Industry (FICCI) President Anant Goenka, the reduction of reciprocal tariffs on Indian goods “will materially improve the competitiveness of Indian exports in the world’s largest import market”.
–IANS
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