New Delhi, February 4: India has successfully safeguarded its sensitive sectors, particularly agriculture and dairy, in its trade deal with the United States. This announcement was made by Commerce and Industry Minister Piyush Goyal in Parliament.
The minister informed the Parliament that following Prime Minister Narendra Modi’s visit to the U.S. in February 2025, both nations have engaged in regular discussions aimed at finalizing a balanced and mutually beneficial bilateral trade agreement.
During these discussions, both parties maintained their respective sensitive interests. Goyal stated, “The Indian side has successfully ensured the protection of its sensitive sectors, especially in agriculture and dairy.”
After nearly a year of negotiations, India and the U.S. have reached an agreement on the bilateral trade deal. On February 2, 2026, Prime Minister Modi and U.S. President Donald Trump discussed various bilateral and international issues over the phone. Following this conversation, President Trump reduced the tariff rate on Indian exports to the U.S. to 18%.
Goyal noted that this rate is lower than the tariffs imposed on several competing countries, significantly enhancing the competitiveness of Indian exports in the U.S. market.
He further indicated that this agreement will open new opportunities for MSMEs, entrepreneurs, skilled workers, and industries, while also ensuring access to advanced technology. The deal embodies the vision of “Make in India for the World,” “Design in India for the World,” and “Innovate in India for the World.”
Goyal emphasized that this historic agreement is a significant step towards strengthening India-U.S. relations and advancing the journey towards a developed India by 2047.