India has succeeded in protecting agri, dairy in US trade deal, MSMEs to gain: Piyush Goyal tells Lok Sabha

Commerce and Industry Minister Piyush Goyal on Wednesday said New Delhi has safeguarded interests of its sensitive sectors in the India-US trade deal while opening up new opportunities for businesses and workers.

Addressing the Lok Sabha, Goyal said the government had drawn clear boundaries around sensitive sectors like agriculture and dairy. "The Indian side has succeeded in ensuring protection of the interests of its sensitive sectors, namely agriculture and dairy," he said.

He added that the government's concerns in food and agriculture had been addressed in the framework. "India's key sensitivities in the food and agriculture sector have been fully taken into account," Goyal told MPs.

At the same time, he added, this partnership will open up new opportunities for small and medium enterprises (MSMEs), entrepreneurs, skilled workers, and industry.

"This is an important step towards strengthening India–US relations and advancing our journey towards Viksit Bharat 2047, and it also reflects the strong choice between the world’s two largest democracies," the minister said.

On the energy dimension of the deal, Goyal said the government's approach is anchored in domestic needs. "I want to make it clear, as the government has repeatedly stated publicly - ensuring the energy security of 140 crore Indians is the government's highest priority," he said.

While announcing the deal, US President Donald Trump on Monday said that Washington had cut tariffs on Indian goods to 18 per cent in exchange for India lowering trade barriers as well as stopping its purchases of Russian oil and instead buying oil from the US and potentially Venezuela. 

Goyal also argued that the structure of the deal rests on the economic complementarity between the two countries. "In the context of future trade opportunities between the two countries, members will understand that India and the United States are, to a large extent, complementary economies," he said.

Looking ahead, Goyal said that with the world's largest economy, this framework agreement will, in the coming years, accelerate global growth and innovation.

On Tuesday, United States Trade Representative Jamieson Greer said that India will lower tariffs on a 'vast array' of American industrial and agricultural goods to zero per cent under the trade deal. He, however, noted that India will continue to control "certain key areas" that enjoy protection.

"That's going to go to zero for virtually everything. When I say virtually, I mean 98-99%. On the agricultural side, there's a vast, vast array of agricultural goods. So it will go to zero," Greer said Tuesday in an interview to CNBC Squawk Box.

"India, like every country in the world, including the United States, has some protection around certain key areas where they'll continue to control that. We'll continue to work on access. But for a variety of things, tree nuts, wine, spirits, fruits, vegetables, etc, they're going down to zero. This is a big win," Greer said. Separately, the USTR said in a post on X that "India will lower tariffs on a wide array of US industrial and agricultural goods to 0%.