How India flipped the agri script on Trump? Piyush Goyal reveals
Union Minister Piyush Goyal stressed that India maintained its red lines on agriculture and dairy in its trade deal with the US, while opening its market selectively for certain items like wines and spirits.
India has secured a major trade advantage over its competitors, with Union Minister Piyush Goyal asserting that the trade deal with the US protected Indian farmers and MSMEs, while at the same time, it opened the US market to several agricultural products. Addressing a press conference on Saturday, hours after the interim trade framework was announced, Goyal stressed that no import benefits would be given to US agricultural products, and India opened its market selectively for certain American items like red sorghum, tree nuts, wines and spirits.
In essence, India flipped the script. While the US sought wider access to India's dairy and agriculture markets, New Delhi has managed to achieve zero reciprocal tariffs on several of its agricultural products, like tea, coffee, banana, mango, etc. This is explained below in detail.
"All those products on which we are 'aatma nirbhar' have been kept out of the agreement," Goyal said, claiming that the agreement, a year in the making, would open a $30 trillion market for Indian exporters. The final trade deal, whose protracted negotiations soured India-US ties, is expected to be signed in mid-March.
WHICH FARM PRODUCTS WILL ATTRACT ZERO TARIFF?
Dishing out details on the trade terms reached with the Trump administration, Goyal said several agricultural products would now attract zero reciprocal tariff in the US.
The issue has been politically fraught, with the opposition using it to corner the Modi government in Parliament. With Goyal's statement, several unanswered questions now get clarity.
"In agriculture, many products from India will now be exported to the US at zero duty," Goyal said, asserting that today would be "etched in golden letters". Tea, spices, coffee, and coconut oil will now face no tariffs in the US.
Moreover, Goyal said a wide range of fruits, vegetables and farm produce, including banana, mango, guava, avocado, kiwi, papaya, pineapple, mushrooms, cereals, barley, bakery products, cocoa products, and sesame seeds, would also enter the US market without duties.
"This India-US agreement does not harm the interests of India's farmers, MSMEs, or the handloom and handicraft sectors in any way," Goyal said.
WHICH INDIAN EXPORTS WILL BENEFIT FROM TRADE DEAL?
Beyond agriculture, Goyal said pharmaceutical exports to the US, worth about $13 billion, would now face zero duties along with gems and diamonds.
The Union Minister, who has been the face of the trade negotiations, said smartphones exported from India will also attract zero tariffs in the future. Among other Indian exports that will see reciprocal tariffs reduced to zero are aircraft parts, elementary auto parts, clocks, watches, essential oils, and certain home decor materials.
Goyal underscored that it would only strengthen India's position in global supply chains. Crucially, India now faces lower US tariffs (18%) than other competing economies like China and Indonesia.
More significantly, the additional 25% tariff imposed by Trump, linked to India's purchase of Russian oil, has been done away with altogether.
While China continues to face 35% tariffs, Vietnam and Bangladesh are subject to 20% duties. Tariffs on Indonesia are at 19%. "India now stands in a far more competitive position in the US market," Goyal said.
The details by Goyal give key insight into the balance of leverage between India and the US as they negotiated the trade deal. However, nothing is final until the final trade agreement is signed under an eccentric Trump.
India has secured a major trade advantage over its competitors, with Union Minister Piyush Goyal asserting that the trade deal with the US protected Indian farmers and MSMEs, while at the same time, it opened the US market to several agricultural products. Addressing a press conference on Saturday, hours after the interim trade framework was announced, Goyal stressed that no import benefits would be given to US agricultural products, and India opened its market selectively for certain American items like red sorghum, tree nuts, wines and spirits.
In essence, India flipped the script. While the US sought wider access to India's dairy and agriculture markets, New Delhi has managed to achieve zero reciprocal tariffs on several of its agricultural products, like tea, coffee, banana, mango, etc. This is explained below in detail.
"All those products on which we are 'aatma nirbhar' have been kept out of the agreement," Goyal said, claiming that the agreement, a year in the making, would open a $30 trillion market for Indian exporters. The final trade deal, whose protracted negotiations soured India-US ties, is expected to be signed in mid-March.
WHICH FARM PRODUCTS WILL ATTRACT ZERO TARIFF?
Dishing out details on the trade terms reached with the Trump administration, Goyal said several agricultural products would now attract zero reciprocal tariff in the US.
The issue has been politically fraught, with the opposition using it to corner the Modi government in Parliament. With Goyal's statement, several unanswered questions now get clarity.
"In agriculture, many products from India will now be exported to the US at zero duty," Goyal said, asserting that today would be "etched in golden letters". Tea, spices, coffee, and coconut oil will now face no tariffs in the US.
Moreover, Goyal said a wide range of fruits, vegetables and farm produce, including banana, mango, guava, avocado, kiwi, papaya, pineapple, mushrooms, cereals, barley, bakery products, cocoa products, and sesame seeds, would also enter the US market without duties.
"This India-US agreement does not harm the interests of India's farmers, MSMEs, or the handloom and handicraft sectors in any way," Goyal said.
WHICH INDIAN EXPORTS WILL BENEFIT FROM TRADE DEAL?
Beyond agriculture, Goyal said pharmaceutical exports to the US, worth about $13 billion, would now face zero duties along with gems and diamonds.
The Union Minister, who has been the face of the trade negotiations, said smartphones exported from India will also attract zero tariffs in the future. Among other Indian exports that will see reciprocal tariffs reduced to zero are aircraft parts, elementary auto parts, clocks, watches, essential oils, and certain home decor materials.
Goyal underscored that it would only strengthen India's position in global supply chains. Crucially, India now faces lower US tariffs (18%) than other competing economies like China and Indonesia.
More significantly, the additional 25% tariff imposed by Trump, linked to India's purchase of Russian oil, has been done away with altogether.
While China continues to face 35% tariffs, Vietnam and Bangladesh are subject to 20% duties. Tariffs on Indonesia are at 19%. "India now stands in a far more competitive position in the US market," Goyal said.
The details by Goyal give key insight into the balance of leverage between India and the US as they negotiated the trade deal. However, nothing is final until the final trade agreement is signed under an eccentric Trump.