No compromise on farmers' interests, dairy sector; will buy Venezuelan oil: Govt sources on India-US trade deal

Farmers' interests are protected under the India-US trade agreement, even as strategic energy purchases could be a part of the new pact, government sources told India Today. The dairy sector will also continue to be safeguarded, and there has been no compromise on key protections as part of the negotiations, sources added. 

US President Donald Trump said on Monday that under the agreement, reciprocal tariffs on Indian goods will be reduced from 25 per cent to 18 per cent, boosting prospects for Indian exports. He also claimed that India would stop buying Russian oil. 

They further mentioned that New Delhi would maintain protections for these two segments even as it seeks access to an expanded market under the new pact. Commenting on the question of energy supplies, sources said, "We did not buy from Venezuela when sanctions were in place. Now that sanctions are lifted, we will buy." 

They also mentioned that the deal, if materialised, would lead to huge economic gains for India, including increased bilateral trade that could reach $500 billion in the coming years. 

Previously, US Secretary of Agriculture Brooke Rollins said that the deal with India will expand farm exports into the country's "massive market" and pump cash into rural America. 

She added, "In 2024, America’s agricultural trade deficit with India was $1.3 billion. India’s growing population is an important market for American agricultural products and today’s deal will go a long way to reducing this deficit. America First victory on top of the dozens of deals for ag (sic)"

With the Monday announcement, India is among the countries facing one of the lowest tariff rates from the Trump administration. The 18 per cent tariff on India is lower than Pakistan (19 per cent), Indonesia (19 per cent), Bangladesh (20 per cent), Vietnam (20 per cent), and China (34 per cent).